Warren Buffett reverses bearish stance on US airlines with $1.2bn investment

Previously called the sector a 'death trap'

Warren Buffett has backtracked on his long-term bearish view of the airline industry, which he previously called a "death trap", to invest more than $1.2bn in four US airlines.

According to the FT, disclosure of the investments by his company Berkshire Hathaway yesterday led shares in United Continental Holdings, American Airlines Group, Delta Air Lines and Southwest Airlines to climb in after-hours trading. The filings show that Berkshire Hathaway has built a $797m stake in American Airlines as of 30 September, $238m in United Continental and $249m in Delta. The Southwest stake was not included as it was purchased after the end of Q3 2016. In 2013, Buffett (pictured) told investors that the airline industry was a "death trap" due to its intense competition,...