BUFFETT SELLS  AIRLINES - TRIMS HIS HOLDINGS

Buffett Sells Airline Positions As Richard Bransons Virgin On Rocks

Spooked By Virgins Atlantics Collapse

Taking a warning shot across the bow from the Virgin Atlantic bankruptcy , Warren Buffett is lightening up his airline holdings. Getting out while the getting is good, Buffett trimmed his positions.

It isnt known whether Buffett fears a total collapse in the airline industry, or he is freeing up CASH to make a more advantageous investment in the airlines in coming months. Buffett is known for cutting very luccerative deals with troubled companies.      

Warren Buffett’s Berkshire Hathaway said recently that it sold about 18% of its stake in Delta Air Lines and 4% of its holdings in Southwest Airlines  as the coronavirus pandemic drives the airline industry into perhaps its biggest crisis ever.



According to regulatory filings, Berkshire sold nearly 13 million Delta shares for about $314 million and roughly 2.3 million Southwest shares for about $74 million.

The SEC filings show. Berkshire previously owned about 11.1% of Delta stock and 10.4% of Southwest stock.

Berkshire did not immediately respond to Wall Street Researcher's request for comment.

The Omaha, Nebraska-based conglomerate is among the biggest shareholders of the four largest U.S. carriers - Delta, Southwest, American Airlines and United Airlines.

Berkshire’s sales were disclosed after major U.S. airlines applied  for payroll grants from the U.S. Treasury to help keep workers employed.

The pandemic has punished the industry, as passengers stay home and carriers worldwide slash their schedules and ground planes. Delta projected on Friday that its second-quarter revenue would fall 90%.



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