September 23, 2024
Flexjet financial filings in the UK show the fractional operator increasing revenues and cutting losses.
Flexjet’s UK company increased turnover by 7% in 2023 as it narrowed losses.
According to financial filings, the unit increased its top line to GPB 40.9 million, equal to US$53.7 million at current exchange rates.
Loss dipped from GBP 15.4 million to GBP 13.9 million.
However, the results, reported in the British media, don’t give a complete picture of Flexjet, Inc.’s European presence.
A spokesperson tells Private Jet Card Comparisons, “This filing is only a partial reflection of our European business as it shows just our UK company performance and doesn’t include our Maltese company.”
She says, “Revenues from the UK company represent only around a third of our overall European revenues, with our Maltese company doubling in revenues and profitability in 2023, compared with the previous year.”
The spokesperson adds, “[L]osses for the UK company are reducing and are in line with our growth-focused strategy – backed by our longstanding and profitable US parent group. Indeed, currently, the UK company bears the majority of our European infrastructure and staff costs, such as the considerable investment in our larger Mayfair sales premises.”
Flexjet launched its European fractional program in 2020.
In the filing, Flexjet said, “Its reputation for high-end jet services requires (the company) to keep on investing in its development before it expects to see profitability.”
It termed the losses as “expected.”
The filing showed a 100% increase in the upload of Sustainable Aviation Fuel.
It expects to reach its SAF target of 12% by 2030.
Its on-demand charter and jet card broker, PrivateFly, has yet to file its 2023 results.
In its most recent full-year filing from Dec. 2023, PrivateFly’s FY 2022 sales jumped from GBP 46.8 million in 2021 to GBP 60.2 million.
That filing revealed the pressure on fixed-rate jet card programs.
It noted that while sales exploded due to COVID-19 demand, margins were under pressure as the cost of buying flights for brokers also surged.
It adjusted terms and added a fuel surcharge, which “was understood by the majority of the group’s clients.”
The 2022 report noted that the “margin was still positive…but much below the expected result.”
The cost pressure meant PrivateFly “had to sometimes carry a loss on flights.”
Flexjet has not published overall financials since announcing a now-shelved IPO in 2021.
The company had forecast revenues of $2.3 billion in 2022 with an Adjusted EBITDA of $288 million.
In 2021, it reported an Adjusted EBITDA of $183.9 million and net profit of $52.9 million.
According to Berkshire Hathaway’s financial filings, rival NetJets’ operating profits were hit by higher costs in H1 2024.
It blamed higher labor, maintenance, fuel costs, and higher depreciation.
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