flyExclusive revenue up, but losses soar in Q1

flyExclusive announced financial results for the first quarter of 2024, showing a complex financial picture as losses increased despite higher revenue.

flyExclusive operates through different customer models including memberships, fractional ownership, and partnerships.

On the revenue side, the company reported a 3.8% year-over-year increase to $79.9m, despite losing revenue from the termination of its partnership with Wheels Up.

This overall growth was driven by a significant boost in its jet club and other segment, which surged 47% to $74.4m. Additionally, the fractional ownership and maintenance, repair, and overhaul segments experienced substantial growth of 379% and 112%, respectively.

However, the company’s financial performance was overshadowed by a widening operating loss, which ballooned to $27.4m, a 226% increase compared to the same period last year. This was primarily due to increased costs in areas such as operations, sales, and administrative functions, despite a gain from aircraft sales. Consequently, flyExclusive’s pre-tax loss tripled to $32.9m.

The company’s cash burn also worsened, with operating activities consuming $25.9m in the quarter. As of March 31, 2024, the company’s cash and cash equivalents stood at $5.34m, nearly half than those at the end of 2023.

However, in order to meet liquidity challenges, the company, along with its results, also announced $25m preferred equity investment on August 8 , 2024 via EnTrust Global and EG Sponsor.