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Berkshire Hathaway’s services division, which includes NetJets and FlightSafety International, reported that revenues increased by half a percentage point in the fourth quarter to $20.7 billion. The services group also includes electronic components distributor TTI, Dairy Queen, and logistics company XTRA.
Aviation services revenue shined in the group, increasing 9.1% year over year (YOY) in 2024, according to the company's just-released financial report. This gain was attributed to an increased number of aircraft in NetJets' shared ownership programs versus 2023, as well as an increase in flight hours.
However, margins in the services businesses continued a downward trend, at 11.1% in 2024, shrinking 3.4 percentage points from 2023 after a decrease from 16% in 2022. Pre-tax profits declined 23% YOY, which Berkshire Hathaway attributed in part to a 51% decline in TTI earnings due to lower sales and increased expenses.
While revenues were up, “earnings from aviation services declined 10.9% in 2024 versus 2023, primarily attributable to increased costs of services and leasing, driven by higher flight crew [costs], maintenance, fuel costs, and depreciation expense, as well as increased impairment charges,” the report notes.