NetJets Gains Traction, FSI Stumbles in Earnings

Coming off a solid 2017 with improved flight hours and increased aircraft management services returns, fractional ownership provider NetJets pulled in stronger earnings again in 2018, parent company Berkshire Hathaway reported. While Berkshire Hathaway doesn’t break down specifics of individual performance, it did say that the NetJets performance helped boost its Services Group results in 2018, overall. The Services Group comprises a variety of companies from training specialist FlightSafety International (FSI) to Dairy Queen, Cort Leasing, media companies, electronic components (TTI), and third-party logistics providers, among others.

The group’s earnings for the year jumped 20.9 percent to $1.8 billion. The bulk of the $317 million increase came from TTI. However, these gains offset a decline in earnings from fellow aviation company FSI, which faced reduced margins from sales of flight simulators and impairment charges of $41 million related to certain fixed assets, Berkshire Hathaway reported. FSI also had lower earnings in 2017, the parent company added.