Volato Group, Inc. (NYSE American: SOAR) (“Volato” or the “Company”) announced its financial results for the third quarter ending September 30, 2024. The report showcases initial achievements under a newly launched turnaround strategy designed to build a robust foundation for sustainable growth.
- Total Revenue: $40.3 million
- Aircraft Sales: $38.2 million
- Managed Services: $1.8 million
- Software Subscriptions: $0.3 million
- Net Loss: $1.3 million
- Adjusted EBITDA: $3.2 million (a non-GAAP measure)
- Vaunt Annual Recurring Revenue (ARR): $1.5 million
Strategic Developments and Early Progress
- Aircraft Sales Growth:
- Delivered two HondaJets and the first Gulfstream G280 during Q3.
- Partnership with flyExclusive:
- Entered an agreement with flyExclusive to manage fleet operations, enabling Volato to prioritize high-growth sectors such as aircraft sales and software development.
- The transition is expected to complete in Q4 2024, reducing overhead costs and enhancing operational focus.
- Cost Reduction Initiatives:
- Achieved a 75% reduction in SG&A expenses, lowering the quarterly run rate to $0.7 million.
- Vaunt Platform Expansion:
- The digital subscription platform reached $1.5 million in ARR, demonstrating growing adoption among travelers.
- Added flyExclusive flights to the Vaunt platform post-Q3, expanding service options.
Operational Highlights
Volato transferred customer relationships for fleet operations to flyExclusive, reducing Insider Card deposit liabilities by $4.1 million in Q3, with further reductions anticipated in Q4.
Expansion of Mission Control Software
Initially developed for Volato’s internal operations, Mission Control software gained recognition from one of the aviation industry’s largest operators. This milestone validates its adaptability and underscores its potential as a leading solution for other operators facing similar operational challenges.