“It’s clear Buffett wants to put some of his cash to work, and it wouldn’t be surprising if he bought any of those major names. He certainly could afford any of them,” the team at U.S. Global Investors pointed out in a recent note.

While the airline industry has been grounded for many years, the industry recently enjoyed a stretch of profitability, fueled by the recent decline in oil prices and record number of travelers in a stronger economic environment.

Nevertheless, Buffett warned that this market segment is still open to risks, especially through internecine strife among competitors.

“The industry was suicidally competitive for decades,” Buffett said. Now “it could turn into fierce competitive battles that wipe out earnings or it can be a business that’s more decent but still subject to lots of competition. It’s really hard to know for sure how it will develop. It’s not risk-free.”

For more information on the airline ETF, visit our Airline category.