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Traders pick airlines as sector climbs

The "Fast Money" traders discussed which airline stocks they would invest in after the sector climbed on Tuesday following some leadership changes.

On Monday, J. Scott Kirby left his role as president of American Airlines to take the same role at United Continental. The US Global Jets ETF gained 2.1 percent on Tuesday as United and American shares climbed 8.6 percent and 2.4 percent, respectively.

Trader Karen Finerman said while there was a lot of positive reaction to the management changes made at United and American, it may have been "over done."

Trader Tim Seymour said the rally in the airline stocks on Tuesday may be due to investors being more "willing to embrace sectors that look cheap, that offer some dividend yields." He said he likes Delta Air Lines here.

Trader Guy Adami said he likes Spirit Airlines as a risk-reward trade in the sector.


Disclosures:

PETE NAJARIAN

Long stock AAPL, BAC, BMY, DIS, DISCA, GE, KMI.A, KMI, KO, LUX, PEP, PFE, TGT, VIAB and calls: AAL, ABT, AKS, AMD, BAC, CIT, CNX, COP, CSCO, CRM, DAC, DISH, DVN, EGO, ETP, FSLR, FXI, GLD, GT, HALO, KGC, KO, LLY, MS, MT, MU, NEM, P, SBUX, SLV, SLW, SYMC, TGT, TMUS, TTS, TWTR, UA, VRX, XLE Puts: CLF, EEM, MBLY, MRO, PII.

TIM SEYMOUR

Tim Seymour is long APC, AVP, BAC, BBRY, CLF, DAL, DO, DVYE, EDC, EWZ, F, FB, FCX, FXI, GM, GOOGL, GRMN, GE, INTC, LQD, M, MCD, MPEL, NKE, RACE, RAI, RH, RL, SINA, T, TWTR, UA, VALE, VZ, XOM and short: SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO, and short HYG, IWM.

KAREN FINERMAN

Karen Finerman is long AAL, BAC, C, DAL, DRII, DRII calls, FB, FL, GOOG, GOOGL, JPM, LYV, KORS, KORS, KORS puts, M, MA, SEDG, SPY puts, UAL, URI, WIFI long call spreads. Her firm is long ANTM, AAPL, BAC, C, C calls, DRII, DRII calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, PLCE, SPY puts, URI, WIFI and short IWM, MDY. Finerman is on the board of GrafTech International.

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.