Which US Airline Stocks Merit Investor Attention Following Government Shutdown Recovery?

As the longest federal shutdown in American history—lasting 43 days—concludes, airline operators are experiencing meaningful market rebounds. This presents an opportune moment to evaluate which carriers offer genuine upside potential and which remain vulnerable to operational aftereffects including flight cancellations, crew shortages, and booking uncertainty.

International Carriers Gaining Traction Against Domestic Peers

While the Zacks Transportation-Airline Industry ranks in the bottom quartile among 240+ classified sectors, foreign operators have demonstrated exceptional strength. This outperformance reflects resilience as international routes to the US normalize following disruption.

LATAM Airlines has captured market attention with extraordinary performance, posting +65% year-to-date gains and earning a Zacks Rank #2 (Buy) rating. As Latin America’s premier carrier, LATAM stands as a clear market leader in its region. Similarly, International Consolidated Airlines Group—the parent entity managing British Airways operations—has climbed nearly +40% in 2025, approaching its 52-week peak of $11 per share with a Zacks Rank #3 (Hold). Both dramatically exceed the sector’s +6% YTD benchmark.

Domestic US Carriers Worth Monitoring

Regional Excellence and Upgrade Momentum

SkyWest represents the sole other domestic airline holding a Zacks Buy rating alongside LATAM. Operating regional hubs across Midwestern and Western markets, the carrier has triggered positive earnings revision momentum. Fiscal 2025 EPS estimates have risen 4% over the past month (climbing from $9.95 to $10.33), while FY26 projections advanced 7%, reaching $11.08.

Major Carriers in Transition

United Airlines and Delta Air Lines, commanding the strongest international capacity and profitability metrics among major US operators, currently maintain Zacks Rank #3 (Hold) classifications with potential for ratings upgrades. Both have demonstrated resilient upward EPS revisions despite operational headwinds. Their financial strength is underscored by valuations near the 10X forward earnings industry average and below 1X forward sales multiples—metrics suggesting reasonable entry points for quality operators.

While major carriers face revenue pressures from prolonged disruptions, United and Delta’s scale and efficiency provide buffering capacity against sustained negative impacts.

Aviation Stocks Presenting Higher Risk

The Zacks framework identifies six Transportation-Airline stocks rated #4 (Sell) and two rated #5 (Strong Sell) based on deteriorating earnings revision trends. Notable weakness appears in Alaska Air Group and Sun Country Airlines—a Minnesota-based budget operator serving US, Latin American, and Caribbean routes—both landing Strong Sell designations amid earnings contraction signals.

The post-shutdown environment will likely reward carriers demonstrating operational excellence and financial flexibility while exposing those with tighter margins to sustained pressure.