While the COVID-19 pandemic dealt a significant blow to commercial airlines with a sharp decline in travel, it unexpectedly ushered in a private jet travel boom for those with the means to indulge. Surprisingly, this trend continues to flourish, even as commercial jet travel makes a comeback. Berkshire Hathaway’s NetJets, a prominent player in the private aviation industry, has reported impressive revenue growth, with an 8.3% increase in the third quarter and an 11.5% rise in the first nine months of 2023 compared to the same period in 2022.
The surge in revenues can be attributed to several factors, including the expansion of shared aircraft ownership programs and a year-to-date surge in flight hours across NetJets’ diverse programs, all accompanied by higher average rates.
Notably, NetJets has been actively expanding its capacity, aiming to capitalize on the booming demand for private jet travel. In a significant move, the company joined forces with Textron Aviation in September, signing a record-breaking fleet agreement. This agreement grants NetJets the option to purchase up to 1,500 additional Cessna Citation business jets over the next 15 years. It extends NetJets’ existing fleet agreement and includes provisions for an increasing number of aircraft each year.
The surge in NetJets’ revenues paints a clear picture of the growing popularity of private jet travel. As travelers seek the flexibility, privacy, and safety that private aviation offers, companies like NetJets are poised for continued success. Even as commercial airlines make their comeback, the private jet industry is flying high, proving that luxury and convenience are increasingly becoming a top priority for those who can afford it.
© 2023 David Mazor
David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.