Billionaire investor Warren Buffet has sold all his airline shares

The world travel industry has hit a cul de sac as the foundation of the economic edifice has been hit by coronavirus pandemic. As the planes remain grounded for more than two months, it has shredded the stock price of airline companies more the 60% across the globe.

This phase of uncertainty has transmitted a shockwave to the investor as the prediction is that the recovery will be slow and demand will be suppressed, there is no hope of getting the airline industry back on track. This led the billionaire investor Warren Buffet company, Berkshire Hathway to sell all of their airline shares. The conglomerate had an 11% stake in Delta Airlines, 10% in American Airlines, 10% in Southeast Airlines and 9% of United Airline. This announcement was taken after the company lost $50 billion in first-quarter.

Further, to this report say that American Airlines has been working on negative free cash for almost three years. Now after this pandemic, American Airlines net debt stands at $21.5 Billion excluding $4.5 billion of cash stimulus given by the US government to fund the subsidized salaries to staffs and officials.

The world has changed for an airline company and it will be a tough task as those bustling terminals resemble ghost towers and people expect to be scared of flying for a long, long time. It can lead to other investors to follow the suits for survival and sell their stocks at low prices giving these companies, even more, liquidity crunch and

decreasing their chances of revival.

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