NetJets makes $158 million profit in first nine months of 2010
NetJets made a $158 million pre-tax profit in the first nine months of 2010 compared to a $531 million loss for the first three quarters of 2009.
Berkshire Hathaway, the fractional jet company’s owner, says NetJets’s revenues have risen by 17% over the first nine months compared to 2010.
It says customers were flying more although this was partly off-set by lower management fees and higher fuel costs.
“NetJets continues to own more aircraft than is required for present operations and we expect to continue to dispose selected aircraft over time,” said Berkshire in its third quarter 2010 report. “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.”
NetJets paid a $27 million guarantee fee to Berkshire during the first nine months of 2010 reflecting its outstanding commercial paper and other debt. If NetJets had paid this in 2009 it would have lost another $58 million.
The $531 million loss for the first three nine months of 2009 included $436 million of asset writedowns and redundancy costs.