November 14, 2024
Fractional and jet card Jet AI Q3 revenues increased to $3.9 million as net loss fell from $4.3 million to $2.9 million.
Jet AI (formerly Jet Token) saw Q3 revenues increase from $3.37 million to $3.92 million as net loss decreased from $4.29 million to $2.88 million.
For the first nine months, revenues increased from $8.04 million to $10.85 million.
Net loss declined slightly to $9.33 million from $9.46 million.
Chairman and CEO Mike Winston said, “We’re seeing strength across our business, with improvements in our key financial metrics both year-over-year and quarter-over-quarter.”
He added, “To make our earnings more predictable, we entered an agreement with Textron Aviation to purchase three Cessna Citation CJ4 jets, which will be delivered in stages—one each in the first, second, and fourth quarters of 2026. This order complements a proposed fleet deal with Bombardier for Challenger 3500 jets, which would be expected a year later in the first, second, and third quarters of 2027, respectively. Our plan is to pre-sell shares in fleet aircraft to customers before delivery, maintaining a ‘capital-light’ model in private aviation by reducing upfront costs.”
Winston continued, “We’ve authorized a share buyback, completed a reverse split, and pulled a Form S-1 due to its heavy warrant structure. On a related note, we also filed an S-3 as a continuation of our previously disclosed transaction with Ionic Ventures LLC. The Company now expects to regain compliance with NASDAQ’s listing standards by the November 26 deadline.”
Regarding its technology, Winston noted, “Over the next few quarters, we aim to develop CharterGPT into an AI agent that can handle both the customer-facing and backend aspects of the booking process independently, returning results without extensive human oversight.”
Software App and Cirrus Charter revenue, the gross amount of charters booked through CharterGPT and Cirrus, was $2.4 million, an increase of $0.5 million compared to last year.
Management and Other Services revenue, comprised of revenues generated from managing and chartering our customer aircraft, totaled $960,000 compared to $775,000 in the same period last year.
Jet Card and Fractional Programs revenue, generated from the sale and use of jet cards and service revenue related to ongoing utilization by fractional customers, totaled $547,000 compared to $732,000 in the same period last year.
Cost of revenues totaled $3.9 million compared to $3.2 million in the same period last year.
The increase is primarily due to the rise in Cirrus charter flight activity, aircraft operating costs, and payments to Cirrus for management.
The announcement added, “Gross loss totaled approximately $14,000 compared to a gross profit of $170,000 in the same period last year and gross loss of $417,000 in the prior quarter. The result was largely driven by reduced flights performed for the Company’s jet card customers without a corresponding reduction in fixed costs.”
As of September 30, 2024, Jet AI had cash and cash equivalents of approximately $312,000 compared to $528,000 as of June 30, 2024, and $2.5 million of cash and cash equivalents as of today.
Deferred revenue at the end of Q3 was $1.2 million.
Read the full Jet AI Q3 financials here: Jet AI Q3 2024 financials
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