In the past week, Ryanair Holdings RYAAY, based in Ireland, came up with an encouraging update on passenger volumes for fiscal 2025 (ended March 31). In the process, the low-cost airline became the first European carrier to transport 200 million passengers in a year.

With the demand for long-haul travel remaining buoyant, much to the relief of U.S. carriers, United Airlines UAL has decided to add flights to various Pacific destinations. Alaska Airlines, a wholly-owned subsidiary of Alaska Air Group ALK, will start a new nonstop service between Seattle and Seoul Incheon. An expansion update from American Airlines AAL was also available in the past week.

Southwest Airlines’ LUV outlook was downgraded by Fitch Ratings to a negative warning that its new policies could backfire. Reversing its long-standing free baggage policy, LUV recently announced that it will start charging customers (with some exceptions) to check bags. The news was covered in detail in the previous writeup.

Recap of the Recent Most Important Stories

1. It is no secret that U.S. airlines are suffering big time due to the tariff-induced slowdown in domestic air travel demand. In this scenario, long-haul travel demand remains impressive. Taking advantage of the situation, United Airlines has decided to grow its Pacific flights. UAL has decided to introduce service to destinations like Thailand and Vietnam. The Chicago-based carrier positions itself as the first airline to provide nonstop service to Adelaide, Australia. Starting Dec. 11, 2025, UAL is expected to start its nonstop three-times-weekly seasonal service from San Francisco to Adelaide, Australia, targeting the Australian summer season.

UAL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2. Ryanair reported solid traffic numbers for March 2025, driven by upbeat air travel demand. The number of passengers transported on Ryanair flights was 15 million in March 2025, reflecting a 10% year-over-year increase. RYAAY’s traffic in March was higher than the February reading of 12.6 million and the January reading of 12.4 million.

The March load factor (percentage of seats filled by passengers) of 93% remained flat on a year-over-year basis, reflecting consistent passenger demand for the airline's services. The March load factor was higher than the load factor of 92% reported in February 2025 and 91% reported in January 2025. Notably, RYAAY operated more than 84,000 flights in March 2025. 

3. In a bid to broaden its network, Alaska Airlines will start a new nonstop service between Seattle and Seoul Incheon. The service will commence on Sept. 12. Flights on this route will be operated by Hawaiian Airlines, which was acquired by Alaska Air last year.

A long-haul, widebody Airbus A330-200 aircraft will operate on the route. The Pacific Northwest will be linked to South Korea via this route as Alaska Air develops the Seattle hub into a new global gateway. ALK’s announcement to operate on this route intensifies competition, with Delta Air Lines DAL and partner Korean Air reportedly dominating this route.

4. Citing concerns over LUV’s potential shift toward a less conservative financial policy and the risks posed by recent strategic changes, such as introducing bag fees and expiry of flight credits, Fitch Ratings lowered its outlook on the low-cost carrier to Negative from Stable. The rating agency warned that ongoing strategic changes may adversely impact the competitive position of the Dallas-based airline relative to network carriers.

5. In a bid to broaden its network, American Airlines is introducing new routes to two popular destinations — Cancun, Mexico and Punta Cana, Dominican Republic — while also expanding services on routes to Hawaii, South America and Europe.

Starting Nov. 8, 2025, AAL plans to offer international service from Oklahoma City to Cancun, marking itself as the first carrier to provide such connectivity from the state of Oklahoma. This route will be served on Saturdays using Boeing 737 aircraft.

Performance

The following table shows the price movement of the major airline players over the past week and during the last six months.

Image Source: Zacks Investment Research

With airline stocks getting crushed due to tariff-related woes, it is hardly surprising that all airline stocks in the table traded in the red over the past five trading days. The NYSE ARCA Airline Index decreased 11.3% to $51.27. Over the past six months, the sector tracker has decreased 9.9%.

What’s Next in the Airline Space?

Delta will kickstart the first-quarter 2025 earnings season for airlines on April 9. Sluggish passenger volumes, mainly on the domestic front, are likely to hurt results. However, low fuel costs are likely to have boosted its bottom line.

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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report

Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report

United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

Southwest Airlines Co. (LUV) : Free Stock Analysis Report

American Airlines Group Inc. (AAL) : Free Stock Analysis Report

Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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