Why International Airline Stocks Are Trouncing United, American -- Barrons.com

Dow Jones
Aug 05

By Doug Busch

Ryanair Holdings ADR, the Ireland-based European discount carrier, is flying high, up more than 40% year to date and just 3% shy of all-time highs.

Shares surged 14% in the week ended July 25 on strong volume, and held most of that move during the week ending Aug. 1, slipping just 2.6%, a show of relative strength versus the U.S. Global Jets exchange-traded fund 5.9% drop.

On the daily chart, the stock broke out above a cup-with-handle base pivot of $59.46 in late July, and momentum remains constructive. A move toward the very round $90 number looks likely by early first quarter 2026. Stay bullish above $56.

Ryanair Holdings ADR traded around $63 Monday.

Latam Airlines Group ADR, the dominant carrier across South America, quietly returned to NYSE trading a year ago after its COVID-era bankruptcy, and it hasn't looked back.

Shares are up 55% year to date, outpacing rivals like United Airlines and American Airlines, off 13% and 37% respectively in 2025. With a 2.4% dividend yield and a stable technical profile, experiencing more than two consecutive weeks of losses only once in the past 12 months, the stock stands out as a pocket of strength in a struggling sector.

The daily chart shows a clean breakout above a bull flag, targeting $50 by late third quarter. Technically intact above $40, stay long.

Latam Airlines Group ADR was trading at $43 Monday.

United Airlines, a leading domestic carrier, is working to regain altitude.

Despite a backdrop of soft crude prices, the group remains under pressure. UAL is down 27% from its 52-week high, while peer American Airlines trades 42% below its own peak.

On Friday, United filled the July 9 gap, bounced off its rising 50-day SMA, and notably closed well off session lows as broader markets rolled over. While the stock shed over 7% last week, it's still holding a good portion of its gains from a remarkable 18-week win streak between last September and December. As long as it stays above the $80 level, the long setup remains valid.

United Airlines was trading around $86 Monday.

Another domestic aerospace name to watch is Joby Aviation, which reports earnings Wednesday afternoon.

The company is working to launch an electric air taxi service, a bold bet on the future of short-haul mobility. While buying just before earnings is generally risky, it's worth noting Joby has posted four straight positive earnings reactions.

Round number theory at $10 held firm as resistance in both January and June before the stock jumped with a 12% surge on June 30, backed by more than twice its average volume. That breakout cleared a 7-month cup base, and in classic growth-stock fashion, Joby Aviation is now offering an add-on entry above a bull flag trigger at $18, which it was above in the early going Monday. Best to wait until after the report Wednesday and look for a successful pullback, but if this name proves itself again, it could have a long runway ahead, pun intended.

Joby Aviation traded around $21 Monday.

Write to Doug Busch at douglas.busch@barrons.com.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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August 04, 2025 14:40 ET (18:40 GMT)

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