Berkshire's NetJets, FlightSafety Soar in First Quarter

 - May 9, 2023, 10:54 AM
(Photo: Barry Ambrose/AIN)

First-quarter revenues at aircraft fractional provider NetJets and aviation simulation training company FlightSafety International (FSI) climbed 18.8 percent year-over-year, said parent company Berkshire Hathaway in its latest investor update. The higher revenues these companies reported were “primarily due to increases in the number of aircraft in shared aircraft ownership programs and in flight hours across NetJets’ various programs, as well as higher average rates,” Berkshire noted in its first-quarter financial report.

Berkshire’s services group—which besides NetJets and FSI includes electronics components company TTI and Dairy Queen, among others—reported a 17.6 percent rise in first-quarter revenues, to $5.319 billion, compared with the same period a year ago. While Berkshire doesn’t specify revenues of each of its services subsidiary companies, it implied that slightly more than half of the $796 million increase was attributable to NetJets and, to some extent, FlightSafety.

Pre-tax first-quarter earnings at the parent company’s services group was $837 million, up $113 million from last year. “The earnings increase was primarily attributable to higher overall margin rates in aviation services businesses, primarily due to changes in business mix,” Berkshire said.