Buffett Predicts ‘Fair Amount’ of Gain on Airlines, But No Cinch

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 Warren Buffett, who took giant stakes in the four biggest U.S. airlines after years of criticizing the industry, said he could make "a fair amount" on the investment if carriers keep a stronger grip on fares.

  • The airlines are filling more of their seats than before, and labor relations have improved, Buffett said
  • Question is whether cos. can avoid debilitating price wars after a wave of bankruptcies and mergers left fewer major competitors
  • "It is no cinch that the industry will have some more pricing sensibility in the next 10 years than they had in the last 100 years, but the conditions have improved for that," Buffett said at the BRK/A annaul meeting in Omaha
  • NOTE: Buffett’s comments underscored his bet that airline consolidation will end the boom-and-bust cycle that had led

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