Berkshire Hathaway Inc. has acquired a $2.6 billion stake in Delta Airlines Inc., purchasing 39.8 million shares representing a 6.1% stake in the airline as of March 2025. According to regulatory filing reports, this investment comes as airlines face higher fuel costs following the US-Iran war, which effectively closed the Strait of Hormuz and sparked energy supply concerns. The move is being viewed as Berkshire's return to the airline sector after fully exiting airline stocks during the pandemic in 2020. The investment sent Delta's shares up more than 3% in late trading, marking a significant development in the conglomerate's relationship with the airline industry.
This investment represents the first major move under newly installed Chief Executive Officer Greg Abel, who took the reins at Berkshire this year after Warren Buffett stepped down following six decades at the helm. As reported by the Wall Street Journal, Abel has offloaded equity holdings previously managed by Todd Combs, Berkshire's former stock-picker, who joined JPMorgan Chase & Co. in December for a broad investing advisory role. The filing marks a significant shift in Berkshire's investment strategy under new leadership, with this airline investment marking a notable return to the aviation sector after the company's previous exit during the Covid-19 pandemic.
Beyond the Delta investment, Berkshire made several other notable portfolio adjustments during the quarter. According to regulatory filings, the conglomerate exited its position in Amazon.com Inc. while boosting its holding in Alphabet Inc., adding 36.4 million shares in Google's parent company. The company also exited positions including Visa Inc., Mastercard Inc., UnitedHealth Group Inc., Diageo plc, Pool Corp. and Domino's Pizza Inc.
Berkshire also revealed it has amassed a stake in retailer Macy's Inc., with shares of the department store operator jumping 5% following the company's solid Q4 results. Macy's reported comparable store sales up 1.8% and strong performance at Bloomingdale's despite a slight revenue decline. The company maintains cautious guidance for fiscal 2026 due to macroeconomic uncertainties, but free cash flow yield is strong at over 15%, and the stock trades at an attractive 12 times price-to-earnings ratio. Technical indicators show the shares are about 20% undervalued, with key support near $18 ahead of the upcoming Q1 earnings report.
This airline investment represents a complex evolution in Berkshire's relationship with the aviation sector. Under former CEO Warren Buffett, Berkshire had a tense relationship with airlines over decades, with Buffett once joking in 2001 about being an 'air-o-holic' after troublesome investments. The conglomerate previously exited airline holdings in 2020 during the Covid-19 pandemic, but this latest investment under new leadership suggests a renewed interest in the sector amid current market conditions. This return to the airline sector marks a significant strategic shift for the conglomerate under its new leadership structure.
