Why Warren Buffett Just Made a $2.6 Billion Bet on Delta Airlines in Q1 — 6 Years After Exiting the Stock

Despite stepping down from the helm of Berkshire Hathaway in late 2025 to make way for Greg Abel, legendary investor Warren Buffett still visits the office every day and influences important trades at the firm.’I can still contribute a tiny bit,’ Buffett had told CNBC recently, adding that he purchased ‘something new,’ which he declined to reveal.However, the latest Form 13G filing with the US Securities and Exchange Commission revealed Buffett likely played a role in adding a new stock to Berkshire’s portfolio in Q1. According to the regulatory filing, Berkshire Hathaway opened a new position in Delta Air Lines, acquiring a whopping 39.8 million shares or 6.1% of the company, worth $2.71 billion.Berkshire had been sitting on massive cash reserves north of $350 billion, and Buffett likely pushed for the new stock buy after a pause due to extreme market fluctuations.The Oracle of Omaha had sold the Delta Air Line stock in 2020 when global travel came to a grinding halt. Even now, rising oil prices amid shortage risks are hampering airline operations, resulting in delays and cancellations.
Thousands of travelers were stranded in the US as major airlines, including Delta, American Airlines, United Airlines, Alaska Airlines, and Air Canada, among others, delayed over 4,193 flights and cancelled 106 flights on Monday. The disruption affected those moving through the cities of Atlanta, Denver, Chicago, Las Vegas, Los Angeles, Detroit, New York, and Washington. Denver International Airport witnessed the highest number of delays with 507 disrupted flights.Amid this chaos, Buffett potentially saw an opportunity in Delta Air Line, which is proactively working to protect its margins and cash flow.Delta’s Own RefineryThe company said in its Q1 earnings release it is ‘meaningfully’ lowering capacity growth, ‘with a downward bias until the fuel environment improves and moving quickly to recapture higher fuel costs.’The company had also stressed that it is positioned to overcome the dynamic environment and expects to lead the industry with $1 billion of profit.However, the biggest reason Buffett likes Delta Air Line is because the company owns a refinery in Pennsylvania that processes crude oil into jet fuel. Delta purchased the refinery back in 2012. At the time, buying an aging refinery did not make much sense, but today, the bet is starting to look more consequential.

Buffett likes Delta Air Line because the company owns a refinery in Pennsylvania
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Delta’s Trainer refinery is owned by its unit, Monroe Energy. The airline still pays market prices for fuel transferred from its Monroe refinery to its airline operations, but owning the 208,000 barrel-per-day refinery means the profit from refining fuel remains within the company instead of going to outside suppliers.Delta didn’t mention how much of the current oil price spike Monroe could offset, but filings revealed it has contained its fuel costs considerably during periods of widening refining margins.Delta Air Line CEO ?Ed Bastian also told Reuters recently that rising jet fuel prices had added $400 million to the airline’s fuel bill in March, but the refinery provides a ‘meaningful hedge’ on the refining margin between crude oil and jet fuel.’It’s not going to cover the crack entirely. But (it) gives us a fairly significant hedge,’ and Monroe’s profits should start contributing in Q2, Bastian had added. In the first quarter, the company posted higher adjusted earnings per share of $0.64 on revenue of $15.9 billion.Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional guidance before investing. Remember, investments are subject to market risks, and past performance does not guarantee future results.