Berkshire Hathaway doubles Delta Air Lines stake as Abel shifts investment strategy
The move marks a significant departure from Warren Buffett’s previous stance on the sector, coinciding with record financial results and debt reduction at the US carrier.
Berkshire Hathaway has increased its position in Delta Air Lines by 44 per cent during the second quarter of 2026, raising the holding to 57.3 million shares valued at approximately $5.4 billion. The investment decision was made under the leadership of Greg Abel, who succeeded Warren Buffett as chief executive in January 2026. This expansion follows a period where the conglomerate had previously divested its entire airline portfolio in 2020, a move Buffett described as necessary due to the sector’s historical volatility.
Abel outlined a strategy in February 2026 stating that Berkshire would maintain core positions but stay disciplined and concentrated with outside investments. The Delta buy, and the decision to nearly double down on it a quarter later, fits that description closely. The stake grew from approximately $2.6 billion at the end of March 2026 to $5.4 billion by the end of June 2026, signalling strong conviction in the airline’s trajectory under new management at both firms.
Delta Air Lines reported record second-quarter revenue of $17.7 billion and pretax profit of $1.4 billion, driven by diversified revenue streams including cargo and loyalty programs. The airline reduced long-term debt to $10.5 billion and maintains investment-grade credit ratings while guiding for full-year earnings growth of 20%. Total shareholders’ equity rose from $15.3 billion at the end of 2024 to $21.8 billion at the end of Q2 2026, reflecting improved balance sheet strength.
Diversified revenue streams, such as premium seating, loyalty programs, cargo, and maintenance work, made up 61 per cent of total revenue in the quarter. Premium and loyalty revenue each grew by nearly 20 per cent, while cargo revenue jumped 39 per cent in the second quarter. The American Express partnership is expected to generate $9 billion for Delta in 2026, a 10 per cent increase from 2025, further insulating the carrier from traditional fare wars.
Delta is guiding for full-year earnings of $6.50 to $7.50 per share, representing 20 per cent growth from the previous year. Management also pointed to a longer-term goal of mid-teens operating margins and returns on invested capital. For Berkshire, which already walked away from airlines once, doubling its Delta stake in a single quarter suggests Abel and his team see something durable here, not just a short-term rebound.
