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Warren Buffet, one of the richest people in the world sold all its assets in airlines, including Delta Air Lines and American Airlines. He says that the aviation industry will not wear that losses in the future.
Warren Buffett, the legendary American investor, warns than “The world has changed “for the aviation industry due to the coronavirus crisis, according to The Guardian.
The investor, through his company, Berkshire Hathaway, held important positions at four US airlines. Buffet had an 11% interest in Delta Air Lines, owned 10% of Southwest Airlines and American Airlines shares and 9% of United Airlines at the end of 2019.
“I took the money out of business, even at the cost of a substantial loss. We will not finance a company that we believe will cut money in the future, “Buffet said.
Actions around the world will face another hot week, while COVID-19 infections top 3.5 million and the death toll is around 250. 000around the world
Despite the Central Bank and government intervening, the stock markets were affected by the spread of the coronavirus, the collapse of the oil price and Donald Trump’s threats to resume the trade war with China.
The outlook seems particularly bleak for the aviation industry, which has been hit by air traffic jams, leading to mass layoffs and even bankruptcy of some companies.
British company FlyBe came under management in the early days of the crisis, and Virgin Atlantic applied for a £ 500 million bailout loan, which Richard Branson was willing to guarantee with his private island. British Airways and Ryanair have announced mass layoffs. Virgin Australia filed for bankruptcy and Lufthansa asked the German government to save it so as not to get to the same point.
