Warren Buffett Called Airlines the “Worst Sort of Business.” His Successor Just Built a $5.4 Billion Position Anyway.

Berkshire Hathaway CEO Greg Abel bolstered the company's stake in Delta Air Lines by 44%, amassing a $5.4 billion position in the airline. This move came just a quarter after Brady initially entered the position. Delta's revenue is now driven by premium, loyalty, and Amex streams, transforming it from the "bottomless pit" Buffett once labeled as an airline.

In Q2 2026, Delta's diversified, high-margin revenue contributed to 61% of the company's total revenue. Premium product revenue grew by 17%, loyalty program revenue increased by 19%, and American Express remuneration reached $2.4 billion, a 16% increase. Delta now expects $9 billion in Amex remuneration this year and $1.2 billion in Delta TechOps revenue, which has nearly doubled.

CEO Ed Bastian emphasizes a shift from price competition to value and experience-driven value proposition. Despite record fuel costs of $4.41 billion, Delta's management forecasted an adjusted EPS of $6.50 to $7.50 and free cash flow of $3 to $4 billion for FY 2026. The dividend was increased to $0.215 per share on June 18, 2026.

While Delta's stock has risen 44.02% over the past year and 19.66% year to date, it has dropped 7.77% in the past week to $82.41.