Airlines are rallying after Warren Buffett loads up

Airline stocks are outperforming the broader market on Wednesday after a 13-F filing showed that investing legend Warren Buffett plowed more money into the sector.

The filing, released after Tuesday’s closing bell, showed that Buffett’s Berkshire Hathaway spent $US2.15 billion on 43.2 million shares of Southwest Airlines in the last quarter of 2016. Additionally, Berkshire upped its stake in Delta Air Lines by 60 million shares, or 848% while also increasing its position in American Airlines.

Southwest and Delta both trade higher by about 2.2% while American lags with a 1.5% gain. The broader S&P 500 is little changed.

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