Jet Token, now Jet.AI, is negotiating to add Challenger 3500s to its fractional fleet, according to its Q3 2023 earnings update.
Newly publicly traded Jet.AI, formerly Jet Token, saw its revenues fall and losses increase in Q3. It also said it is negotiating with Bombardier for Challenger 3500s to be added to its HondaJet fractional fleet.
Revenues decreased in Q3 from $11.9 million in 2022 to $3.4 million in 2023.
Year-to-date revenues dropped from $19.7 million to $8.0 million.
Net Loss for Q3 went from $2.0 million last year to $4.3 million.
Net Loss increased from $4.8 million for the first nine months to $9.5 million.
However, the top line number was impacted by fractional sales.
In a press release accompanying the earnings report, Jet.AI noted, “Revenue unrelated to Fractional/Whole Aircraft Sales was $3.4 million, up $2.5 million, or over 270% compared to $910,000 in the same period last year.”
It continued, “The decrease was primarily due to the absence of aircraft available for fractional sale in 2023 compared with the successful fractionalization of the company’s last two HondaJets during the third quarter of 2022, offset by additional service revenue of $775,000 arising from the company entering into an agreement to manage a customer’s aircraft in the fourth quarter of 2022.”
Jet Card and Fractional Programs revenue, which is generated from the sale and use of jet cards and service revenue related to ongoing utilization by our fractional customers, totaled $732,000, up 29% when compared to $568,000 during Q3.
Year-to-date Jet Card and Fractional Programs revenue increased to $2.1 million from $1.4 million.
According to its filing, during the first nine months of 2023, Jet.AI sold 383 prepaid flight hours under its jet card and fractional programs.
That compared to 354 hours in 2022 for the same period.
At the end of September 2023, Jet Token had deferred revenue of $1.2 million, representing prepaid flight hours for which the related travel had not yet occurred.
Jet.AI Executive Chairman Mike Winston also revealed it plans to offer Bombardier’s Challenger 3500 for fractional ownership.
He said, “Talks are in an advanced stage with Bombardier to supply us with the award-winning Challenger 3500 super-midsize aircraft for our fractional sales pipeline.”
The company is also expanding into software and B2B.
TheJet.AI operator platform offers a suite of stand-alone software products to enable charter providers to add revenue, maximize efficiency, and reduce environmental impact.
Its aviation segment features jet aircraft fractions, jet cards, on-fleet charter, management, and buyer’s brokerage.