The "Fast Money" traders discussed airline stocks on Tuesday, as the sector continues on a descent and lags behind the rest of the market.
The NYSE Arca Airline Index fell more than one percent on Tuesday and is down 3 percent in the last 3 months.
Trader Tim Seymour said the sector is trading negative because of the efficiency of the airlines and their lack of capacity discipline.
Trader Pete Najarian said the capacity issue is overplayed and said he likes Delta. He said he is waiting on a $50 price level. Shares of Delta closed at $45.11 on Tuesday.
Pete owns calls AA, BAC, BZH, CLF, DAL, ETE, FB, FEYE, GE, GLD, HMY, INTC, JPM, KMI, MAR, MRO, MPEL, QVCA, TECK, TPX, UNP, WFT, WLL, VALE, XLF, XLNX, ZIOP. Pete is long AAP, AAPL, AMD, BAC, CL, DLTR, DIS, EBAY, EMR, GILD, GM, HAIN, HUM, IBM, INTC, JWN, K, KO,KORS, KMX, LUX, MAR, MDLZ, MOS, MSRT, MRK, RL, TPX, TRN, UNP, V, PFE, WFT.
Steve Grasso's firm is long AON, BX, CUBA, DIA, EXAR, F, HES, ICE, KDUS, MAT, MFIN, MJNA, MSFT, NE, PYPL, RIG, SNAP, SPY, SQBG, TITXF, WDR, WPX, ZNGA. Grasso is long CHK, EEM, EVGN, GDX, KBH, MJNA, MON, OLN, PFE, PHM, T, TWTR, VRX. Grasso's kids own EFA, EFG, EWJ, IJR, SPY. NO SHORTS.
Dan Nathan is long SPY May put spread, XLV long APR-June put spread, XLI long June put spread, CMG long call calendar.
Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT;
Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM