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Warren Buffett Warned Investors About Airlines. Berkshire Just Raised Its Delta Stake to $5.4 Billion

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Warren Buffett Warned Investors About Airlines. Berkshire Just Raised Its Delta Stake to $5.4 Billion

Quick Read

  • Buffett once called airlines the
  • Delta's business looks nothing like the airline Buffett warned investors about in 2007, and that difference is the entire reason Berkshire's bet makes sense.
  • Retirees tempted to copy Berkshire's Delta position are looking at the wrong part of the filing.
  • Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

Berkshire Hathaway (NYSE: BRK.B) disclosed 57,320,000 shares of Delta Air Lines (NYSE: DAL) in its second-quarter 2026 portfolio. The position was worth $5.37 billion on June 30, according to the Form 13F Berkshire filed with the Securities and Exchange Commission on August 14.

The size of the bet is the story. Berkshire owned 39,809,456 Delta shares three months earlier, so it added 17,510,544 shares and increased the position by 44%. Delta was also the only airline reported in Berkshire’s quarter-end portfolio. That is a striking move from a company whose longtime leader spent years warning investors about the airline business.

Berkshire Put More Money Behind Delta

DAL price target

Berkshire’s Delta position had a market value of $2.65 billion at the end of March 2026. By June 30, a combination of additional purchases and a higher share price had lifted its reported value to $5.37 billion. The same filing no longer listed Constellation Brands and showed lower share counts for Bank of America, Capital One, Nucor, Kroger, DaVita and Ally Financial.

That makes Delta more than a small experiment. Still, the filing does not disclose what Berkshire paid for the new shares, who selected the investment or why it was made. Greg Abel became Berkshire’s CEO on January 1, 2026, while Warren Buffett remained chairman, but it would be a leap to assign the trade personally to Abel without confirmation from Berkshire.

DAL analyst ratings

Why Buffett’s Airline Warning Still Matters

In his 2007 shareholder letter, Buffett described airlines as the “worst sort of business,” using the industry as an example of a company that can grow rapidly while consuming enormous amounts of capital and producing disappointing returns for owners. Berkshire later held large positions in several major U.S. airlines before selling them during the disruption of 2020.

The new Delta stake does not prove Buffett’s old concerns have disappeared. Airlines still need expensive aircraft, large workforces and vast amounts of fuel. Delta expects its 2026 capital spending to exceed $5 billion, primarily for aircraft, fleet improvements and technology. The more useful question is whether Delta now earns enough from customers and partners outside basic economy tickets to offset some of those old weaknesses.

What Berkshire May See in Today’s Delta

Delta reported that its diversified revenue streams accounted for 61% of second-quarter revenue. Premium-product revenue increased 17% from a year earlier, loyalty and related revenue rose 19%, and remuneration from American Express climbed 16% to $2.4 billion. Those businesses can give Delta more ways to earn money than simply selling the lowest-priced seat.

Management maintained its full-year 2026 forecast for adjusted earnings of $6.50 to $7.50 per share and free cash flow of $3 billion to $4 billion. The risks are still visible. Adjusted fuel expense jumped 77% to $4.4 billion in the June quarter, while GAAP net income declined 25% from a year earlier. Delta also generated only $209 million of adjusted free cash flow during the quarter after $1.4 billion of capital spending.

DAL earnings explorer

What Retirees Should Take From the Trade

Delta raised its quarterly dividend from $0.1875 to $0.215 per share in June 2026. That annualizes to $0.86 if the board maintains the same payment, but dividends are not guaranteed. For retirees who depend on portfolio income, Delta’s dividend should be weighed against the company’s sensitivity to fuel prices, travel demand and the economy—not treated like interest from a savings account.

A 13F is also a delayed snapshot. Berkshire’s filing reports what it owned on June 30, not necessarily what it owns today, and it says nothing about an investor’s time horizon, tax situation or need for dependable withdrawals. The signal worth studying is analytical: Berkshire increased its exposure to a Delta that earns more from premium travel, loyalty and partnerships than the commodity airline Buffett once criticized. Following that reasoning may be useful. Copying the position blindly is not.

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