flyExclusive takes over Volato’s customers, fleet

Kinston-based private jet charter firm flyExclusive entered into an aircraft management services (AMS) agreement with Volato agreeing to take in its customers and fleet as the two companies chalk out details of a potential merger.

Under the agreement, flyExclusive will manage flight operations, sales and expenses of Volato’s fleet, consisting of 13 fully fractionalised aircraft, eight leased aircraft and four managed aircraft. Volato will transfer aircraft to the flyExclusive certificate in coordination with the Federal Aviation Administration.

The company anticipates that Volato’s revenues, excluding aircraft sales, will transfer to flyExclusive at an estimated rate of approximately $75m per year.

“As a fully integrated operator, flyExclusive is well-positioned to offer synergistic value to Volato’s clients and deliver enhanced value for our overall growing customer base,” said Jim Segrave, founder and CEO, flyExclusive.

“Over the years, we’ve made strategic investments to remove industry bottlenecks and grow and maintain a leading, consistent customer experience. We’re proud to welcome Volato’s customers and look forward to offering them access to our growing fleet of light, midsize and super-midsize jets.”

Moreover, flyExclusive will execute the flights for Volato’s 184 fractional customers and 265 block customers on the Volato certificate, until they are moved over to FLYX agreements, in addition to Volato’s retail and wholesale business.

“flyExclusive is a proven operator with a robust platform and unwavering focus on the customer experience,” said Matt Liotta of Volato. “This agreement provides mutual benefit to both of our companies and, most importantly, our customers benefit by increased flight and service options with the reliable and high-quality service they have come to expect from best-in-class operators.”

Volato’s fractional agreements and block time customers will execute new agreements with flyExclusive to become the firm’s customers.

As part of the AMS, flyExclusive will have access to Volato’s technology through a software license agreement.

Volato recorded a substantial number of flight hours in 2023, with over 1,000 hours per month and a total of over 12,000 flight hours. This impressive performance highlights the company’s strong market presence and customer demand.

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

Volato reported adjusted EBITDA loss of $11.4m in the second quarter of 2024. 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.

Moreover, according to reports, Volato has laid off several of its employees as part of its restructuring to focus solely on its high-growth areas, including aircraft sales and proprietary software.