Berkshire Hathaway’s first-quarterly report of 2024 showed that revenues from its service group, which includes fractional-share operator NetJets and training provider FlightSafety International, declined $168 million or 3.2 percent year-over-year (YOY). However, that decline was mostly due to TTI, an electronic components distributor. The service group’s aviation segment saw revenues grow by 8.6% YOY.
During the first quarter, the revenue increase for aviation "was primarily due to increases in the number of aircraft in shared aircraft ownership programs and an increase in flight hours across NetJets’ various programs, as well as higher average rates,” according to the Berkshire Hathaway Form 10-Q report.
Pre-tax earnings for the service group declined $246 million (29.4%) YOY in the first quarter. Part of that decline was due to a 10.3% drop in aviation services earnings. “The decline in aviation service earnings was primarily attributable to increased maintenance and personnel costs, which reduced the overall margin rates,” the company said.
Although NetJets and the pilot union NetJets Association of Shared Aircraft Pilots ratified a tentative agreement on higher salary and benefit levels, this wouldn’t have affected the first-quarter earnings because the higher salaries didn’t take effect until May 1.