Fleet and Operations - As of March 31, 2024, the company operates a fleet of 100 aircraft, including light, midsize, super-midsize, and large jets[160] - The company began a fleet modernization process in Q4 2023, planning to sell older aircraft and replace them with newer models over the next two years[169] - Average aircraft on certificate increased to 101 in March 2024, compared to 92 in March 2023, indicating a growth of 9.8%[178] - The company experienced significant volatility in pilot attrition rates, which could adversely affect operations and financial results[165] Revenue and Financial Performance - Revenue for the three months ended March 31, 2024, was $79,972,000, a 3.8% increase from $77,032,000 in the same period of 2023[194] - Total revenue for the three months ended March 31, 2024, was $79.972 million, an increase of $2.94 million, or 4%, compared to the same period in 2023[195] - Jet club and charter revenue increased by $23.9 million, or 47%, to $74.4 million for the three months ended March 31, 2024, compared to the same period in 2023[195] - Guaranteed revenue program revenue decreased by $25.0 million, or 100%, to $0 due to the termination of the WUP agreement on June 30, 2023[196] - Fractional ownership revenue increased by $3.2 million, or 379%, for the three months ended March 31, 2024, attributed to fractional membership growth[196] - Maintenance, repair, and overhaul revenue increased by $0.8 million, or 112%, for the three months ended March 31, 2024, due to increased external services[196] - Net loss for the three months ended March 31, 2024, was $32,990,000, compared to a net loss of $11,706,000 for the same period in 2023, representing an increase in loss of 181.4%[194] - Loss from operations for the three months ended March 31, 2024, was $27,425,000, compared to a loss of $8,401,000 in the same period of 2023, reflecting a significant increase in operational losses[194] Costs and Expenses - Total costs and expenses increased by 25.7% to $107,397,000 for the three months ended March 31, 2024, compared to $85,433,000 in 2023[194] - Cost of revenue rose by 13.9% to $74,234,000 in Q1 2024, up from $65,190,000 in Q1 2023[194] - Selling, general and administrative expenses surged by 58.1% to $25,183,000 in Q1 2024, compared to $15,931,000 in Q1 2023[194] - Cost of revenue increased by $9.0 million, or 14%, primarily due to increases in salaries, aircraft lease, and maintenance expenses[196] - Selling, general and administrative expenses increased by $9.3 million, or 58%, primarily due to higher personnel-related expenses and professional fees[196] Membership and Flight Activity - Active members increased to 515 in March 2024, up from 438 in March 2023, reflecting a growth of 17.6%[178] - Members contributing to revenues rose to 791 in March 2024, compared to 608 in March 2023, marking a 30.1% increase[178] - Total flight hours for the three months ended March 31, 2024, were 16,284, an increase from 13,929 hours in the same period of 2023, representing a growth of 16.9%[178] Cash Flow and Financing - As of March 31, 2024, the company had $5.3 million in cash and cash equivalents and $71.4 million in short-term investments[199] - Net cash used in operating activities for Q1 2024 was $26.0 million, resulting from a net loss of $33.0 million and a $10.8 million decrease in operating assets and liabilities[212] - Net cash used in investing activities for Q1 2024 was $30.1 million, primarily due to property and equipment purchases of $38.5 million and engine overhauls of $2.7 million[213] - Net cash provided by financing activities for Q1 2024 was $49.8 million, mainly from debt proceeds of $39.1 million and preferred equity issuance of $24.2 million[214] - The company issued $15.7 million in senior secured notes due in December 2024 to fund aircraft purchases[203] - The company anticipates cash expenditures of approximately $124.4 million over the next 12 months, including accounts payable of $32.1 million and short-term debt principal payments of $24.9 million[208] Future Outlook and Strategic Initiatives - The company expects revenue growth over time due to fleet expansion and forecasted membership growth[196] - The company views private aviation increasingly as a health-conscious decision post-COVID-19, which may lead to increased flight demand over time[170] - The company has maintained a positive relationship with debtholders and expects to secure necessary refinancing based on historical experience and current creditworthiness[208] - The company plans to settle accounts payable and accrued expenses using a combination of operational cash flow, investment sales, and potential borrowing[208] Legal and Market Risks - The company is involved in various litigation matters but believes that outcomes will not materially affect its financial position[216] - The company has not experienced any material changes in market risks related to interest rates and aircraft fuel costs[224] - As of March 31, 2024, the company has classified 25,000 shares of Series A Preferred Stock as temporary equity due to certain redemption rights[219] Employee Retention and Credits - As of March 31, 2024, the company applied for $9.5 million and received $9.0 million of the Employee Retention Credit (ERC)[173]
flyExclusive(FLYX) - 2024 Q1 - Quarterly Report