The CEO and Chairman of Berkshire Hathaway, Warren Buffett, has invested billions of dollars into the US Airline Industry. Even though he thought that the US Airlines was a deathtrap for investors back in 2013. He mentioned that they had a bad time just like many other companies and that you have to keep going in a fair relationship.
The Airlines have better profits now because there are fewer competitors. Warren Buffett believes that they are more profitable for investors at this present time. They have to change the frequent-flyer program from miles based now on the money spent, and also implement baggage fees. The four US Airlines are doing the same with the frequent-flyer program miles and it is working fine for all of them.
The airline consolidation has helped them to be profitable and strength their capacity in the domestic market, but also at the international level. Afterward, he said that there have been more than 100 Airline bankruptcies and that it is a disaster for capital. Fortunately, everything has changed and the US Airlines are doing better.
Warren Buffett has invested in American, Delta, United, and Southwest. Furthermore, he said he might buy a whole Airline, and that Southwest Airlines is at the top of his list. He mentioned that he would love to do a massive acquisition even though he already has shares in Southwest. However, he also mentions that he likes to buy companies with solid cash flows, competitive advantages, and higher management teams, he wishes to have more productive assets.