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Berkshire Hathaway Inc has sold its units
shares on the four largest US airlines in April, reports Reuters. This was announced by himself
Warren Buffett, chairman of the investment fund, met throughout the year.
the company that announced the “world has changed” for aviation
industry
At the end of 2019, the billionaire fund
had significant positions in the airlines, including an 11% stake in Delta Air
Lines, 10% from American Airlines Co, 10% from Southwest Airlines Co and 9% from United
Airlines
The conglomerate was one of the largest.
individual shareholders in the four airlines. In 2016, the fund revealed that
has started investing in four airlines after escaping for years
sectors.
The actions of the airlines were greatly affected
from the recent collapse in U.S. travel demand amid a pandemic of
coronavirus.
US airlines cut hundreds
thousands of flights and thousands of planes landed as search trips in
The United States has dropped about 95% and it is unclear when flights will return to levels
before the crisis
Buffett said the outlook for airlines
change quickly “We made this decision regarding the business of
Airlines We make money from this business, even with a significant loss. ”
Buffett said. “We will not finance a company that burns money in the future.”
Berkshire revealed on April 3 that it had sold approximately
18% of its participation in Delta and 4% of its shares in Southwest.
Buffett said the fund has invested around 7 or
$ 8 billion in accumulation of interests in four airlines, including
American Airlines Group Inc.
“We didn’t get anything like $ 7 billion or $ 8 billion.
dollars and that was my mistake, “Buffett said at the company’s annual meeting,
which was broadcast live. “I was the one who made the decision.”
Southwest, United States, and United States refused
comment before Reutes
Delta said in a statement that it was aware
with the sale, and has “great respect for Mr. Buffett and the Berkshire team.”
The airline added that “it remains convinced that strengths are fundamental
for Delta business: our people, our brand, our network and ours
operational reliability: Delta will be maintained and positioned to succeed. “
Buffett said he had thought about doing it before.
invest in other airlines.
“The shock is that the search has essentially dried up. Pa
essentially we exclude air travel in this country, “added Buffett.
He had previously expressed gloomy feelings about
The financial perspective for airlines. He invested in USAir in 1989.
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