Southwest Airlines' latest earnings report reflects the company's handling of oil's price plunge and its fuel hedging, according to CNBC's Jim Cramer.
"Remember, they never lost money [last quarter]," Cramer said on CNBC's "Squawk on the Street" on Thursday. "This is domestic strength."
Cramer made his remarks following the company's latest earnings report. Southwest surpassed expectations after posting fourth-quarter adjusted earnings of 59 cents per share versus an EPS estimate of 55 cents. Revenue also increased to $4.63 billion, up from $4.43 billion a year ago.
"[Southwest is] worth every penny," Cramer said. "Southwest is very well hedged, unlike [American Airlines]." Cramer added other airlines, including United Continental Holdings, lost money due to fuel hedging.
DISCLOSURE: When this story was published, Cramer's charitable trust did not own any of the stocks mentioned in this story.
—Jacob Pramuk contributed to this report