Losses Mount for NetJets in Second Quarter

 - August 11, 2009, 12:21 PM

Fractional aircraft provider NetJets’ second-quarter revenues fell 43 percent year-over-year to $550 million, and for the first half dropped $1.024 billion–or 42 percent–from the same six-month period last year. According to parent company Berkshire Hathaway, NetJets’ declines reflected an 81-percent dive in aircraft sales and a 22-percent reduction in flight operations revenues “primarily due to lower flight revenue hours.” NetJets reported pre-tax losses of $253 million for the second quarter and $349 million for the first six months, compared with gains of $192 million and $255 million, respectively, in the same time frames last year. Further, Berkshire said that NetJets owns more airplanes than it requires for its present level of operations “and further downsizing will be required unless demand rebounds.” NetJets founder and now former chairman and CEO Richard Santulli left the company last Tuesday, just three days before Berkshire released its second-quarter results.