To expand on Buffett selling his airline stock:

 

“It’s obviously changed in the fact that the four companies are each going to borrow perhaps an average of at least $10 or $12 billion each,” Buffett said. “You have to pay that back out of earnings over some period of time.”

 

Buffett expects further short-term aviation weakness from over-capacity. “The airline business has the problem that if the business comes back 70% or 80%, the aircraft don’t disappear,” he said. “You’ve got too many planes.”

 

In my opinion he’s cutting losses and taking a conservative approach with his fortune.

Delta/American down 8% at the open. GE is cutting 13,000 aviation related jobs.