Selloff US airline shares tumble

US airlines posted losses in the first quarter and are on track for a dismal second quarter due to Covid-19

WASHINGTON: Shares of the top four US airlines dropped on Monday after billionaire investor Warren Buffett said Berkshire Hathaway offloaded its entire stake in the carriers last month, adding to the sense of crisis around the industry.

US airlines posted considerable losses in the first quarter and are on track for a dismal second quarter as travel restrictions and government-mandated lockdowns across the world have brought demand to a virtual standstill.

“The world has changed” for the aviation industry, Buffett said at Berkshire Hathaway’s annual meeting on Saturday.

American Airlines has posted a $2.2-billion net loss, its first quarterly loss since emerging from bankruptcy in 2013, while United Airlines reported a loss of $1.7 billion for its first quarter. Shares in Delta Air Lines, American Airlines and United Airlines were all down more than 13% after the start of trading while Southwest Airlines Co was down 9%.

Published in The Express Tribune, May 5^th, 2020.

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