The airline industry has been one of the hardest hit by this summer’s run-up in crude oil prices.

British Airways (LON:BAY) CEO Willie Walsh says it’s “the worst trading environment the industry has ever faced.”

But crude oil’s retreat from its early-July peak has led investors back into the industry, says Martin Denholm in The Smart Profits Report.

At a time when the airline industry is under assault from skyrocketing fuel prices and a sluggish U.S. economy, it's hard to imagine that a talk by the president of the leading American carrier would not be dominated by discussions of job cutbacks, reduced routes and higher fares.

A dozen out-of-favor stocks that could rebound this year according to Barron's.