Warren Buffett has been pouring billions of dollars into an industry he once warned people to avoid. It seems that his sentiment for the airline business has changed lately, as for the second time in six months, Berkshire Hathaway is putting their chips on multiple airline companies such as American, Delta, Southwest and United Airlines for a total of close to $10 billion.
His investment between the different players in the field are about equal across the board, with 2 to 3 billion dollars in each, showing confidence for the entire industry.
The domestic airline industry has changed much in the last 10 years. There have been many buyouts leaving a handful of companies to compete for consumers. Less competitors, less competition. Also the massive decline in the oil markets and lower labor costs. All of these factors helped contribute to record profits.