NetJets Predicting Profitable 2010

 - May 26, 2010, 10:06 AM

Berkshire Hathaway’s first-quarter financial report notes that revenues at its NetJets subsidiary grew by 18 percent year-over-year, generating positive pre-tax earnings of $57 million versus a pre-tax loss of $96 million in the same period last year. The growth in revenue was aided by a 7-percent increase in worldwide flight revenue hours and higher fuel cost surcharges, in addition to “a decline of about $50 million in aircraft impairment and inventory valuation charges compared to the first quarter of 2009.” NetJets also continues to “own more aircraft than required for present operations and we expect to continue to dispose of selected aircraft over time.” The fractional firm’s operating cost structure has been reduced to better match customer demand, however, “And we continue to believe that NetJets will operate profitably in the future.”