Jet.AI services, software revenues soar in third quarter
Jet.AI’s third-quarter earnings report revealed a 270% year-over-year increase in revenue from services and software to $3.37m, up from $1m in the same period last year.
However, overall revenue decreased by 72% year-over-year from $11.9m, mainly due to the absence of aircraft available for fractional sale in the third quarter of 2023 compared with two HondaJets sold in the same quarter of 2022.
Operating highlights showed that the company during the quarter entered in advanced discussions with Bombardier for the purchase of Challenger 3500 aircraft. Moreover, Jet.AI also launched AI-powered charter booking platform, CharterGPT.
“The third quarter saw the release of CharterGPT, the first AI charter broker, DynoFlight, the first carbon removal credit API for aviation, and the realisation of triple digit revenue growth adjusted for the fact that we had no aircraft inventory left to sell. Talks are in an advanced stage with Bombardier to supply us with the award-winning Challenger 3500 super-midsize aircraft for our fractional sales pipeline. From here it’s about delivering on the balance of our software roadmap and building the fleet,” said Mike Winston , executive chairman, Jet.AI.
“Based on numerous conversations with members of the trade at the NBAA trade show held in mid-October of this year, we now believe that our customers will adopt Reroute first before switching on other elements of our four-component operator platform. Reroute reconstitutes otherwise empty flights into new retail priced charter. With that in mind, we’re going to focus development resources on deepening the functionality of Reroute ahead of its release in December. The planned release of FlightClub and JetCardGPT are now expected to take place in the first quarter of 2024. We remain laser focused on rigorously balancing accretion and dilution as we look to deploy incremental capital at high rates of return both at the software level and into the fleet.”
Software application and on-fleet charter revenues soared 445% year-over-year to $1.8m. During the quarter, Jet.AI sold 122 prepaid flight hours under its jet card and fractional programs and recognised $0.7m of revenue for 113 flight hours flown. The on-demand private jet travel provider recorded deferred revenue of $1.2m.
In addition, the company also sold 50 prepaid flight hours, amounting to $273,000 and recognised $527,000 of revenue for 93 flight hours flown. The company said the increase in flight hours flown period over period is a direct result of the increase in its aircraft.
Cost of revenue increased from $0.7m in Q3 2022 to $1.8m in Q3 2023 due to increased fleet size, flight activity, and start-up costs.
The company recognised an operating loss of about $4.3m, which was an increase in loss of approximately $2.3m. The increase in operating loss was primarily due to the decrease in gross profit and the increase in general and administrative expenses resulting from the increase in non-cash stock-based compensation expense following the business combination.
Overall, this translated into loss-per-share of $0.61 versus loss of $0.45 in same quarter last year.
Jet.AI completed a business combination with special purpose acquisition company (SPAC) Oxbridge Acquisition Corp in August this year. The combined company has about $300m in cash on hand, which will be used to fuel Jet.AI’s growth initiatives.