November 15, 2024
After going public via SPAC merger in December Volato is pointing to aircraft delivery delays and IPO costs hitting its bottom line.
Volato Q2 revenues increased from $13.0 to $15.1 million year-over-year, with the fractional and jet card company saying delayed deliveries of new jets impacted the top line.
At the same time, the net loss increased from $9.9 million to $16.9 million, with the company blaming increased expenses for going public, the cost of scaling its business, more marketing spending, and the delay in receiving both HondaJets and Gulfstream G280s.
Adjusted EBITDA Loss increased from $7.6 million to $11.4 million in the quarter
Since the beginning of July, Volato has received one of each type.
For H1 2024, revenues were down from $28.7 million to $28.3 million.
Net Loss increased from $17.4 million to $34.3 million.
Adjusted negative EBITDA was $24.5 million for the six months ended June 30, 2024, compared to adjusted negative EBITDA of $14.3 million for the same period last year.
Volato ended H1 2024 ranked as the 17th-largest charter/fractional operator in North America, with flight activity up 11.1% per Argus.
|
Three Months Ended |
|
||
|
|
June 30, 2024 |
June 30, 2023 |
Change YoY |
|
Revenue: |
Dollars (000) |
Dollars (000) |
% |
|
Aircraft sales |
0 |
0 |
– |
|
Aircraft Usage |
12,457 |
9,717 |
28% |
|
Managed aircraft |
2,674 |
3,298 |
(19%) |
|
Total Revenue |
15,131 |
13,015 |
16% |
|
Net Loss |
(16,918) |
(9,862) |
72% |
|
Adjusted EBITDA |
(11,436) |
(7,585) |
51% |
“Volato made significant progress with increased flight hours and improvements in blended yield in the second quarter. However, our ability to fully capitalize on our operational strengths was impacted by ongoing delays in plane deliveries. We are optimistic that as plane deliveries resume and are fully sold, our enhanced operations will help advance our path to profitability,” CEO Matt Liotta said in announcing the Q2 results.
Mark Heinen, Chief Financial Officer, added, “In addition to our positive operating results, after quarter end, we strengthened our cash position and took delivery of several aircraft. Our fleet growth, in combination with the previously announced cost-saving measures, should enable us to achieve positive EBITDA by the fourth quarter of 2024.”
Cash decreased from $6.4 million at the end of Q1 2024 to $5.4 million at the end of Q2.
After Q2 ended, Volato said it had signed a $4 million term loan to enhance its cash position while awaiting delivery of additional aircraft
The company had previously said it expects to receive two of its four G280s and eight to 10 HondaJets in the second half of 2024.
Volato noted, “On a sequential basis, second-quarter net loss declined 2.7% when compared with first-quarter net loss due to the cost savings measures implemented during the quarter, offset by a $2.8 million non-cash charge related to the fair value of our forward purchase agreement.”
The company added, “Excluding the impact of the non-cash charge, second-quarter net loss declined 17.5% when compared to first-quarter net loss. Second quarter Adjusted EBITDA loss declined 12.7% when compared to the first quarter Adjusted EBITDA loss as a result of the cost savings measures implemented during the quarter.”
Last month, Volato published additional Q2 operating and service
Volato stock was trading at 49 cents early this afternoon. Over the past 52 weeks, its price has ranged from 37 cents to $17.
Read the full SEC filing of Volato’s Q2 financials here.
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