Southwest CEO says Warren Buffett is too pessimistic about airlines' future

Southwest CEO Gary Kelly says he understands why he just lost Warren Buffett as one of the airline's biggest shareholders. But he doesn't agree with Buffett's bearish view on the future of the US airline industry. Buffett disclosed Saturday that Berkshire Hathaway recently sold its entire stake in Southwest and the three other major US airlines because he believes it will take years for air travel to recover. "I don't think anybody knows, and certainly that's not an unreasonable view to take," Kelly said. "It's a pessimistic one. I am far more optimistic." Berkshire also disclosed a nearly $50b loss in Q1, greatly due to the drop in the value of its investments. All the airlines have reported losses in Q1 so far. Southwest reported its first quarterly operating loss in 11 years as demand for air travel plunged. All of the airlines are expecting even deeper losses in the current quarter. Kelly said he doesn't believe the industry is facing a prolonged decline in the demand for air travel. "I believe this too shall pass," he said. "You go back to the Spanish Flu in 1918, it was followed by the roaring 20's. Life will get back to normal. It is a question of how long that is going to take." Kelly said business and international travel will take longer to return to normal compared to domestic leisure travel. <br/>