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Cramer: Delta is ‘a very cheap stock’

Thinking about investing in airline stocks? Think about buying Delta Air Lines, CNBC's Jim Cramer said Thursday.

"This is a very cheap stock," Cramer said on "Squawk on the Street," after the company posted better-than-expected first-quarter earnings. Shares of Delta closed up nearly 1 percent.

The airline reported diluted earnings per share of $1.32, above the expected $1.30.

"Here's what I really like about it: Capacity is not going to increase nearly as much as I thought," Cramer said. "They're talking about a 2-to-3 percent increase in capacity; there were a lot of concerns when these stocks took their big swoon, that it might be a 4-to-5 percent capacity increase."

However, Delta noted that the strong dollar cut sales by $125 million.

"The dollar really hurt them. If the dollar continues to get weaker, you're going to see a very big earnings gain here. I like this stock very much," Cramer added.

Read MoreThe $5 million bet on a Delta rally

The dollar index remains higher compared to historical levels, but has fallen nearly 4 percent this year.

Disclosure: Cramer's trust did not own Delta stock when this article was published.