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.
NetJets Poised for a Profitable Year?
- November 21, 2006, 6:24 AM