Berkshire’s NetJets, FlightSafety Climbing Again
NetJets accounted for more than a third of the revenue increase at Berkshire Hathaway’s “other service” businesses last year, according to the parent company’s year-end results released on Saturday. The division, which also includes FlightSafety International and several other non-aviation companies, saw revenues climb by $821 million, to $9 billion, with NetJets’ share rising by $288 million–up 7.5 percent year-over-year–thanks to higher sales of fractional aircraft shares.
Pre-tax earnings at the division rose by $130 million from 2012, totaling $1.1 billion last year. Berkshire said this increase was attributable primarily to FlightSafety and NetJets, as well as electrical components firm TTI and BH Media.
In fact, FlightSafety’s earnings rose 11 percent last year, “reflecting increased training revenues and relatively unchanged operating expenses.” Meanwhile, NetJets’ earnings grew by 7 percent “as improved flight operations margins, fractional sales margins and reduced net financing costs more than offset the increase in comparative aircraft value impairment charges.”
This is a marked improvement for the two aviation companies, as earnings at NetJets and FlightSafety in 2012 were relatively unchanged from 2011, Berkshire said.