Buffett Hands Over to Abel, Increases Delta Air Lines Stake
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: Fool
- Decision-Making Transition: In Q1 2026, Warren Buffett transferred investment decision-making authority at Berkshire Hathaway to Greg Abel, who increased the stake in Delta Air Lines to $2.65 billion, representing about 1% of Berkshire's portfolio.
- Impact of Oil Price Surge: The war with Iran caused jet fuel prices to nearly double in Q1, and despite the high fuel cost pressures on airlines, Abel's decision to buy Delta during stock declines reflects confidence in the company's resilience.
- Refinery Advantage: Delta's acquisition of an oil refinery in Pennsylvania has allowed it to offset fuel costs, reporting operating incomes of $38 million and $157 million in 2024 and 2025, respectively, and is expected to mitigate a $300 million increase in fuel costs in 2026.
- Market Consolidation Outlook: CEO Ed Bastian anticipates that rising fuel prices will lead to significant structural reforms in the airline industry, with weaker competitors potentially exiting the market, positioning Delta to capture greater market share and strengthen its leadership, aligning with Abel's long-term investment strategy.
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Analyst Views on DAL
Wall Street analysts forecast DAL stock price to rise
18 Analyst Rating
18 Buy
0 Hold
0 Sell
Strong Buy
Current: 82.490
Low
77.00
Averages
83.50
High
90.00
Current: 82.490
Low
77.00
Averages
83.50
High
90.00
About DAL
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company has hubs and markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon, and Tokyo. Its segments include Airline and Refinery. Its airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and includes its loyalty program, as well as other ancillary businesses. Its refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel as well as non-jet fuel products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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