NetJets, FlightSafety See 11.8% Revenue Growth in Q1

Berkshire Hathaway’s aviation services businesses—NetJets and FlightSafety International—generated 11.8% year-over-year revenue growth in the first quarter, the conglomerate reported on Saturday. This increase was primarily due to the higher number of aircraft in shared ownership programs, and in-flight hours flown and higher average rates, at NetJets, according to Berkshire Hathaway’s latest earnings report.

“The increase in demand, in part, was attributed to customers responding to potential further price increases and supply chain concerns,” the report notes, “including extended inventory order lead times,” alluding to 12- to 36-month lead times for new-production business aircraft.

Aviation services contributed to the overall services group’s $941 million revenue increase in the quarter, though electronics distributor TTI was the primary driver with 26.2% growth. The services group—which also includes Dairy Queen and Business Wire—generated $6.43 billion in revenue in the first quarter, up from $5.49 billion in the same period a year ago. Services group pre-tax earnings increased $137 million (21.1%) YOY in the first quarter, reaching $785 million.

The earnings increase from aviation services was attributable to increased revenues, partially offset by higher flight crew and instructor costs, and higher maintenance, fuel, subcontract, and other variable costs. Aviation services contributed to the earnings increase but to a lesser extent than TTI, according to the report.