August 12, 2025
The nation’s fifth-largest private jet operator was able to cut net and EBITDA losses as revenue grew 15.2% year-over-year in Q2.
FlyExclusive saw revenue increase from $79.0 million to $91.3 million in the second quarter on a year-over-year basis, a 15.2% gain.
For the year, revenues were up to $179.5 million from $158.9 million in the first six months of 2024, a 13.0% increase.
The nation’s fifth-largest operator, based on fractional and charter hours, cut its loss from operations to $12.4 million from $21.8 million a year ago during Q2.
First-half loss from operations dropped from $49.3 million to $27.1 million.
Adjusted EBITDA loss also narrowed in the quarter, from $16.0 million to $5.2 million.
Adjusted EBITDAR loss, which excludes aircraft lease costs, dropped to just $296,000 from $11.4 million in Q2 of 2024.
(Download the full SEC filing at the end of this article)
Speaking to investors, Chairman and CEO Jim Segrave called the performance “another strong quarter.”
Fleet modernization continues to be a key factor.
Per Segrave:
‘Our fleet modernization, which continues to be a significant driver of our EBITDA improvement We have reduced our non-performing aircraft to just 13, down from 37 when we launched the initiative to remove them last year We expect the remaining pool of non-performing aircraft to be in the mid-single digits by year-end And to that end, we have already eliminated two more of these aircraft since the end of the second quarter and a third is under contract On the other side of that equation, we now have five Challenger 350s in operation and will add the sixth in the next few weeks as it completes the conformity process with the FAA It will contribute to third quarter revenue and gross profit starting later this month By year-end, we expect FlyExclusive to have a fleet of Challengers in the low double digits.’
Segrave told analysts the Bombardier jets have “substantially reduced mechanical disruptions.”
He praised the Canadian OEM’s super-midsize jet, adding:
‘The Challenger has approximately 2.5 times better uptime efficiency compared to the underperforming much older Gulfstream and Citation super-mid fleet we’ve been eliminating And every 1% improvement in our fleet-wide availability equates to approximately $3 million in EBITDA improvement At peak, our underperforming fleet had an annual run-rate EBITDA drag near $36 million That impact is now less than $500,000 per month Better yet, each Challenger added to the fleet, represents annual revenue in the $8-10 million range and at margins that well exceed our fleet average.’
While aircraft generating revenue was down from 96 to 86 tails, flight hours were up 9% year-to-date.
Gross profit year-to-date increased 109% to $25 million.
Flight revenue increased 12%, while MRO revenue jumped 24% and there was an 89% gain in fractional revenues.
Jet Club sales increased 26.5% year-over-year in the quarter, while retail members were up 9% on the same basis.
Segrave told the call:
‘Our charter flight hours grew 12% year-over-year and 7% quarter-over-quarter to 18,605 hours, which speaks to the continued improved efficiency of a fleet that now totals 86 revenue generating jets, down by design and plan, from 96 a year ago, and 108 at our peak Let me say that another way – we flew 12% more total flight hours as a company with 10% fewer total aircraft comparing 2Q 2024 to 2Q 2025 We also generated 16% more revenue on 10 fewer jets and 119% more gross profit – an incredible overall performance improvement Of the flight hours flown during the quarter, our membership hours, which come from the fractional, Club and partner programs also increased 32% compared to Q2 2024.’
Other highlights, he said, include:
‘Strong demand continues for our fractional program We saw a 21% increase year-over-year in the number of fractional shares sold during the quarter and our pipeline is stronger than ever We also believe the clarity on bonus depreciation tax treatment will be a very positive catalyst for activity over the back half of 2025 – which is always our strongest sales period historically Comparing the 2nd quarter to the same quarter last year – retail members were up 9%, retail sales were up 26% and fractional sales were up 24% Also, as a reminder, while we recognize 100% of the cash from these fractional transactions upfront, only 20% of the revenue under GAAP is recognized per year on our P&L statement – over a five-year period.’
CFO Brad Garner pointed to strong sales for both its fractional program and jet card.
Garner said fractional and Jet Club active membership grew to a combined 1,077 owners and members.
That represents a 32% increase year over year.
The fractional program saw a 54% increase in the number of owners.
Jet Club membership increased 8% year-over-year.
Garner also addressed the delay in consummating its merger with Jet AI’s aviation division.
He said, “We continue to work through the merger administrative process, having recently filed an amended S-4 and anticipate closing that transaction in the coming months.”
He added, “The Jet AI merger will not only capitalize on our operational synergies with Jet AI’s aviation operations but also provide growth capital as we continue to execute on our aggressive growth plan.”
Regarding the delay in its inclusion in the Russell 2000, Garner explained, “The lock-up restriction on EG Sponsor, LLC’s common shares and warrants acquired during the de-SPAC process prevented our inclusion in the Russell indices for the June 30th inclusion date.”
He believes, “Effective in July, the company waived the lock-up, which we believe now makes the company eligible for consideration for inclusion in the Russell indices.”
Per its SEC filing, FlyExclusive had $15.8 million in cash and cash equivalents at the end of the quarter.
It added, “The Company believes its cash and cash equivalents on hand, operating cash flows, and proceeds from the fractional program will be sufficient to fund operations, including capital expenditure requirements, for at least 12 months from the issuance date of these financial statements.
Garner told the analysts, “We have a wide number of profit drivers that are all trending positively and exceeding our base case scenario plans.”
DOWNLOAD: FLYEXCLUSIVE-FINANCIALS-2025-Q2
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