WICHITA — Corporate profits in the U.S. hit a new record in the second quarter, at $1.94 trillion (annualized). That is up 8.5 percent from the second quarter of 2010. Companies have done spectacularly well in the recovery – profits were up 9 percent in 2009 and up 32 percent 2010.
Profits in the past were one of the most important signals of future business for corporate jet sales. Why not this time? It could be a simple lag before executives feel comfortable with buying. It could be that executives still feel insecure financially and are stockpiling money for a future recession (profit growth is slowing). Or, it may mean executives are feeling a little embarrassed to be seen buying jets when they’re not hiring workers.