NetJets, FSI Provide Boost to Berkshire Hathaway Results

Berkshire Hathaway aviation services businesses—NetJets and FlightSafety International—have collectively experienced a 9.7% year-over-year (YOY) revenue increase through the first nine months, according to the investment giant.

Releasing its third-quarter results on Saturday, Berkshire Hathaway noted that this improvement helped boost its overall services group—which also includes Dairy Queen, Cort, and Business Wire, among others—to a $622 million revenue gain during the three-month period and $1.4 billion jump through the first nine months. Notably, Berkshire Hathaway cited an increase in aircraft ownership, flight hours, and average rates at NetJets for the climb in services revenues.

Likewise, Berkshire Hathaway in part credited increased profitability from its aviation businesses to a $109 million, or 19.2%, YOY rise in overall services group pre-tax earnings in the quarter. For the first nine months, earnings growth was 14.6%, or $262 million.

The aviation services' increased profitability is a direct result of higher revenues, Berkshire Hathaway reported. This was partially offset by higher flight crew, instructor, maintenance, and fuel costs, as well as depreciation expenses.