Berkshire Hathaway’s aviation services businesses, which includes NetJets and FlightSafety International, saw revenues rise 10.4% year over year (YOY) in the second quarter and 9.5% in the first six months, but still resulted in an earnings dip.
In its 10-Q report for the second quarter, Berkshire Hathaway cited several factors for the aviation services' revenue gains, including increases in aircraft in the fractional programs and flight hours across NetJets’ programs and training hours at FlightSafety. In addition, Berkshire Hathaway credited higher average rates across those programs for helping boost revenues.
At the same time though, the investment giant reported that earnings from aviation services dropped by 8% YOY in the second quarter and 9.1% in the first six months. For these results, Berkshire Hathaway pointed to increased maintenance, personnel, fuel, and depreciation expenses.
NetJets and FlightSafety are the largest businesses in Berkshire Hathaway’s broader services group, which also includes companies such as Dairy Queen, Cort, and the electronics distributor TTI, among others. The aviation services business revenues helped lead to a $30 million increase in the second quarter for the larger group and buffered the overall decline in the first half, which amounted to $138 million, Berkshire Hathaway reported.
NetJets' activity continues to strengthen, with departures up 13% YOY last month and 44% above 2019 levels, according to Jefferies and WingX data.