Berkshire’s aviation services revenues, including NetJets, jumped 8.2% in the second quarter and 13.2% in the first six months of 2023 compared to 2022.
NetJets parent Berkshire Hathaway is reporting revenues for the Services group, which it is part of, increased by $444 million in the second quarter and $1.2 billion in the first six months of 2023 compared to 2022. Those gains reflected increases of 9.4% and 13.4%, respectively.
Revenues from aviation services increased 8.2% in the second quarter and 13.2% in the first six months of 2023 compared to 2022.
According to its quarterly report, “The revenue increases were primarily due to increases in the number of aircraft in shared aircraft ownership programs and in-flight hours across NetJets’ various programs, as well as higher average rates.”
Berkshire added, “The earnings increases were primarily attributable to higher overall margin rates in aviation services businesses, primarily due to a 17% year-to-date increase in average aircraft in the NetJets programs, changes in business mix, and the impact of the (insurance provider) IPS acquisition.”
During Berkshire’s annual meeting, NetJets and its CEO, Adam Johnson, drew praise from both CEO Warren Buffett and Vice Chairman Charlie Munger.
Munger told attendees, “NetJets has been remarkable. You can argue it’s worth as much as any airline now.”
Buffett noted, “It was a tough model for a long time, but (Johnson) has brought it where it is, and we should have a wonderful company forever.”
The Services group includes Dairy Queen and Flight Safety, among other companies.