Improvements in leases and flight hours helped boost revenue in 2019 at fractional ownership provider NetJets, but losses involving a government contract led to a decline in earnings at sister company FlightSafety International (FSI), parent company Berkshire Hathaway reported on Saturday.
Both NetJets and FSI are part of Berkshire Hathaway’s “services group,” which also includes quick-service restaurants (Dairy Queen), furniture leasing, media, and chemical businesses, among others. Berkshire Hathaway did not specify returns for the individual businesses in this group but did say NetJets’ revenues in 2019 contributed to a modest 1.2 percent year-over-year boost in the overall revenues for the group.
Berkshire Hathaway pointed specifically to the number of aircraft on lease, as well as flight hours in those increases. However, this was offset by fewer revenues via prepaid flight cards. Berkshire Hathaway also credited improved operational efficiencies as helping to boost overall earnings at NetJets last year.
As for FlightSafety, Berkshire Hathaway said the training provider contributed to revenue increases “to a lesser extent.” However, FSI posted a decline in earnings associated with “significant losses related to an existing government contract that were recorded in the fourth quarter.”
In all, pre-tax earnings were down 8.4 percent for the services group.