2015 Revenues Climb, Profits Fall at NetJets

Revenues last year at Berkshire Hathaway’s services segment, which includes NetJets and FlightSafety International, increased by $347 million, or 3.5 percent, year-over-year, according to figures released by the parent company on Saturday. This includes a 5-percent jump in NetJets’ revenues thanks to a 50-percent rise in aircraft sales.

That increase at the fractional aircraft provider was partially offset by weaker operations revenue, due primarily to lower fuel cost recoveries ($189 million) and “unfavorable foreign currency effects” ($105 million), Berkshire said.

Pre-tax profits at the services division fell $46 million, to $1.156 billion, compared with 2014. Earnings declined at NetJets as the effect of higher aircraft sales margins was more than offset by increased personnel, outsource chartering and maintenance expenses. According to Berkshire, “A portion of the increase in personnel costs pertained to lump-sum payments made in connection with a collective bargaining agreement reached with our pilots in the fourth quarter.” These contract signing bonuses were equal to $150 per month of service, up to a $30,000 maximum.