On More Solid Footing, NetJets Posts $114M Profit
For the second quarter and first half of this year, fractional aircraft provider NetJets' revenues increased 16 percent and 17 percent, respectively, from a year ago, parent company Berkshire Hathaway said in its second-quarter results, released on Friday. These gains resulted from an increase in worldwide flight revenue hours, but were partially offset by lower management fees due to fewer aircraft in the NetJets program. NetJets reported pre-tax earnings of $114 million in the first six months, compared with a pre-tax loss of $349 million last year. The company attributed the improvement in earnings to the increase in revenues, as well as reductions in flight operations and administrative costs. Higher fuel costs partially offset these results. "NetJets continues to own more aircraft than [are] required for present operations and we expect to continue to dispose [of] selected aircraft over time," the report noted. "NetJets' operating cost structure has been reduced to better match customer demand, and we believe that NetJets will continue to operate profitably in the future," according to the Berkshire Hathaway report.