Announces the sale of all shares in the four largest airlines in the United States.
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Warren Buffett announced that the conglomerate Berkshire Hathaway Inc. sold all of its shares in the four largest airlines in the United States.
The group held significant positions in airlines, including an 11% stake Delta Air Linesfrom 10% of American Airlines Co.According to the annual report and company reports, around 10% of Southwest Airlines Co and 9% of United Airlines were at the end of 2019.
Airline stocks were hit hard by the early collapse in US travel demand amid the COVID-19 pandemic.
“We made this decision regarding the airline business. We made money from the business, which is essentially a significant loss,” said Buffett. “We will not fund a company that we believe will use money in the future.”
Buffett said Berkshire had invested about $ 7 to $ 8 billion to buy shares in all four airlines, including American Airlines Group Inc.
“We didn’t get between $ 7 and $ 8 billion, and that was my mistake,” Buffett added at the meeting, which was broadcast online. “I’m the one who made the decision.”
US airlines cut hundreds of thousands of flights and have thousands of planes on the ground as demand for travel in the U.S. has decreased by 95% and there is no clear schedule for passengers who are supposed to fly as before the crisis.