September 4, 2024
Passenger Adjusted EBITDA moved into the black in Q2 2024 for Blade with the company forecasting continued Adjusted EBITDA profits.
Blade Urban Air Mobility, best known for its consumer private aviation segment, reported higher revenue, a smaller net loss, and improved adjusted EBITDA on the strength of its medical business.
Q2 revenue increased year-over-year by 11.4% to $67.9 million.
Net Loss improved by 7.4% to $11.3 million.
Adjusted EBITDA moved from a $4.4 million loss in Q2 2023 to a $958,000 profit.
The company said Adjusted Unallocated Corporate Expenses/Software was in the red by $5.3 million.
Passenger Adjusted EBITDA showed a $782,000 profit, reversing a $2.1 million loss.
However, Medical Adjusted EBITA showed a $5.5 million profit, up 82.7%.’
“This quarter marks Blade’s first Adjusted EBITDA positive Q2 as a public company with both the Medical and Passenger segments enjoying strong performance and contributing positive Segment Adjusted EBITDA in the quarter,” said Rob Wiesenthal, Blade’s Chief Executive Officer.
He added, “We are also pleased to see continued sequential growth in Medical as well as increasing adoption of Blade’s ground and organ placement offerings.”
Last year, the company suspended BladeOne by-the-seat flights.
The seasonal service operated between New York and South Florida.
“We’ve exited certain Passenger routes that didn’t meet our return thresholds, and we remain relentless in our pursuit of profitability in core markets that are showing growth by improving customer acquisition globally,” Wiesenthal noted.
Blade, however, didn’t abandon the market.
The company offered a guaranteed availability fixed-route rate jet card.
Private Jet Charter and Other Revenue increased 17.4% to $8.7 million in Q2 versus $7.4 million in the prior year, driven by charter and non-flight revenue growth.
This includes launching a new codeshare with Emirates to and from Monaco, opening two new terminals at Nice Airport, and opening a new heliport in Atlantic City at Ocean Casino.
In mid-July, Blade opened two new private passenger lounges in terminals 1 and 2 at Nice Côte d’Azur Airport.
A codeshare with Emirates also connects Monte Carlo and Dubai via Nice.
Travelers fly Emirates between Dubai and Nice.
They then transfer to Monaco via Blade helicopter.
Blade offers on return flights through check-in.
Passengers also benefit from private security.
In the U.S., Blade opened a rooftop helipad at the Ocean Casino Resort in Atlantic City, New Jersey.
Separately, Blade said it intends to exit its Canadian business by next year.
It is projecting total 2024 revenue of $240-$250 million and positive Adjusted EBITDA.
Looking towards next year, Blade expects double-digit growth in year-over-year revenue and double-digit Adjusted EBITDA.
Last week, Wheels Up reported its results, with executives touting increased contribution margin, improved operations, and strong sales despite continued losses.
Volato and Surf Air will announce their Q2 results on Wednesday.
FlyExclusive, which has yet to publish its Q1 financials, changed CFOs in June.
Jet.AI, the other publicly traded private flight provider, has made an announcement.
Blade and Wheels Up each went public via SPAC mergers in 2021.
Volato, FlyExclusive, and Jet.AI reached the public markets via SPAC IPOs last year.
Surf Air went public in 2023 via a direct listing.
By-the-seat provider SetJet had also announced a SPAC IPO but folded after several delays.
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