Fleet and Operations - As of June 30, 2024, the company had a fleet of 93 aircraft, including light, midsize, super-midsize, and large jets[158]. - 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[168]. - Average aircraft on certificate grew from 93 in June 2023 to 98 in June 2024, indicating a 5.4% increase[177]. Revenue and Financial Performance - The company generated revenue through various programs, including a jet club membership program, which requires a minimum deposit of $0.1 million and a maximum of $0.5 million[159]. - The Guaranteed Revenue Program (GRP) ended in June 2023, resulting in no anticipated future revenue from this program, which previously accounted for a significant portion of revenue[165]. - The termination of the GRP Agreement is expected to have a material impact on financial statements beyond 2023 until the company can replace the lost revenue[167]. - Revenue decreased by $18,385 thousand, or 10.4%, from $177,370 thousand in the six months ended June 30, 2023, to $158,985 thousand in 2024[190]. - Jet club and charter revenue increased by $40.1 million, or 37.5%, to $146.9 million for the six months ended June 30, 2024 compared to the same period in 2023[191]. - Guaranteed revenue program (GRP) revenue decreased by $66.9 million, or 100%, to $0 due to the termination of the WUP agreement on June 30, 2023[191]. - Fractional ownership revenue increased by $6.5 million, or 360.7%, for the six months ended June 30, 2024, driven by fractional membership growth[192]. - Maintenance, repair, and overhaul revenue increased by $1.9 million, or 105.5%, for the six months ended June 30, 2024 due to increased external services[192]. - Total revenue for the three months ended June 30, 2024 was $79.0 million, a decrease of $21.3% compared to $100.3 million for the same period in 2023[196]. Expenses and Losses - Cost of revenue increased by $16,715 thousand, or 12.8%, from $130,274 thousand in 2023 to $146,989 thousand in 2024[190]. - Selling, general and administrative expenses rose by $12,188 thousand, or 35.3%, from $34,485 thousand in 2023 to $46,673 thousand in 2024[190]. - Net income for the six months ended June 30, 2024, was $(60,844) thousand, compared to $(5,881) thousand for the same period in 2023, representing a significant decline[175]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(35,485) thousand, compared to $20,296 thousand in 2023[175]. - Net loss attributable to flyExclusive, Inc. was $5.2 million for the three months ended June 30, 2024, compared to a net income of $7.5 million for the same period in 2023, representing a decrease of 168.3%[196]. Membership and Usage - Active members increased from 631 in June 2023 to 723 in June 2024, reflecting a growth of 14.6%[177]. - Members contributing to revenues rose from 639 in June 2023 to 816 in June 2024, an increase of 27.8%[177]. - Total flight hours increased from 28,118 in June 2023 to 32,770 in June 2024, a rise of 16.5%[177]. - Jet club and charter flight hours increased by 61.1% for the six months ended June 30, 2024, despite a 14.6% decrease in effective hourly rates[191]. Cash Flow and Financing - As of June 30, 2024, the company had $9.3 million in cash and cash equivalents, $69.4 million in short-term investments, and $4.4 million available borrowing capacity under the 2018 Term Loan[204]. - The company anticipates cash requirements for the next 12 months to be approximately $121.6 million, including accounts payable of $30.7 million and short-term notes payable of $28.5 million[213]. - Net cash used in operating activities for the six months ended June 30, 2024, was $42.2 million, resulting from a net loss of $60.8 million[217]. - The company issued $15.7 million in senior secured notes in December 2023, with a stated rate of 14% and maturing in December 2024[208]. - The company entered into a long-term promissory note agreement with a principal amount of $13.9 million in March 2024, bearing a fixed interest rate of 9.45%[209]. - The company raised approximately $25 million through the issuance of 25,000 shares of Series A Non-Convertible Redeemable Preferred Stock in March 2024[212]. - Net cash provided by financing activities for the six months ended June 30, 2024 was $36.4 million, up from $13.8 million in the same period of 2023, primarily due to proceeds from debt of $71.4 million[220]. Asset Management - The company recorded proceeds from the sale of property and equipment of $23.7 million and investments of $44.5 million during the first half of 2024[218]. - The company incurred purchases of property and equipment totaling $28.1 million and engine overhauls of $9.8 million in the first half of 2024[218]. - The company has maintained a working capital deficit, with current liabilities exceeding current assets, primarily due to deferred revenue related to prepaid flights[204]. Risks and Legal Matters - The principal market risks for the company include interest rates and aircraft fuel costs, with no material changes reported since the last annual report[230]. - The company is involved in various litigation matters but believes that outcomes will not materially affect its financial position[221]. Regulatory and Reporting - The company continues to rely on the JOBS Act provisions, which allow for reduced reporting requirements as an emerging growth company[227]. - The company determined that its warrants should be classified as liabilities, impacting the financial statements due to fair value adjustments[222].
flyExclusive(FLYX) - 2024 Q2 - Quarterly Report