Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 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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3 Undervalued Passenger Airlines Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Passenger Airlines industry for Thursday, July 02, 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.

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.

Delta Air Lines, Inc.’s Value Grade

Value Grade:

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Detroit, Minneapolis-St. Paul, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Santiago (Chile), Sao Paulo, Seoul-Incheon, and Tokyo. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages. The company operates through a fleet of approximately 1,314 aircraft. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.

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.

Delta Air Lines, Inc. has a Value Score of 66, which is considered to be undervalued.

When you look at Delta Air Lines, Inc.’s price-to-sales ratio at 0.93 compared to the industry median at 0.62, this company has a higher price relative to revenue compared to its peers. This could make Delta Air Lines, Inc.’s stock less attractive for value investors.

Delta Air Lines, Inc.’s price-earnings ratio is 13.60 compared to the industry median at 12.05. This means it has a higher share price relative to earnings compared to its peers. This could make Delta Air Lines, Inc. less attractive for value investors.

Now, let’s assess Delta Air Lines, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 6.9, when compared to the industry median of 6.3, 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. Delta Air Lines, Inc.’s shareholder yield is the same than its industry median ratio of (0.40%). 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. Delta Air Lines, Inc.’s price-to-book ratio is higher than its industry median ratio of 2.27. This could make Delta Air Lines, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Delta Air Lines, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Delta Air Lines, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 15.40. This could make Delta Air Lines, Inc. less attractive because the higher P/FCF ratio indicates that Delta Air Lines, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Southwest Airlines Co.’s Value Grade

Value Grade:

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.

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.

Southwest Airlines Co. has a Value Score of 65, which is considered to be undervalued.

Southwest Airlines Co.’s price-earnings ratio is 33.1 compared to the industry median at 12.1. This means that it has a higher price relative to its earnings compared to its peers. This makes Southwest Airlines Co. less attractive for value investors.

Southwest Airlines Co.’s price-to-book ratio is lower than its peers. This could make Southwest Airlines Co. more attractive for value investors when compared to the industry median at 2.27.

You can read more about Southwest Airlines Co.’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.

Republic Airways Holdings Inc.’s Value Grade

Value Grade:

Republic Airways Holdings Inc. provides scheduled passenger services. The company operates a fleet of approximately 275 aircraft and offers scheduled passenger service with 1,300 daily flights to 130 cities across the United States, Canada, the Caribbean, and Mexico. Republic Airways Holdings Inc. was founded in 1974 and is based in Carmel, Indiana.

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.

Republic Airways Holdings Inc. has a Value Score of 85, which is considered to be undervalued.

Republic Airways Holdings Inc.’s price-earnings ratio is 12.0 compared to the industry median at 12.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Republic Airways Holdings Inc. more attractive for value investors.

Republic Airways Holdings Inc.’s price-to-book ratio is higher than its peers. This could make Republic Airways Holdings Inc. less attractive for value investors when compared to the industry median at 2.27.

You can read more about Republic Airways 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 3 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.

• Delta Air Lines, Inc. stock has a Value Grade of B.
• Southwest Airlines Co. stock has a Value Grade of B.
• Republic Airways Holdings Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 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.

• 3 Undervalued Passenger Airlines Stocks for Wednesday, July 01
• Why Surf Air Mobility Inc.’s (SRFM) Stock Is Down 10.34%
• Why Surf Air Mobility Inc.’s (SRFM) Stock Is Down 7.33%
• Why Republic Airways Holdings Inc.’s (RJET) Stock Is Up 7.31%

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.