Volato Group (SOAR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $15.1 million, up 16% year-over-year, driven by 28% growth in aircraft usage revenue and a 5% increase in total flight hours; blended yield rose 6% and demand mix shifted to 56% non-owner flights.

• Net loss for Q2 2024 was $16.9 million, including a $2.8 million non-cash charge; Adjusted EBITDA loss was $11.4 million, with sequential improvements due to cost-saving measures.

• Vaunt subscription platform reached $1 million in annual recurring revenue, expanding recurring revenue streams.

• Leadership team strengthened with two key hires and a new Gulfstream G280 fractional ownership program launched post-quarter.

• $4 million term loan secured post-quarter to support liquidity and growth.

Financial highlights

• Aircraft usage revenue was $12.5 million in Q2 2024; managed services revenue was $2.7 million.

• Recurring revenue grew 28% year-over-year; blended yield per flight hour rose to $5,330.

• SG&A expenses were $9.7 million, up from $6.1 million year-over-year, but down 17% sequentially.

• Net loss increased 72% year-over-year; Adjusted EBITDA loss increased 51% year-over-year.

• Ended Q2 2024 with $5.4 million in cash and equivalents; customer deposits and deferred revenue increased to $29.0 million.

Outlook and guidance

• Expect delivery of 10–12 new aircraft in 2024, including 8–10 HondaJets and two G280s.

• Projected 2024 revenue: $72–$90 million from HondaJet sales, $50 million from G280 sales; anticipated margins: $16–$20 million (HondaJet), $10–$14 million (G280).

• Gross margin from flight operations expected to turn positive in 2025; targeting EBITDA profitability by Q4 2024.

• Revenue growth in 2024 will depend on timing of plane deliveries and operational efficiencies.

• The company plans to fund operations through debt, equity, and aircraft sales.