In his annual letter to shareholders published early last month, investment mogul Warren Buffett said earnings improved last year at Berkshire Hathaway’s flight services division, which includes FlightSafety International (FSI) and NetJets. Last year the unit saw its pre-tax profits rise to $191 million on revenues of $3.24 billion, up substantially from the previous year’s $72 million profit on revenues of $2.43 billion.
The letter attributed more than 90 percent of the $810 million year-over-year revenue increase at Berkshire’s flight service division to NetJets. The fractional provider’s flight operations revenue rose by nearly $400 million and revenues from aircraft sales jumped about $360 million. According to Berkshire Hathaway’s annual report, the increase in flight operations revenue was due primarily to higher usage, a larger percentage of hours being on larger aircraft and a slight rate increase. Fractional aircraft share sales climbed due to an approximately 10-percent increase in aircraft sold and a higher percentage of sales being more expensive large-cabin business jets.
More In Charter & Fractional
