Berkshire Hathaway sells entire stake of airline shares

Reuters has reported Berkshire Hathaway has sold its entire stake in airline shares, the news source said.

Berkshire Hathaway held an 11% stake in Delta, 10% in American, 10% in Southwest and 9% in United at the end of 2019, according to its annual report and company filings.

US airlines posted considerable losses in the first quarter, and are on track for a dismal second quarter, as travel restrictions and government-mandated lockdowns across the world have brought demand to a virtual standstill.

Warren Buffett, of Berkshire Hathaway said the world has changed for the airline industry.
American Airlines (AAL.O) has posted a USD 2.2 billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, while United Airlines (UAL.O) reported a loss of USD 1.7 billion for its first quarter.

The S&P 1500 Airlines index SPCOMAIR has lost 57.4% this year, compared with a 12.4% decline in the broader S&P 500 SPX.

Airlines in the United States have seen a near 95% drop in domestic passengers and are now working to reassure customers about the safety of air travel by instituting new cleaning and social distancing procedures.