Sliding oil prices may boost one airline: Analyst

Falling crude oil prices might provide a boost for one airline stock, Jamie Baker, senior airline analyst at JPMorgan, said Tuesday.

American Airlines—"It's the only major airline in the United States that doesn't hedge at all," he said. "Lower fuel prices will catch up a little bit more gradually for names like Delta, United, Southwest and others. But if fuel is the only thing that you're looking to play here, American is the way to do it."

Baker has been named the top airlines analyst by Institutional Investor magazine.

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On CNBC's "Fast Money," Baker said he was "not particularly concerned about capacity creep" in the industry.

File photo of American Airlines planes
Getty Images
File photo of American Airlines planes

"In any manufacturing business, when you have this profound of a decline in your input costs, it's common to see your manufacturing output rise," he said.

However, Baker said that research shows there's no correlation between falling oil prices and rising airline stocks.

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Yet, the link remains alive in many investors' minds.

"I don't think anybody could really look an investor in the eye with a straight face and tell them that lower fuel is anything but a huge positive for airline earnings and therefore airline share prices," Baker said.