Berkshire Hathaway has sold $314 million worth shares of Delta Airlines and about 4 percent divested stake in Southwest airline, which was published by US Securities and Exchange Commission filings.
Berkshire Hathaway is primarily owned by billionaire investor Warren Buffett. The Berkshire Hathaway has sold 13 million shares of Delta Airlines on 11th and 12th March’20 priced between $22.96 and $26.04.
There is an expected 90 percent plunge in the revenue of the airline in the second quarter of financial year 20. Delta Airlines CEO Ed Bastian has stated that the Delta airline is burning more than $60 million in cash every day, and they have still not seen the bottom. Also, without self-help actions, they are taking to save costs and raise new financing, and that money is gone by June. Even the 30,000workers of Delta airlines have applied for unpaid voluntary leaves.
Despite Buffet’s longtime skepticism of the sector, the US airlines enticed him three years ago, are now turning to the government for financial aid as the passengers are not traveling and are staying at home. The airlines are also applying for the financial aid of $25 billion as assistance so that they can make the payment of the payroll and an additional $25 billion as a loan.
One of the initial sectors hit by the COVID-19 pandemic is the aviation sector, as several major airlines were forced into hiatus due to the lockdown around the globe countrywide.
In India commercial as well as private aircraft of total 650, which also comprised other non-scheduled operators have been parked indefinitely after the Prime Minister imposed the 21-day lockdown from 24th March’20.
The pandemic has made the sky gloomier for all the aviation players around the globe. Also, as per the ICRA rating agency, the outlook for the Indian Aviation industry will remain negative due to the viral outbreak. The agency also stated that the direct impact on the travel to and from the corona virus affected countries, also the economic shock to the global economy, which will have a medium-term impact on the Indian aviation industry.