May. 14. 2020

Warren Buffett’s Berkshire Hathaway Inc. dumped its shakes in the four largest U.S. airlines but the billionaire investor remains deeply exposed to the collapse in air travel.

Now the maker of jet-engine blades and aircraft structural components is facing a double whammy as the coronavirus pandemic all but erases demand for flights, prompting airlines to park jets and slash schedules.

That means less need for replacement parts and a big drop in aircraft purchasing. With carriers predicting that flying won’t return to 2019 levels for as long as three years, aerospace suppliers are hunkering down for a protracted slump.

Precision Castparts, with its advanced technologies for casting and forging metals, will remain a key cog in the aerospace supply chain. In addition to the robust defense business in aircraft parts, the company serves customers in the power and energy industries.

But with commercial air travel facing a long and uncertain recovery, Buffett’s bet on Precision Castparts will remain a drag on Berkshire for the foreseeable future.