Volato revenues grow 16%YoY despite no deliveries in Q2

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Matk Ozenick appointment president of Volato Aircraft Management Services.

Private aviation company Volato announced its financial performance for the second quarter of 2024 wherein it reported increased flight hours and improved blended yield but challenges related to aircraft deliveries impacted overall profitability.

Total revenue for the quarter climbed 16% year-over-year to $15.1m, driven primarily by a 28% surge in aircraft usage revenue. This growth was attributed to a 5% increase in flight hours and a 6% improvement in blended yield. The company also noted a shift in demand towards higher-yielding non-owner flights, contributing to the overall revenue uplift.

The company did not receive any aircraft deliveries during the quarter due to supply chain issues same as the first quarter. However, subsequent to quarter end, took delivery of one HondaJet and one Gulfstream G280 as supply chain issues subside. The company expects delivery of 10-12 new aircraft during the ongoing fiscal year.

“Volato made significant progress with increased flight hours and improvements in blended yield in the second quarter. However, our ability to fully capitalise on our operational strengths was impacted by ongoing delays in plane deliveries. We are optimistic that as plane deliveries resume and are fully sold, our enhanced operations will help advance our path to profitability,” said Matt Liotta, co-founder and CEO at Volato.

Despite the positive operational metrics, Volato reported a net loss of $16.9m for the quarter, including a non-cash charge of $2.8m.

Adjusted EBITDA also reflected a loss of $11.4m. The company attributed these losses to the costs associated with being a publicly traded company and ongoing delays in aircraft deliveries.

The company ended the second quarter 2024 with $5.4m of cash, and cash equivalents. To address its financial position, Volato secured $4m in debt financing and implemented cost-saving measures.

“In addition to our positive operating results, after quarter end we strengthened our cash position and took delivery of several aircraft. Our fleet growth, in combination with the previously announced cost saving measures, should enable us to achieve positive EBITDA by the fourth quarter of 2024,” said Mark Heinen, CFO.

The company remains optimistic about its prospects, with plans to take delivery of additional aircraft and achieve positive EBITDA by the fourth quarter of 2024.

The company said that, to capitalise on the growing demand for private aviation, it has strengthened its leadership team, launched a fractional ownership program for the Gulfstream G280, and expanded its subscription platform, Vaunt.

While Volato’s operational performance in the second quarter showcased its potential, the impact of aircraft delivery delays has hindered its financial results. As the company addresses these challenges and expands its fleet, investors will be watching closely to see if Volato can successfully translate its operational strengths into sustained profitability.

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