Oil under $90, Hello JetBlue (JBLU)

With oil trading so low, just about any of the airline stocks could be a great bounce play and the Masters favorite, JetBlue Airways (NASDAQ:JBLU).  JBLU shares are up 6% today and once we get some calm back in the market, airlines stocks could really rally.

This is a get in and get out play, but with the oil trend going lower, airline stocks will benefit this week.

JetBlue Shares 101

JetBlue shares are trading around $6.25 today. 

Lower oil prices and the end of Hurricane Ike over the weekend helped bolster airline stocks Monday, with AMR Corp. and UAL Corp. managing to close higher despite a steep drop in the broader market.

As the price of crude oil continues to deflate into double-digit territory, brokerage firm UBS issued some ratings changes on the airline sector. Analyst Kevin Crissey noted that lower fuel prices should be a positive catalyst for the group, and he also cited the potential for upward earnings-estimate revisions.

In a note to clients, Crissey explained, "We believe the seasonality of oil prices, which are usually down in October, combined with what we think will be positive third-quarter earnings calls, should provide a near-term boost to shares."

Among yesterday's rating changes, Delta Air Lines (DAL), Northwest Airlines (NWA), UAL Corp. (UAUA), US Airways (LCC), and Continental Airlines (CAL) were raised from 'neutral' to 'Buy'.