The airline stocks took a hit on Monday, but Warren Buffett selling out of airline stocks at the low was the type of move that causes a bottom. Delta Air Lines (DAL) has already raised plenty of cash to survive the severe downturn to passenger demand. My investment thesis remains bullish on the airline stock and the bounce of the lows was a bullish reversal.

Warren Buffett surprised everyone over the weekend in claiming to have sold nearly 10% positions in the four major airlines. Back in mid-March, Berkshire Hathaway (BRK.B, BRK.A) still had airline stakes worth over $9 billion led by the $3.6 billion stake in Delta. His firm had large positions in Southwest Airlines (LUV), United Airlines (UAL) and American Airlines Group (AAL).

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