Jet It is planning to launch a fractional ownership program with Embraer, adding the Phenom 300 and Praetor 500, according to a presentation and correspondence reviewed by Private Jet Card Comparisons.
The company has already added a landing page on its website promoting the Phenom 300, although it is yet to make a formal announcement.
Jet It has been having discussions with owners about moving to the larger type over the past several weeks.
Glenn Gonzalez, Founder and CEO of Jet It, confirmed adding the Embraer platform, saying, “We are expanding the fleet to meet the needs of our shareowners.”
Last year, Jet It added the Gulfstream G150 to its fleet.
The Greensboro, North Carolina fractional operator expects its HondaJet fractional fleet to go from 25 aircraft to just 12 by next year.
HondaJet will remain an important part of the overall future fleet, according to Gonzalez.
Jet It plans to have 10 HA-420s “owned for dedicated charter,” which means a fleet of 22 of the VLJs moving forward.
At the same time, it is taking delivery of its first two Phenom 300s in 2022, with plans to have 10 by next year and 35 of the light jets by 2025.
Jet It expects to have two Praetor 500s in 2023, with nine by 2025.
At that point, its total fleet will be 22 of Honda’s VLJs, two Gulfstream G150s, and 44 aircraft from Embraer, giving it a fleet of 68 jets.
Last year, the company had revenues of $85.6 million, something it expects to jump this year to $120 million.
The 2018 startup is projecting revenues to double in 2023 to $281.6 million before growing to $565.1 million in 2025.
The private jet company had a net loss of $2.6 million in 2021, a deficit that it forecasts will grow to $23.2 million this year.
However, the undated correspondence suggests 2022 performance is being hampered by available capacity: “HondaJet availability over the last four months has been less than 50%, greatly challenging our business. Needless to say, business operations to support 120% demand with only 50% of required inventory is extremely difficult. Therefore, the need to diversify the fleet and transition to a new platform.”
Jet It expects to deliver a profit of $25.7 million in 2023 before growing earnings to $86 million in 2025.
The correspondence adds, “With demand at an all-time high, we are anxious to transition our fleet and operations to a new product line of Embraer aircraft. The Phenom 300 and Praetor 500 are proven to have airline-like aircraft availability and reliability, which will allow Jet It to return our innovative business model to the profitability observed in previous years.”
Gonzalez declined to comment further.
Correspondence noted the first Phenom 300 “has successfully completed all inspections and will arrive into the U.S. on 17 October. It is expected that the aircraft will be completely sold out before it arrives.”
Jet It is also planning to launch an online “tech-enabled” marketplace to fill unused capacity.
The company expects on-fleet charter revenue to grow from $13.2 million this year to $196.9 million in 2025.
According to a presentation, Jet It currently has 165 owners and over 200 employees.