FlyExclusive Reports $21.1 Million Net Loss for 2024, Revenue Increases 3.8%

FlyExclusive, Inc. reported a net loss of $21.1 million for the year ended December 31, 2024, compared to a net loss of $46.8 million in 2023. Revenue increased slightly by 3.8% to $327.3 million, driven primarily by a 24.3% surge in jet club and charter revenue to $295.5 million, and a 275.7% increase in fractional ownership revenue to $22.7 million. The increase in jet club and charter revenue resulted from a 36% increase in flight hours, partially offset by a decrease in effective hourly rates. Conversely, guaranteed revenue program revenue decreased by 100% to $0 due to the termination of a major agreement with Wheels Up in June 2023. The company also generated $1.9 million in aircraft management services revenue from a new agreement with Volato Group, Inc. beginning in September 2024.

Costs and expenses increased significantly by 16.3% to $410.1 million, primarily due to a 9.9% rise in cost of revenue and a 21.1% increase in selling, general, and administrative expenses. The increase in cost of revenue was attributed to higher salaries and wages, aircraft lease expenses, aircraft repair and maintenance, and affiliate lift expenses, partially offset by a decrease in aircraft IT and Wi-Fi expenses. The rise in selling, general, and administrative expenses was mainly due to increased insurance and personnel-related expenses. Depreciation and amortization expenses decreased slightly by 4.7%, while losses (gains) on aircraft held for sale increased significantly by 120.1% due to fleet modernization efforts.

Significant strategic developments during the fiscal year included the launch of the company's MRO (maintenance, repair, and overhaul) operation in 2021, the introduction of a fractional ownership program in 2022, and the signing of an aircraft purchase agreement for up to 14 additional aircraft in 2022. In September 2024, the company entered into an aircraft management services agreement with Volato Group, Inc., managing flight operations, sales, and expenses of Volato's fleet. The company also experienced significant growth in its jet club membership, with 1,195 members contributing to revenue in 2024 compared to 948 in 2023. The company's fleet size increased to 103 aircraft in 2024 from 102 in 2023, including 14 aircraft operated under the Volato agreement.

The company's key operating metrics showed improvements in several areas, including total flight hours, which increased to 66,606 in 2024 from 55,518 in 2023. Total hours per aircraft also increased to 660.9 from 579.3, indicating improved operational efficiency. The company maintained a low customer-to-aircraft ratio, with 10.5 members per aircraft in 2024 compared to 9.1 in 2023. The company noted that 98.3% of its customers were served using its own fleet in the fourth quarter of 2024. The company also highlighted its efforts to increase in-house maintenance capabilities, aiming to transition from approximately 20% in-house maintenance to a targeted 80%.

The company's outlook is positive, with expectations for revenue growth driven by fleet expansion and membership growth. However, the company acknowledged several risk factors, including the potential for decreased demand for private aviation services, competition, pilot availability and attrition, and the impact of fuel costs. The company also highlighted risks related to its indebtedness, governmental regulations, and cybersecurity threats. The company stated that it does not anticipate declaring any cash dividends in the foreseeable future.