Traders say Southwest struggles don't doom airlines — here's where they're looking
The " Fast Money " traders picked stocks they liked in the airline sector amid a pullback.
A key airlines ETF (NYSE Arca: .XAL) dropped nearly 2 percent on Wednesday, after Southwest Airlines (NYSE: LUV) reported a quarterly profit drop of 33.6 percent .
Southwest's Wednesday decline isn't necessarily bad news for all airlines, trader Tim Seymour said.
"They are a mass market and low-priced carrier. That's not the same business as American (NASDAQ: AAL) or Delta (NYSE: DAL)," Seymour said, adding that he still likes the airlines and thinks they have attractive valuations.
Trader Karen Finerman agreed and said she also likes American and Delta.
Trader Steve Grasso said he likes Spirit Airlines (NASDAQ: SAVE), which he said rebounds faster than other airlines when the sector gets hit.
Disclosures:
PETE NAJARIAN
Pete Najarian is long stock: AAPL, BAC, DIS, DISCA, GE, KMI, KMI.A, KO, LUX, MRK, P, PEP, PFE, calls: ABT, AMD, ATVI, BABA, BAC, BBY, CNX, COP, CS, DISH, ECA, ETP, GM, GRPN, GS, INTC, JBLU, JCP, KGC, LLY, LOW, M, MOS, MRO, MRVL, MT, MUR, NAV, NBR, PBR, RIO, SCTY, SBUX, TTS, TV, TWTR, VRX, WFT, WLL, X, XLF and puts: TWTR.
STEVE GRASSO
Steve Grasso is long: BA, CC, CHK, EVGN, KBH, MJNA, MON, MU, OLN, PFE, PHM, T, TWTR, GDX. Grasso's children own: EFA, EFG, EWJ, IJR, SPY. No shorts. Grasso's firm is long: VIRT, DVN, LDP, WDR, AVP, CVX, FCX, ICE, KDUS, KO, MAT, MCD, MJNA, NE, NEM, OLN, OXY, RIG, STAG, TAXI, TEX, TITXF, URI, ,WDR, WYNN, ZNGA, CUBA, HSPO, ICE, AMZN, MJNA, TITXF, SPY, QQQ, DIA, XLI, BGCP, VIRT, GE, AIR FP
KAREN FINERMAN
Karen Finerman is long AAL, BAC, C, DAL, long DB calls, FB, FL, GOGO, GOOG, GOOGL, JPM, LYV, KORS, KORS calls, KORS puts, M, MA, SEDG, SPY puts, UAL, URI, WIFI long call spreads. Her firm is long ANTM, AAPL, BAC, C, C 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.
TIM SEYMOUR
Tim Seymour is long ABX, APC, AVP, BAC, BBRY, CLF, CVX, DO, DVYE, EDC, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD,MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, T, TWTR, VALE, VZ, XOM and short: SPY, XRT. His firm is long ABX, BABA, BIDU, CBD, CLF, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM.
More From CNBC
Top News and Analysis
Latest News Video
Personal Finance