Delta (DAL) began a new chapter in its history amid a cloudy outlook for the airline industry. Today new shares began trading on the big board after the company emerged from bankruptcy protection.

This is about the only bright spot in the industry right now, as higher jet fuel prices and softening demand has the rest of the group on a steady slide.

With DAL closing 1.5% higher, will the recovery spark a larger turnaround for the airlines?

Tim Strazzini thinks Jet Blue (JBLU) is the trade because Delta is focusing on international travel, now. Consequently he thinks Southwest Airlines (LUV) will become JetBlue’s only competition in the low cost domestic space and says own either of them.

Tim adds Continental (CAL) and American (AMR) are also still packed with travelers and they still have pricing power. He likes these companies, too.

Guy Adami disagrees. He says airlines are down 36% since January. If the tape turns these stocks are going to get hammered.

Questions? Comments?

Trader disclosure:
On May 3, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Macke owns (SWY), Strazzini owns (JBLU),(VZ); Bolling owns (DIS, (TSO) Puts,

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