AAL vs LUV — which stock performed better?

American Airlines Group Inc. (AAL) versus Southwest Airlines Co. (LUV), Industrials, on 2026-07-22.

Result

American Airlines Group Inc. (AAL) performed better on 2026-07-22. AAL moved 1.730%, LUV moved -0.680%.

Why these two companies

American Airlines and Southwest Airlines head into Wednesday, July 22, 2026 under the same industry-wide cloud: a Motley Fool report published July 20, 2026 noted that U.S. gas prices topped $4 a gallon again as the Iran conflict drags on, reigniting jet-fuel cost pressure across the airline sector. Both carriers are also scheduled to report second-quarter 2026 earnings before the opening bell on Thursday, July 23, 2026 — the trading day immediately after this matchup — so Wednesday's session doubles as a positioning day ahead of results.

The research

American Airlines is one of the world's largest network airlines, flying passengers across the U.S. and to international destinations through its hub-and-spoke system. Southwest Airlines is the biggest low-cost domestic airline in the U.S., known historically for simple fares and no change fees, though it's now adding extras like assigned seats and bag fees.

One reason to like American: it has a large, loyal frequent-flyer base and premium international routes that can command higher fares, and it trades at a much lower share price than Southwest, which some investors see as more room to recover. One reason to like Southwest: it's introducing new revenue features (assigned seating, premium legroom, bag fees) that could boost income per passenger, and it has historically run a lower-cost operation than many rivals.

Both companies are currently dealing with higher jet fuel prices because of ongoing conflict-driven oil price increases, which eats into airline profits industry-wide. Something to keep in mind: both airlines report their quarterly earnings on the same morning, one day after this matchup, so a lot of investor attention right now is about positioning ahead of that news rather than long-term company changes.