Fleet and Operations - As of September 30, 2024, the company operates a fleet of 88 aircraft, including light, midsize, super-midsize, and large jets[166] - The company plans to modernize its fleet over the next two years, selling older aircraft and replacing them with newer models to enhance availability and efficiency[175] - The company entered into a twelve-month Aircraft Management Services Agreement with Volato Group, managing a fleet of 25 aircraft[169] - Total flight hours increased to 48,862 for the nine months ended September 30, 2024, up from 40,561 hours in the same period of 2023, demonstrating growth in operational activity[186] - The total number of aircraft operated increased to 113 as of September 30, 2024, from 100 in the same period of 2023, reflecting fleet expansion efforts[184] - Ending aircraft on certificate decreased to 88 as of September 30, 2024, down from 100 in the previous year, suggesting a need for strategic fleet management[184] - The average aircraft on certificate increased to 104 for the nine months ended September 30, 2024, from 94 in the same period of 2023, indicating improved fleet utilization[186] Financial Performance - Adjusted EBITDA for the nine months ended September 30, 2024, was $(45,746) thousand, compared to $13,081 thousand for the same period in 2023, indicating a significant decline in operating performance[182] - The net loss for the nine months ended September 30, 2024, was $(84,980) thousand, compared to $(30,451) thousand for the same period in 2023, reflecting increased financial challenges[182] - Revenue for the nine months ended September 30, 2024, was $235.9 million, a decrease of $3.5 million or 1.5% compared to $239.4 million for the same period in 2023[200] - Jet club and charter revenue increased by $50.3 million, or 30.3%, to $216.5 million for the nine months ended September 30, 2024, driven by a 47% increase in flight hours[201] - 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[202] - Total costs and expenses for the nine months ended September 30, 2024, increased by $52.8 million, or 20.9%, to $306.1 million compared to $253.3 million in 2023[200] - Net loss attributable to flyExclusive, Inc. for the nine months ended September 30, 2024, was $17.3 million, a decrease of $6.4 million or 27.1% compared to a net loss of $23.7 million in 2023[200] - Loss from operations for the nine months ended September 30, 2024, was $70.2 million, compared to a loss of $13.9 million in 2023, representing an increase of $56.3 million or 406.1%[200] Membership and Engagement - The company generated revenue from its jet club membership program, with new members paying deposits ranging from $0.1 million to $0.5 million[166] - Active members rose to 854 as of September 30, 2024, compared to 747 in the previous year, indicating a positive trend in membership engagement[186] - Members contributing to revenues increased to 1,005 for the nine months ended September 30, 2024, compared to 836 in the same period of 2023, highlighting growth in revenue-generating memberships[186] Cash Flow and Financing - As of September 30, 2024, the company had $18.7 million in cash and cash equivalents and $61.4 million in short-term investments[215] - The company has a working capital deficit, with current liabilities exceeding current assets, common in the private aviation industry[215] - The company anticipates cash expenditures of approximately $177.4 million over the next 12 months, including $81.4 million in long-term debt principal payments and $14.7 million in lease payments[225] - Net cash used in operating activities for the nine months ended September 30, 2024 was $54.4 million, resulting from a net loss of $85.0 million[227] - Net cash provided by investing activities for the nine months ended September 30, 2024 was $22.1 million, primarily due to proceeds from the sale of property and equipment of $28.5 million[229] - Net cash provided by financing activities for the nine months ended September 30, 2024 was $39.4 million, primarily from proceeds of $71.4 million in debt[230] - The company issued 25,000 shares of Series A Non-Convertible Redeemable Preferred Stock at a purchase price of $1,000 per share, raising approximately $25 million[222] - The company issued 25,510 shares of Series B Convertible Preferred Stock and received gross proceeds of approximately $25.5 million[222] Market and Competition - The company faces competition from various private aviation operators and luxury commercial airline services, impacting market share and pricing strategies[171] - Pilot attrition has been volatile, affecting operational capacity and financial results, with challenges in hiring and retaining qualified pilots[173] Accounting and Compliance - The Company determined that Series A Penny Warrants, Public Warrants, and Private Placement Warrants must be classified as liabilities, while Series B Penny Warrants are classified as permanent equity[235] - 25,000 shares of Series A Preferred Stock and 25,510 shares of Series B Preferred Stock are presented as temporary equity at redemption value due to certain redemption rights[236] - The Company recognizes gains or losses from aircraft sales upon completion of the sale, with aircraft held for sale recorded at the lower of carrying value or fair value less costs to sell[237] - The Company is exposed to market risks primarily related to interest rates and aircraft fuel costs, with no material changes reported since the last annual report[241] - The Company has elected to use the extended transition period for complying with new accounting standards as an "emerging growth company" under the JOBS Act[240] - The Company’s financial statements may not be comparable to those of companies that comply with new accounting pronouncements as of public company effective dates[240]
flyExclusive(FLYX) - 2024 Q3 - Quarterly Report