Warren Buffett Invests $2.65B in Popular Airline After Reassessing Stocks
In 2020, Berkshire Chairman of the Board Warren Buffett dumped over $4 billion in airline stock, an industry he long thought was a “value trap,” at a loss. Today, however, Berkshire’s new CEO, Greg Abel, has reinvested in one airline in particular.
A Surprising Investment
The Street recently reported that in Berkshire’s 13f filing, the investment giant acquired 39,809,456 shares of Delta Air Lines (DAL) valued at approximately $2.65 billion. It’s one of the largest new positions announced in years for the company, but the investment doesn’t seem as risky as you may think.
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Yes, six years ago, Buffett dumped the stock, along with that of other airlines, but Delta’s recent reports show why Abel may have reconsidered this particular industry. There are three key factors in the stock acquisition.
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Delta’s revenue mix has changed course. The premium cabin seating revenue rose by 14% while loyalty and other related revenue grew 10%, according to a March 2026 report. These revenue streams are less sensitive to the fuel crisis pricing plaguing other industries.
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Delta’s balance sheet is stable. The company’s debt has fallen by $760 million since the end of 2025, and its liquidity exceeds $8 billion. The numbers the company is reporting are looking more stable, attracting the eye of serious investors.
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Delta’s secret revenue growth is in its Maintenance, Repair, and Overhaul (MRO) unit. According to Yahoo! Finance, this branch of Delta’s business reported $846 million in revenue in 2022, a figure that has grown since then.
When you understand these three pillars of Delta’s business, the reinvestment into this particular airline doesn’t look so risky or surprising.
Related: Delta Is Changing Its In-Flight Service—and It Might Actually Be a Relief
What Changed
In 2020, when Buffet dumped the stocks, Delta didn’t have the framework it does now. While other airlines are assuring customers that the fuel crisis won’t affect summer travel but may change prices, and some airlines are shuttering altogether, Delta is seeing revenue growth.
“It turns out I was wrong,” notes Buffet in a paper published by Yale School of Management. But the long-term investor is allowed to be, considering the unexpected outcome of Delta outperforming in the current economy.
The main growth sector for actual ticket sales is in corporate travel demand. Even in our current environment, Delta’s survey results showed that 85% of corporate travelers are expecting to increase their budgets this year. Given the vertical has grown by double digits year over year and the airline’s continued revenue growth, it looks like Abel’s investment strategy is a wise one.