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Cramer: This stock could double

A day after US Airways and American Airlines agreed to merge into what will become the world's largest airline, CNBC's Jim Cramer said Wednesday that US Airways shares could double.

"And don't forget, these companies just got much more lucrative for the first time ever," Cramer said on "Squawk on the Street." "It will cost you more to fly. Obviously, they will refute that."

(Read more: Antitrust lessons for future mergers in U.S. airline deal)

US Airways CEO Doug Parker is one of his favorite executives, Cramer said, adding that with the deal, four carriers will dominate the industry.

"You want some bold predictions?" he asked. "The ... deal is so unbelievably great for US Air that I believe this stock could catapult. ... The stock could double."

(Read more: Cramer's natural winners)

US Airways Group and American Airlines made the merger announcement Tuesday after settling a lawsuit with the Department of Justice, which sought to block the union on concerns it would drive up fares and hinder competition.

As of early Wednesday afternoon, US Airways shares hovered between $23.13 and $24.30. The merger was part of American's effort to end a two-year bankruptcy process.

Adam Jeffery | CNBC

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street." Reuters contributed to this report.

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