November 15, 2024
With no fractional shares to sell in 2023, Jet Token overall revenues dropped although other sales categories increased.
Jet Token, which now goes by Jet.AI, posted mixed results in 2023.
A quartet of private aviation flight providers that went public last year (with FlyExclusive, Volato, and Surf Air), the 2021 start-up saw revenues drop from $21.8 million to $12.2 million.
However, the decline came as sales of whole aircraft and fractional shares fell from $17.2 million in 2022 to zero a year ago.
The company plans to change that by launching a Challenger 3500 fractional program as soon as it can consummate a deal with Bombardier.
Revenues from its jet card and fractional programs increased from $2.3 million to $2.8 million.
Management and other services grew to $2.2 million from $400,000.
Software and charter flights via Cirrus Aviation, a third-party Part 135 operator, increased from $2 million to $7.1 million.
Software app revenue was $3.9 million in 2023, compared to $1 million in 2022.
Cirrus Charter revenue was $3.2 million in 2023, compared to $961,000 in 2022.
An increase in jet card sales sent deferred revenue from $436,331 to $933,361 last year.
Overall, prepaid flight hours sold increased from $2.3 million to $3 million year-over-year, a 31% jump on a 21.6% increase in flight hours.
The average cost of a flight hour sold in 2023 was $5,704, up from $5,291 per hour in 2022.
However, Jet Token faced significant cost increases across a spectrum of categories, including expenses for increased pilot turnover and longer wait times for pilot training.
READ: Why private aviation’s supply chain and labor crisis isn’t going away
The result was red ink:
‘As a result of all of the above, in 2023, the Company recognized an operating loss of approximately $12.5 million, which was an increase in loss of approximately $4.8 million over 2022. $2.1 million of this decrease is directly attributable to gross profit from fractionalization of our HondaJets in 2022 that did not recur in 2023. The remainder of the decrease, excluding non-cash compensation expenses, resulted from increased pilot wages and costs, increased subcharters, increased professional services expense from the Business Combination and higher D&O insurance costs.’
At the end of last year, Jet Token said it had $2.1 million in cash and equivalents, including approximately $500,000 of restricted cash under its aircraft leasing arrangements.
Chairman Mike Winston says the company also raised $16.5 in a convertible preferred.
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