Several notable investors, including Warren Buffett have abandoned the airline stocks. It should be pointed that they have sold the shares much cheaper than they bought. Warren Buffett, for example, sold 6.1 billion USD worth Big Four (American, Delta, United, and Southwest) shares in April. Only now he told it to the press but the panic sell was obvious without his revelations.
No business as usual?
Among all the chart that show exponential growth, there is one particularly interesting. It is tourist count by years. Ever since the WWII ended it grows in geometric progression. In 2018 there was 1.4 billion tourism trips, and majority of tourists came via passenger jets. In the same time, civil aviation is at historically lowest levels of prices and highest points of safety.
Doomsday prophets say that it will never be the same. But let’s get to raw numbers: despite all the horrors of death of 0.0031 percent of the world population it will be somewhat short to fundamentally change the people by itself. Let me guess, after weeks of quarantine, you do want to go to Spain? Or Greece? Or you would like to prefer to “stay home stay safe”? Online courses, anybody?
So my guess is that Warren Buffet is already buying the shares back. He will tell us it some months later.