Revenue at Berkshire Hathaway’s “other services” business, which includes NetJets and FlightSafety International, grew by 9.4 percent in the third quarter, to $2.235 billion, thanks in large part to higher sales of fractional aircraft shares at NetJets. In the first nine months, revenue was up by 10.5 percent, to $6.649 billion.
Pre-tax profits at the division climbed to $269 million in the third quarter and $802 million in the first nine months, representing 6-percent and 11.5-percent increases, respectively, according to Berkshire’s latest quarterly report. The rise in earnings was attributable partly to FlightSafety’s increased training revenues and “relatively unchanged” operating expenses.
During the third quarter, NetJets recorded higher impairment charges for aircraft value writedowns, which resulted in lower profits from a year ago. For the first nine months, NetJets’ earnings increased 4 percent “as improved flight operations margins, fractional sales margins and reduced net financing costs more than offset the increase in comparative third-quarter aircraft value impairment charges.”
In other NetJets news, the company officially opened its new dedicated passenger terminal building at Palm Beach Airport last week.