September 15, 2024
Volato confirmed plans to continue taking delivery of HondaJets and Gulfstream G280s it has on order following last week’s deal with FlyExclusive.
In a press release, Volato expanded on what’s next after last week’s news of an agreement with FlyExclusive to take over flight operations.
The agreement, reported first by Private Jet Card Comparisons, allows Volato fractional and jet card customers to transition to new contracts with FlyExclusive.
In the release, Volato CEO Matt Liotta said, “We are excited about the potential of this agreement, which provides significant benefits to both Volato and FlyExclusive.”
He added, “By shifting fleet operations to FlyExclusive, we reduce our operational costs while continuing to focus on delivering value through our aircraft sales and expanding our software solutions, such as the Vaunt empty leg program.”
Plans call for Volato “to take delivery of new HondaJets and Gulfstream G280s, and these aircraft will become part of FlyExclusive’s managed fleet.”
The release says, “Volato will benefit from the margins on aircraft sales without the burden of operational costs while also generating revenue from its proprietary software, including the cash flow-positive Vaunt program, Volato’s successful empty leg consumer app.”
FlyExclusive will also add a portion of its empty-leg flights to Vaunt.
In the second quarter of 2024, Vaunt listed over 600 empty-leg flights.
The duo previously said adding FlyExclusive could increase the availability of empty legs by up to 500% of current levels.
The release notes, “Volato and FlyExclusive remain in discussions about a potential merger, which could further integrate the strengths of both companies and enhance their collective offerings in the private aviation sector.”
According to SEC filings, FlyExclusive has a 12-month option to buy the 2021 start-up that quickly grew to North America’s 17th-largest private jet charter/fractional.
FlyExclusive, which, like Volato, went public via a December 2023 SPAC merger, is the fifth-largest charter/fractional private jet operator.
Volato’s Net Loss increased from $17.4 million to $34.3 million in Q2 financials.
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.
FlyExclusive also saw red ink.
Revenue in the second quarter dropped from $100.3 million to 79.0 million year-over-year.
Net income from operations decreased from a $10.4 million profit a year ago to a $21.8 million loss.
Net income before taxes went from a $5.8 million profit to a $27.9 million loss.
Comprehensive net income attributable to FlyExclusive, Inc. went from a $7.5 million profit to a $5.2 million loss.
However, Chairman and CEO Jim Segrave said, “We have put all the pieces in place. We have the right team. We still need to execute.”
Segrave said FlyExclusive is continuing to phase out loss-making legacy aircraft, replacing them with more dependable new and recent vintage preowned jets.
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