Jet.AI losses widen in Q2

Private jet travel services provider Jet.AI announced its financial results for the second quarter ended June 30th, 2024 reporting significant expansion of its loss.
Revenues for the second quarter of 2024 totalled $3.1m, $0.3m higher from same period last year attributable to additional management agreement for customer aircraft, increased chartering of the company’s Citation CJ4, and software-related revenue, although offset by a decline in jet card-related activities due to seasonality.
The company sold 55 prepaid flight hours under its jet card and fractional programs during the quarter, generating $319,000 in revenue. Additionally, $616,000 was recognized for flight hours flown or forfeited, along with additional charges.
Cost of revenues climbed to $3.5m in the second quarter from $3m in the prior year primarily driven by the operation of an additional aircraft, increased charter activity, and higher aircraft lease payments. During the three months under review, Jet.AI operated three HondaJets, one CJ4 and, in addition to the CJ4, managed a King Air 350i.
Consequently, the company reported a gross loss of $417,000 for the second quarter of 2024.
Operating expenses surged by approximately $556,000 year-over-year to $3.2m, primarily due to a $548,000 increase in general and administrative expenses on account of higher professional service fees, particularly legal expenses related to SEC filings and transactions, as well as increased wages due to expanded headcount.
Higher costs resulted in a net loss of $3.2m for the second quarter of 2024, representing an $0.8m deterioration compared to the previous year.
This translated into loss per share of $0.25 compared to $0.54 in the previous quarter. The lower LPS, despite higher net loss in absolute terms, was due to a three-fold increase in company’s average weighted shares outstanding compared to same period last year.