NetJets Poised for a Profitable Year?
If Berkshire Hathaway’s first-quarter results are any indication, its NetJets subsidiary will record a profit this year, which would be a reversal from $80 million in losses incurred by the fractional aircraft provider last year. The investment company’s flight services division, composed of NetJets and FlightSafety International, had $919 million in revenues in the first quarter–a $152 million, or 20 percent, increase over the same period last year. According to Berkshire, this was “primarily due to a 23-percent increase in revenues from NetJets,” as the result of a 19-percent rise in flight operations and management service fees and fewer outsourced flights. First-quarter revenues for training provider FlightSafety increased a more modest 7 percent over last year. Pre-tax first-quarter earnings of the flight services businesses totaled $21 million, versus $7 million last year. Meanwhile, NetJets Europe CEO William Kelly said yesterday that he expects his company to post an operating profit this year and be profitable next year.