Tags: Warren Buffett | United Airlines | Oscar Munoz | travel

How Warren Buffett Made Money as United Airlines Dropped

How Warren Buffett Made Money as United Airlines Dropped
(AP file)

By    |   Wednesday, 12 April 2017 01:12 PM

Warren Buffett is the biggest shareholder of United Continental Holdings Inc., the airline company whose stock lost value amid a firestorm of criticism for forcibly removing a paying passenger from a flight.

The billionaire chief executive of Berkshire Hathaway Inc. was estimated to have lost as much as $90 million during the sell-off of United Airlines. But don’t cry for Buffett just yet, because it pays to be diversified.

He also is a big shareholder of American Airlines Inc., Delta Air Lines Inc. and Southwest Airlines Co., which gained from United’s public relations fiasco.

“All in all, Buffett's net profit on airline stocks Tuesday, by our calculations: $104 million, illustrating once again the investor's talent for making money even when the headlines are grim,” according to Fortune magazine.

United’s stock recovered somewhat from the 4 percent selloff as industry data showed favorable travel trends.

The controversy started after United ordered a passenger to be removed from a plane in Chicago shortly before departure to make room for an airline employee. As video recordings of the violent incident spread on social media, United became a target for condemnation.

Oscar Munoz, the chief executive of the airline, first blamed the passenger for being “disruptive” and “belligerent” and only later sounded more contrite in a second public apology.

“The truly horrific event that occurred on this flight has elicited many responses from all of us: outrage, anger, disappointment. I share all of those sentiments,” Munoz said in a statement. “I deeply apologize to the customer forcibly removed and to all the customers aboard. No one should ever be mistreated this way.”

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Warren Buffett is the biggest shareholder of United Continental Holdings Inc., the airline company whose stock lost value amid a firestorm of criticism for forcibly removing a paying passenger from a flight.The billionaire chief executive of Berkshire Hathaway Inc. was...
Warren Buffett, United Airlines, Oscar Munoz, travel
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2017-12-12
Wednesday, 12 April 2017 01:12 PM
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