NetJets Financial Winds Shift Favorably

 - November 13, 2006, 12:10 PM

The nine-month-old NetJets pilot contract, which raised wages substantially, isn’t having the speculated adverse effect on profits at the fractional provider. According to the second-quarter report released Friday by parent company Berkshire Hathaway, the flight services division–which includes FlightSafety and NetJets–posted a profit of $110 million in the second quarter and $131 million for the first six months, compared with $51 million for the second quarter and $58 million for the first six months of last year. Revenues from NetJets for the first six months increased $347 million, or 26 percent, over 2005, reflecting a 23-percent increase in flight operations and management service revenues and increased fractional aircraft sales. NetJets generated a pre-tax profit of $48 million for the second quarter and $29 million for the first six months, versus pre-tax losses of $1 million for the second quarter and $31 million for the first six months of last year.