Airline companies have been benefiting from cheaper oil but that doesn't mean it will translate into cheaper flight tickets, said Jamie Baker, JPMorgan airline analyst. In an interview with CNBC's "Squawk on the Street" on Thursday, Baker said that "100 percent of the fuel savings are being retained."

"It's the owners of these stocks that are reaping the direct benefits," he said. "Passengers will enjoy indirect benefits such as newer airplanes and onboard WiFi."