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ALGT

ALK

SNCY

ULCC

Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Passenger Airlines industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Passenger Airlines Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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4 Undervalued Passenger Airlines Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Passenger Airlines industry for Wednesday, February 25, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Passenger Airlines industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
Allegiant Travel Company	ALGT	0.72	na	7.7	(0.8%)	1.81	na	B
Alaska Air Group, Inc.	ALK	0.45	63.3	8.8	8.3%	1.47	na	B
Sun Country Airlines Holdings, Inc.	SNCY	0.94	20.7	6.7	0.3%	1.69	12.6	B
Frontier Group Holdings, Inc.	ULCC	0.28	na	na	(1.6%)	2.17	na	B

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Allegiant Travel Company’s Value Grade

Value Grade:

Metric	Score	ALGT	Industry Median
Price/Sales	25	0.72	0.61
Price/Earnings	na	na	15.9
EV/EBITDA	22	7.7	6.7
Shareholder Yield	55	(0.8%)	(0.2%)
Price/Book Value	47	1.81	1.99
Price/Free Cash Flow	na	na	14.5

Allegiant Travel Company, a leisure travel company, provides travel and leisure services and products to residents of under-served cities in the United States. It operates through two segments, Airline and Sunseeker Resort. The company offers scheduled air transportation on limited-frequency, nonstop flights between under-served cities and leisure destinations. As of February 1, 2025, it operated a fleet of 119 Airbus A320 series aircraft and four Boeing 737 series aircraft. The company also provides air-related services and products in conjunction with air transportation, including larger seats, baggage fees, advance seat assignments, travel protection products, change fees, priority boarding, a customer convenience fee, food and beverage purchases on board, and other air-related services, as well as use of its call center for purchases. In addition, it offers third party travel products, such as hotel rooms and ground transportation, such as rental cars and hotel shuttle products; travel insurance from a third party insurer; and air transportation services through fixed fee agreements and charter service on a year-round and ad-hoc basis. Further, the company owns and operates a golf course. Allegiant Travel Company was founded in 1997 and is based in Las Vegas, Nevada.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Allegiant Travel Company has a Value Score of 70, which is considered to be undervalued.

When you look at Allegiant Travel Company’s price-to-sales ratio at 0.72 compared to the industry median at 0.61, this company has a higher price relative to revenue compared to its peers. This could make Allegiant Travel Company’s stock less attractive for value investors.

Now, let’s assess Allegiant Travel Company’s EV/EBITDA ratio, also known as enterprise multiple. At 7.7, when compared to the industry median of 6.7, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Allegiant Travel Company’s shareholder yield is lower than its industry median ratio of (0.20%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Allegiant Travel Company’s price-to-book ratio is lower than its industry median ratio of 1.99. This could make Allegiant Travel Company more attractive to investors looking for a new addition to their portfolio.

Alaska Air Group, Inc.’s Value Grade

Value Grade:

Metric	Score	ALK	Industry Median
Price/Sales	17	0.45	0.61
Price/Earnings	88	63.3	15.9
EV/EBITDA	28	8.8	6.7
Shareholder Yield	7	8.3%	(0.2%)
Price/Book Value	39	1.47	1.99
Price/Free Cash Flow	na	na	14.5

Alaska Air Group, Inc., through its subsidiaries, operates airlines. It operates through three segments: Alaska Airlines, Hawaiian Airlines, and Regional. The company offers scheduled air transportation services on Boeing jet aircraft for passengers and cargo in the United States, and in parts of Canada, Mexico, Costa Rica, Belize, Guatemala, and the Bahamas; and for passengers across a shorter distance network within the United States, Canada, and Mexico. Alaska Air Group, Inc. was founded in 1932 and is based in Seattle, Washington.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Alaska Air Group, Inc. has a Value Score of 73, which is considered to be undervalued.

Alaska Air Group, Inc.’s price-earnings ratio is 63.3 compared to the industry median at 15.9. This means that it has a higher price relative to its earnings compared to its peers. This makes Alaska Air Group, Inc. less attractive for value investors.

Alaska Air Group, Inc.’s price-to-book ratio is higher than its peers. This could make Alaska Air Group, Inc. less attractive for value investors when compared to the industry median at 1.99.

You can read more about Alaska Air Group, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Sun Country Airlines Holdings, Inc.’s Value Grade

Value Grade:

Metric	Score	SNCY	Industry Median
Price/Sales	31	0.94	0.61
Price/Earnings	50	20.7	15.9
EV/EBITDA	17	6.7	6.7
Shareholder Yield	41	0.3%	(0.2%)
Price/Book Value	45	1.69	1.99
Price/Free Cash Flow	32	12.6	14.5

Sun Country Airlines Holdings, Inc., an air carrier company, operates scheduled passenger, air cargo, charter air transportation, and related services in the United States, Latin America, and internationally. It operates through two segments, Passenger and Cargo. The company also provides aircraft, crew, maintenance, and insurance services through ad hoc, repeat, short-term, and long-term service contracts; loyalty program rewards; and ancillary services.. As of December 31, 2025, its fleet consisted of 70 Boeing 737-NG aircraft, which includes 47 passenger fleets, 20 cargo, and 3 leased to unaffiliated airlines aircraft. The company serves leisure and visiting friends and relatives passengers; charter and cargo customers; military branches; collegiate and professional sports teams; wholesale tour operators; schools; companies; and other individual entities through its website, call center, and travel agents. Sun Country Airlines Holdings, Inc. was founded in 1982 and is headquartered in Minneapolis, Minnesota.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Sun Country Airlines Holdings, Inc. has a Value Score of 72, which is considered to be undervalued.

Sun Country Airlines Holdings, Inc.’s price-earnings ratio is 20.7 compared to the industry median at 15.9. This means that it has a higher price relative to its earnings compared to its peers. This makes Sun Country Airlines Holdings, Inc. less attractive for value investors.

Sun Country Airlines Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make Sun Country Airlines Holdings, Inc. less attractive for value investors when compared to the industry median at 1.99.

You can read more about Sun Country Airlines Holdings, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Frontier Group Holdings, Inc.’s Value Grade

Value Grade:

Metric	Score	ULCC	Industry Median
Price/Sales	12	0.28	0.61
Price/Earnings	na	na	15.9
EV/EBITDA	na	na	6.7
Shareholder Yield	60	(1.6%)	(0.2%)
Price/Book Value	54	2.17	1.99
Price/Free Cash Flow	na	na	14.5

Frontier Group Holdings, Inc., provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, such as websites, mobile apps, and contact centers. As of December 31, 2025, it had a fleet of 176 Airbus single-aisle aircraft. Frontier Group Holdings, Inc. was founded in 1994 and is headquartered in Denver, Colorado.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Frontier Group Holdings, Inc. has a Value Score of 61, which is considered to be undervalued.

Frontier Group Holdings, Inc.’s price-to-book ratio is lower than its peers. This could make Frontier Group Holdings, Inc. more attractive for value investors when compared to the industry median at 1.99.

You can read more about Frontier Group Holdings, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Passenger Airlines Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Passenger Airlines stocks as well as other industrys.

Choosing Which of the 4 Best Passenger Airlines Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

Allegiant Travel Company stock has a Value Grade of B.
Alaska Air Group, Inc. stock has a Value Grade of B.
Sun Country Airlines Holdings, Inc. stock has a Value Grade of B.
Frontier Group Holdings, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 undervalued stocks in the Passenger Airlines industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Passenger Airlines Stocks

Want to learn more about Passenger Airlines stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.