Newly public FlyExclusive says the revolving credit will be used ‘to support the continued evolution’ of its fractional ownership program.
FlyExclusive has entered into a two-year revolving credit facility for up to $25.8 million, according to a press release.
Proceeds from the agreement with ETG FE, LLC will be used “to support the continued evolution of the company’s fractional aircraft program.”
Last month, the nation’s fifth-largest fractional/charter operator became publicly traded following its merger with EG Acquisition Corp., a SPAC sponsored by EnTrust Global and GMF Capital.
“We believe this facility is a strong vote of confidence in FlyExclusive’s strategy and continued initiatives to increase growth and profitability,” said Jim Segrave, CEO of the fractional and jet card operator.
He added, “We look forward to the continued partnership with ETG FE LLC and EnTrust Global, and believe this facility marks an important milestone in our journey to provide customers with the highest level of comfort, safety, and quality.”
According to its most recent investor presentation, FlyExclusive expects 11% of its 2024 flight revenues to come via its fractional program.
Its jet card, Jet Club, is forecast to be 33% of revenues this year.
Partners lease their airplanes to the operator. They then can access the fleet similarly to jet cards and fractional owners. Partners are expected to be 6% of revenues.
Fifty percent of revenues are forecast via the wholesale market.
Projections from October show FlyExclusive’s fleet growing to 128 aircraft.
Fly Exclusive’s first fractional order in April 2022 was for up to 30 CJ3+ light aircraft.
In October 2022, FlyExclusive added up to 14 midsize and super-midsize Cessna Citation business jets.
That included eight XLS Gen2 aircraft and six Longitude aircraft.
However, supply chain issues have been delaying deliveries from OEMs, so it’s not sure how many aircraft FlyExclusive will add this year.
A spokesperson said there were no updates on the delivery schedule or conversion of options to firm orders.
She said the facility announced today that it is related to its current program.
