Former Jet Token, now Jet.AI, will focus on larger aircraft, a national jet card program, and technology as it pivots from its HondaJet roots.
Fractional, jet card and tech platform Jet.AI, formerly Jet Token, saw revenues grow by $291,076 to $3.1 million in Q2 2024, a 10.4% year-over-year gain.
In H1, the top line increased from $4.7 million to $6.9 million.
For the Q2 2024 Software App and Cirrus Charter revenue, the gross amount of charters booked through CharterGPT and Cirrus, Jet.AI’s operating partner, was $1.6 million.
Management and Other Services revenue, which is comprised of revenues generated from managing and chartering customer aircraft, more than doubled to $914,000 compared to $423,000 in the same period last year.
Jet Card and Fractional Programs revenue was $559,000 compared to $811,000 in the same period last year.
Cost of revenues totaled $3.5 million compared to $3.0 million year-over-year.
Jet.AI said those costs were related to aircraft operation and payments to Cirrus for their management.
The gross loss increased to $417,000 compared to $201,000 in the same period last year.
The increase was primarily driven by reduced flights performed for jet card customers without a corresponding reduction in fixed costs.
Operating expenses totaled $2.8 million compared to $2.2 million year-over-year.
In its earnings release, Jet.AI attributed the increase to general and administrative expenses and research and development costs, which were offset by lower sales and marketing expenses.
Operating loss was $3.2 million, up from $2.4 million in the same period last year.
As of June 30, 2024, the Company had cash and cash equivalents of approximately $528,000 compared to $595,555 as of March 31, 2024.
Jet.AI previously said it intends to launch a Challenger 3500 fractional program.
“In the second quarter, we made significant progress in our anticipated fleet deal with Bombardier, as we announced a non-binding, non-recourse debt financing arrangement, alongside securing $16.5 million in financing from Ionic Ventures LLC,” said Founder and Executive Chairman Mike Winston.
Winston added, “Additionally, we successfully completed the warrant exchange offer, eliminating potentially dilutive warrant overhang and simplifying our capital structure.”
The top executive also noted, “We received an unsolicited bid for one of our HondaJets at a price that would imply a net economic benefit compared to its continued use in the fleet and so have entered into a contract to sell it as part of our gradual reorientation of the fleet toward the higher margin Challenger 3500 aircraft.”
Jet Token launched with plans to focus on the VLJ.
The former Jet Token recently launched a national jet card.
Winston said, “We separately have made several advancements on our software business, including the implementation of Reroute AI for our jet card holders offering empty leg benefits, and the launch of our enhanced DynoFlight 2.0 platform, which integrates AI and synced fleet data with our partner, FL3XX. These two solutions, along with CharterGPT, continue to attract market interest. We remain cautiously optimistic and look forward to announcing further news on our proposed fleet deal.”
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