Berkshire Hathaway returns to airlines with $2.6 billion stake in Delta Air Lines

Berkshire Hathaway added a large share Delta AirlinesThis marks the conglomerate’s return to the airline industry after exiting the sector entirely during the Covid-19 pandemic in 2020.

The Omaha-based company became Delta Berkshire’s 14th-largest holding at the end of March, creating a position worth more than $2.6 billion, according to a new regulatory filing.

Warren Buffett stunned investors six years ago by selling Berkshire’s entire equity portfolio of US airlines, including shares worth more than $4 billion. Unified, American, Southwest and Delta Airlines. Buffett said at the time that the pandemic had fundamentally changed consumer behavior and travel habits.

The company, which is among Berkshire’s largest holdings, reduced its shares Strip while significantly increasing its relatively new position during the quarter Alphabet. Google’s parent company is now Berkshire’s seventh-largest holding.

Berkshire also started a small position. Macy’sIt was worth about $55 million at the end of the first quarter.

Buffett, who is stepping down as CEO after more than six decades as president, remains chairman of the Omaha, Nebraska-based company and continues to come into the office five days a week.

New CEO Greg Abel said he consulted the 95-year-old Buffett on investments and capital allocation, including resuming buybacks in the first quarter.

Buffett recently acknowledged his dissatisfaction with the investment climate as Berkshire’s cash pile reached a record approaching $400 billion.

“It’s not our ideal perimeter — or should I say periphery — in terms of distributing cash to Berkshire,” the former CEO said.