LONDON (ShareCast) - (ShareCast News) - Berkshire Hathaway chairman Warren Buffett has revealed the closely followed investment company bought shares in the four largest US airlines, having avoided the sector in years following a bad previous investment.
Berkshire has acquired stakes in American Airlines, Delta Air Lines, Southwest Airlines and United Continental Holdings, showing confidence in the US economy and the transportation industry.

Buffett has steered a wide course away from airlines following the company's bet on US Air Group almost two decades ago, with the group eventually transforming into American.

In a regulatory filing, Berkshire Hathaway was shown to own 21.8m American Airlines shares, worth $797m; 6.3m Delta shares, worth $249.3m; and 4.5m United shares, worth $237.8m.

The well-known investor has said since that he also invested in Southwest, in order to inform investors that he was not avoiding the carrier.

US airlines have been boosted in recent years by a reduction in fuel costs and higher fees charged to customers for items such as checked baggage. The four companies posted a combined $21.7bn profit in 2015, controlling more than two thirds of the US market.

In 2008 Buffett said airlines were businesses which were not very profitable and he would not be investing in them any time soon.

"A durable competitive advantage has proven elusive ever since the days of the Wright Brothers," he wrote in his February 2008 shareholder letter.

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