you are here: HomeNewsWorld
Last Updated : Apr 06, 2020 06:06 PM IST | Source: Moneycontrol.com

Warren Buffett's Berkshire Hathaway sells airline stocks worth nearly $400 m

On Feb 27, Buffett's company had scooped up nearly one million shares of Delta Air Lines at $46.40 apiece, taking its total holding to about 71.9 million shares, or about 11.2 percent, of the company.


Billionaire investor Warren Buffett’s Berkshire Hathaway sold $314 million worth of shares of Delta Air Lines and divested about 4 percent of its stake in Southwest Airlines, according to US Securities and Exchange Commission filings.

Berkshire Hathaway sold 13 million shares (18 percent of its stake) of Delta Airlines on March 11 and 12 priced between $22.96 and $26.04 apiece.

The news comes after the airline operator said it expects revenues to plunge 90 percent in the second quarter of FY20.

“Delta is burning more than $60 million in cash every day, we know we still haven’t seen the bottom,” Delta CEO Ed Bastian wrote in a memo to employees. “Without the self-help actions we are taking to save costs and raise new financing, that money would be gone by June.”


On Feb 27, Buffett's company had scooped up nearly one million shares of Delta Air Lines at $46.40 apiece, taking its total holding to about 71.9 million shares, or about 11.2 percent, of the company.

Separately, the company dumped about 2.3 million shares of Southwest Airlines for about $74 million.

Close

The aviation sector has been one of the worst-hit from the COVID-19 pandemic as several major airlines were forced into hiatus due to lockdowns around the globe.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

In India, over 650 commercial aircraft as well as private jets, comprising other non-scheduled operators, have been parked indefinitely, after PM Modi put the country on a 21-day lockdown on March 24.

The epidemic has made the sky gloomier for aviation players. As per rating agency ICRA, the outlook for India's aviation industry remains "negative" in the wake of viral outbreak.

"The direct impact on travel to and from the coronavirus affected countries, the medium-term impact on the Indian aviation industry would also depend on the economic shock to the global economy," ICRA said in a note on February 27.
First Published on Apr 6, 2020 08:27 am
Sections