Airline stocks have hit major turbulence recently after the price of oil started rebounding a few months ago, which has caused many investors to back away from the group. However, Jim Cramer refuses to back down and won't give up on airlines.
American Airlines has been a long-time favorite of Cramer's ever since its merger with U.S. Airways in 2013. Prior to the massive consolidations in this space, Cramer always considered airline stocks too dangerous to own because of the large quantity of buyers and tough competition.
However when the American-U.S. Airways deal went through, Cramer reconsidered his position on airlines because the long line of mergers proved that these companies could finally turn a profit.
Additionally, the collapse in oil prices have been nothing but a big fat positive for the industry, as the cost of jet fuel took away from the bottom line. Thus, it is understandable how American Airlines was the best performing stock in the Nasdaq 100 last year, up more than 100 percent.
While American did report a solid quarter in April, its stock has been slammed thanks to rising price of oil and investor rotation out of domestic stocks. Yet it trades at just five times this year's earnings estimates, which is absurdly cheap.
"At some point these airline stocks are going to become too cheap to ignore," the "Mad Money" host said.