Jim Cramer says Southwest Airlines (LUV) is his favorite stock in the industry.

"Southwest ... is the best," Cramer said in his latest exclusive conference call for members of his Action Alerts PLUS club for investors. "I do talk to [CEO] Gary Kelly on a regular basis and Southwest is doing incredibly well."

Cramer, whose charitable trust owns Southwest shares, noted that the discount carrier doesn't face as much competition on its routes as other airlines do. In addition, LUV serves the Permian oil Basin in Texas, where Cramer said business doesn't depend on oil prices but simply on the energy industry's activity, "which is way up."

Warren Buffett also famously bought shares in Southwest and three other airlines last year after long steering clear of the industry. But Cramer said: "I don't believe the chatter that says Warren Buffett is going to buy it all."

He added that investors should wait for a pullback to buy Southwest shares. "Would I come in and buy it right here?" he asked. "No, I'd wait until it comes down."

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At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long LUV.

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