Airlines going bust

[thriftyandboringinohio]

Re: Airlines going bust

As of 2nd Q 2018 Berkshire had significant stakes in four airlines, Delta, United, Southwest and American. Not sure it they still own those positions, but Buffett isn't the trading sort either.

Most interesting.
Buffet had a pretty bad experience with US Air, as I recall, before we wrote that investor letter.
Guess he sees something different now.

[thriftyandboringinohio]

Re: Airlines going bust

... fuel prices have been rising recently, and my expectation is the world is setting up for another oil price shock sometime in the next 6 to 12 months (I am back in Texas yet again right after this Easter weekend and may post an amplification of this theme). That is never a good time for a business, like an airline, where fuel is one of the largest input costs. The low cost carriers have thinner margins and more price sensitive consumers.

But they are all going to be challenged if my outlook proves correct.

GRG55 I am looking forward to hearing more of your opinions on this one.

[dcarrigg]

Re: Airlines going bust

+1

[Mega]

Re: Airlines going bust

Update:-

[Mega]

Re: Airlines going bust

AS I see it:-

SH1t head decides he is going to build an airline..............he go's to the bank.......he has no real business plan. However the bank has the central bank to fall back on...........so no worries.

Make loan, (con-mission) lease planes (Con-mission) service debt (con-mission)................airline colaspe (con-mission)........sell off assets (con-mission) ..........send ALL debt to central bank!

Everyone loses, expect the banks.

Mike