Key Takeaways:
Berkshire Hathaway Inc. has returned to the airline sector, building a stake in Delta Air Lines Inc. worth more than $2.6 billion as of the end of the first quarter.
The move comes six years after Chairman Warren Buffett soured on the industry, selling Berkshire’s entire airline portfolio for more than $4 billion and stating the pandemic had fundamentally changed travel.
The new regulatory filing shows the Delta investment is now Berkshire’s 14th-largest holding. The filing also revealed a new, smaller position in Macy's valued at $55 million and an increased stake in Google-parent Alphabet.
The investment, made during new CEO Greg Abel’s first quarter, may signal a strategic shift or a value play on a recovering industry, attracting investor attention back to a sector Berkshire had publicly abandoned.
The filing also suggests a continued unwinding of positions linked to former investment manager Todd Combs, who left for JPMorgan in late 2025. Berkshire fully exited stakes in Amazon, Mastercard, and Visa — all seen as Combs-driven bets.
While Buffett historically viewed airlines as "capital-destroying," some corners of the aviation market have thrived. Aircraft lessor AerCap Holdings N.V. (AER), for example, has been highlighted by some investors as a "misunderstood compounder," benefiting from tight aircraft supply and strong carrier demand to generate resilient cash flow.
The shift comes as Berkshire’s cash pile approaches a record $400 billion. Buffett, now 95 and serving as chairman, recently expressed frustration with the current environment for deploying the firm's massive cash reserves.
The Delta stake suggests Berkshire, under new investment leadership, sees value in the airline industry that it exited just six years ago. Investors will watch Berkshire's next 13F filing in August for signs of a broader sector bet or a one-off strategic investment.
This article is for informational purposes only and does not constitute investment advice.
