NEW YORK (TheStreet) --Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) took to the skies for its next headline-grabbing investment. Regulatory filings revealed Monday that Buffett's company had purchased stakes in American Airlines (AAL), Delta Air Lines (DAL), United Continental (UAL), and Southwest Air (LUV).

Increasing the significance of the investments, Buffett was prominently burned by a position he took in U.S. Airways nearly 30 years ago. Buffett has yet to comment on what caused him to rethink investing in the Industry.

Raymond James airline analyst Savi Syth tried to make sense of the billionaire's investment on CNBC's "Squawk Box" this morning.

"I think the industry is still competitive, given the consolidation and I think the actors are behaving better, she said. "The valuations are still very attractive compared to other industrial companies."

Valuations of these stocks took a hit when investors became fearful of declining fuel costs resulting in the airlines increasing capacity. The improved valuations are a result of moderating both capacity growth, and unit revenue declines, Syth explained.

"From a valuation perspective, they have never looked more attractive," she said. "There is increased optimism that some of those earnings will remain."

Along with the attractive valuation of these stocks, the fundamentals have also improved throughout the industry, she added.

"But, this is still a cyclical sector, and they haven't found a cure for that yet. The direction of the U.S. economy and global economy will be important for these shares," Syth noted.

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