Jet.AI reports $3.9m in revenue for Q3 2024
Private aviation and AI services provider Jet.AI announced financial results for the third quarter of 2024 reporting revenue of $3.9m, marking a significant increase of $0.5m year-over-year and $0.8m on a sequential basis.
This growth was primarily driven by additional service revenue from managing a second customer aircraft acquired in the second quarter of 2024.
“We’re seeing strength across our business, with improvements in our key financial metrics both year-over-year and quarter-over-quarter,” said Mike Winston, chairman and CEO, Jet.AI.
Segment wise breakdown showed the company booked $2.4m revenue from software app and Cirrus charter segment, an increase of $0.5m compared to the same period last year.
Meanwhile, management and other services revenue totalled $960,000 compared to $775,000 in the same period last year.
Jet Card and Fractional Programs revenue, which includes sale and use of jet cards and service revenue related to ongoing utilisation by the company’s fractional customers, declined to $547,000 compared to $732,000 in the same period last year.
The company has entered in an agreement with Textron Aviation to purchase three Cessna Citation CJ4 jets. The aircraft 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 added further.
While the company achieved revenue growth, it also reported a gross loss of approximately $14,000. This was primarily due to reduced jet card customer flights.
However, operating expenses decreased to $2.9m compared to $4.4m in the same period last year, leading to a reduced operating loss of $2.9m.
As of September 30, 2024, Jet.AI had $312,000 in cash and cash equivalents, which increased to $2.5m as of November 14, 2024.
In a stock filing on November 18, the company expressed confidence in regaining compliance with the Nasdaq stock exchange’s minimum stockholders’ equity requirement.
To meet the Nasdaq requirement, Jet.AI undertook several significant financial transactions including raising over $4m through the issuance of new shares of common stock to various institutional investors. These transactions, including deals with GEM Yield and Ionic Ventures, improved the company’s equity position.
Moreover, it also resolved outstanding debts worth over $2.4m by issuing shares of common stock to creditors, primarily Sunpeak Holdings Corporation.
