Volato sees EBITDA profits by 2025 as it reports 2023 loss

Spurred by the delivery of fractional aircraft and increasing fleet usage, 2021 start-up Volato expects an EBITDA positive quarter by the beginning of 2025.

The fractional and jet card flight provider joined FlyExclusive, Jet.AI, and Surf Air with SPAC-based IPOs last year.

It began trading publicly under SOAR on the New York Stock Exchange last December.

Volato has grown quickly, and according to Argus TraqPak data, it entered our 2023 list of the Top 30 private jet charter and fractional operators in the 16th slot.

Volato fleet

It currently has 24 HondaJet very light jets in its fleet.

The current order book has 22 HondaJet IIs and four Gulfstream G280s to be delivered in 2024 and 2025.

CEO Matt Liotta told earnings call listeners earlier today that the company expects to receive eight to 10  VLJs and two to four G280s in 2024.

CFO Mark Heinen said the HondaJet deliveries are expected to generate $72-to-90 million in revenue this year and $16-to-20 million in margin.

The Gulfstreams will generate $50-to-$100 million in revenue and $10-to-$24 million in revenue.

Liotta, however, cautioned that the forecast risks supplier delays, although Heinen told analysts Volato pre-sells aircraft before delivery.

“We are in close contact with our suppliers and partners and understand that production and supply chain issues are easing, providing us with good visibility into our 2024 and 2025 delivery pipeline. We expect continued fleet expansion will propel revenue and margin in several ways, including increased fractional sales and operating revenue, and more efficient aircraft utilization,” Liotta said.

He added, “We remain focused on growth and our path to profitability.”

Volato 2024 financials

However, last year’s numbers were mainly in red, impacted by start-up costs and fewer aircraft deliveries.

Overall revenue dropped from $96.7 million to $73.3 million despite an increase in flight revenues from $14.4 million to $37.8 million.

Aircraft sales revenues fell from $67.7 million to $21.4 million for 2023.

Fractional operators don’t book sales on selling shares until they take delivery of the aircraft.

Fourth Quarter 2023 Financial Highlights

• Total revenue was $31.5 million
• Aircraft sales revenue was $15.7 million
• Aircraft usage revenue was $11.6 million
• Managed services revenue was $4.2 million
• Net loss was $23.6 million, including the impact of a $13.4 million non-cash charge
• Adjusted EBITDA1 was a loss of $8.1 million

Full Year 2023 Financial Highlights

• Total revenue was $73.3 million
• Aircraft sales revenue was $21.4 million
• Aircraft usage revenue was $37.8 million
• Managed services revenue was $14.1 million
• Net loss was $52.8 million, including the impact of a $13.4 million non-cash charge
• Adjusted EBITDA1 was a loss of $32.1 million

Volato ended 2024 with $14 million in cash.

Volato Q4 and FY 2023 Financials

Executives said that as it continues to scale up, it expects the “aircraft usage gross margin to turn positive over the next 12 months.”

It also said it is exploring additional financing to accelerate fleet growth.

In the call, Liotta said Volato stands to benefit from corporations’ trend of retreating from full ownership.

Volato’s fractional structure also decouples share from a fixed number of annual hours, providing a wider audience.

The company recently consolidated its jet card offerings and launched an empty-leg program under the Vaunt banner.

Volato’s stock was trading at $4.11 mid-morning after opening at $3.84.

It traded between $1.97 and $17 over the past 52 weeks.