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The U.S. Global Jets ETF (JETS) - Get U.S. Global Jets ETF Report launched successfully almost a year ago, quickly pulling in over $50 million in assets. Still, the fund of airline stocks is only up just over 2% since itsinception, even as cheap oil is leading to record profits in the industry.

"These stocks are so undervalued, they trade at one third the value of trucks in the Transportation Index and they are trading at half the multiple of the S&P 500," Said Frank Holmes, CEO of U.S. Global Investors (GROW) - Get U.S. Global Investors, Inc. Class A Report , the company behind the JETS ETF.

Holmes added that the major airlines are buying back billions of dollars of stock because they see their shares as cheap.

As to why airline stocks are not seeing respect in the marketplace during such a profitable time, Holmes said the industry cannot escape the "Warren Buffett stigma." 

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"People love to quote Warren Buffett saying that the airline industry is a bad industry because he lost money," said Holmes. "But it's changed. You have CEOs like the CEO of American Airlines (AAL) - Get American Airlines Group, Inc. Report that says pay me no cash, just stock."

That shows a lot of confidence, especially because American Airlines' stock is down over 20% in the past year. On that note, United Continental's (UAL) - Get United Airlines Holdings, Inc. Report stock is down 15% in the past 12 months and Southwest Airlines (LUV) - Get Southwest Airlines Co. Report has dropped around 5%.

Holmes said the underperformance of the larger air carriers has a lot to do with pressure from the Department of Justice and accusations that the carriers are colluding to raise fares.

"That's a lot of short-term noise," said Holmes, who expects the bigger players to bounce back as global trade picks up.

Meanwhile, he said some of the smaller regional players like Alaska Air (ALK) - Get Alaska Air Group, Inc. Report , up 17% in the past year, and Hawaiian Air (HA) - Get Hawaiian Holdings, Inc. Report , up 119%, will continue to be strong performers heading into the summer.