A recent investor presentation from Volato sheds light on the company’s operations and roadmap to profitability. Management is confident that with current cash reserves and projected sales for 2024, Volato has the necessary funds to achieve profitability, although a specific timeline was not disclosed.
Volato anticipates receiving nine to 12 new aircraft deliveries this year, a significant increase from the three deliveries in the previous year. The company’s plans include acquiring eight to 10 HondaJet Elite IIs and one or two Gulfstream G280s in the latter half of the year, surpassing the initial expectation of four super-midsize jets for 2024.
Revenue projections from fractional sales and management fees range from million to 5 million, with an expected margin of million to million. However, revenue from fractional sales can only be recognized upon aircraft delivery, highlighting the impact of OEM delays on the company’s financial results.
With 29 aircraft currently in its fleet and 26 on order, Volato expects its orders to account for 35% of HondaJet production until 2026. The company, established in 2021, already ranks as the 6th largest U.S. light/very light jet operator.
Volato’s unique ownership structure, which grants fractional owners a share of their aircraft’s revenue, incentivizes owners to purchase more shares than necessary for their flights. This surplus capacity enables Volato to offer on-demand charters and jet cards, contributing to an increase in non-owner flights from 9% to 48% in Q4 of 2023. The company projects non-owner flights to constitute 63% of revenue legs, generating ,500 per hour compared to ,700 per hour for owners.
Financially, Volato forecasts .3 million in revenue for 2023, down from .6 million in the previous year. While delayed deliveries affected aircraft transaction revenue, recurring revenue from usage and management fees saw an uptick.
Volato also revealed plans to expand its fleet with additional HondaJets and expressed interest in acquiring Honda’s upcoming long-range light jet, the Echelon. Following its December SPAC IPO, the company is yet to announce a date for the release of Q4 earnings.
For more details, refer to the full presentation of the Volato Group SOAR Investor Presentation February 2024.
