This airline stock will fly to new highs

Spirit CEO: Any market has value conscious flyers
Spirit CEO: Any market has value conscious flyers   

Over his long tenure of investing, Jim Cramer has seen that sometimes the market does things that just don't make any sense. Such was the case with his airline fave stock, Spirit Airlines, when a vicious downgrade in December caused the stock to drop to $68 from $84.

The stock has now soared back to $80, mainly because airlines are the biggest beneficiary in the historic decline in oil prices. Yet, the stock still only trades at 15 times next year's earnings estimates, and Cramer thinks it could fly higher.

To find out how Spirit has managed to find opportunity amid a volatile market, the "Mad Money" host spoke with Spirit Airlines CEO Ben Baldanza.

Spirit Airlines
Getty Images
Spirit Airlines

"There is more opportunity for two reasons; one is that other airlines' fares continue to rise, which creates more of an umbrella for a discounter like us. And two, our costs keep getting lower. As our costs keep getting lower, more opportunities become available for us to fly profitably," Baldanza said.

The CEO commented on the impact of the declining price of oil to the airline industry, stating that with the airline's biggest input cost dropping, this allows for a more economic environment for them to charge lower fares.

However, the company still thinks creatively about how to find ways to make money without charging higher fees or raising ticket prices.

"We always keep thinking of what we could put in the pipeline. But the reality is to continue to grow our non-ticket revenue, most of that would be from things that customers don't typically buy from airlines but could buy through our website so that we get a commission. Things like hotels, rental cars, tee times and parking," Baldanza added.

The CEO commented that he felt comfortable that the low-cost bottom line oriented business model will continue to remain strong for the future.

----------------------------------------------------------
Read more from Mad Money with Jim Cramer
Cramer Remix: What this oil price means
Cramer: Twitter's enormous red flag
Cramer's two signs that oil's bottomed already
----------------------------------------------------------

"In any market, strong or weak, there is clearly a segment of the market that is most value conscious and is willing to make the trade off in order to get a lower fare for their travel and will accept some of the tradeoff that we ask them to make."

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Cramer's New Book