Press release·03/24/2025 21:23:39

Overview of flyExclusive’s Financial Performance

flyExclusive is a leading private aviation company that provides a range of services including private jet charters, fractional ownership, and aircraft maintenance. The company has seen mixed financial results in recent years, with some areas of growth offset by challenges in others.

In 2024, flyExclusive reported total revenue of $327 million, up 3.8% from the prior year. This increase was driven by growth in the company’s jet club and fractional ownership programs, which offset the loss of revenue from the termination of its Guaranteed Revenue Program (GRP) agreement with Wheels Up in June 2023.

However, the company also reported a net loss of $101 million in 2024, significantly higher than the $55 million net loss in 2023. This was due to a combination of factors, including higher costs of revenue, increased selling and administrative expenses, and losses on aircraft sales as part of the company’s fleet modernization efforts.

Revenue and Profit Trends

flyExclusive has a diversified business model that generates revenue from several key areas:

• Jet club memberships: Customers pay upfront deposits and monthly fees in exchange for guaranteed access to the company’s fleet of private jets. Jet club revenue grew 24% in 2024.

• Fractional ownership: Customers can purchase a fractional stake in an aircraft, giving them the right to use the plane for a set number of hours. Fractional ownership revenue increased 276% in 2024.

• Maintenance, repair, and overhaul (MRO) services: flyExclusive provides maintenance and repair services to third-party aircraft owners, which saw a 56% revenue increase in 2024.

• Aircraft management services: In 2024, the company began providing management services for aircraft owned by third parties, generating $1.9 million in new revenue.

The termination of the GRP agreement with Wheels Up was a significant setback, as this program had accounted for a large portion of the company’s total revenue in 2022 and 2023. However, flyExclusive was able to partially offset this loss through growth in its other business lines.

On the profitability side, flyExclusive has struggled to translate its revenue growth into consistent profits. The company’s net loss widened significantly in 2024 due to higher costs, including:

• A 10% increase in cost of revenue, driven by higher salaries, maintenance expenses, and affiliate lift costs.
• A 21% increase in selling, general, and administrative expenses, largely due to insurance and personnel costs.
• Losses of $2.8 million on aircraft sales as part of the fleet modernization program.

These factors more than offset the company’s revenue growth, leading to the substantial net loss in 2024.

Strengths and Weaknesses

One of flyExclusive’s key strengths is its diversified business model, which generates revenue from multiple sources beyond just private jet charters. The growth in fractional ownership, MRO services, and aircraft management demonstrates the company’s ability to expand into adjacent areas and reduce its reliance on any single revenue stream.

Additionally, the company’s focus on fleet modernization and improving the customer experience through newer aircraft could give it a competitive edge. By offering a more modern and efficient fleet, flyExclusive may be able to attract and retain customers more effectively than rivals with older aircraft.

However, the company’s financial performance has been inconsistent, with significant net losses in both 2024 and 2023. The termination of the GRP agreement was a major setback, and flyExclusive has struggled to fully replace that lost revenue. The company’s high costs, particularly in areas like selling and administrative expenses, have also weighed on profitability.

Another potential weakness is the company’s reliance on debt financing to fund aircraft purchases and other investments. As of the end of 2024, flyExclusive had $67.3 million in variable-rate debt, which exposes it to interest rate risk. The company will need to carefully manage its debt load and financing costs to maintain financial stability.

Outlook and Future Prospects

Looking ahead, flyExclusive faces both opportunities and challenges. On the positive side, the company’s focus on growing its jet club, fractional ownership, and MRO service lines could pay off if it can continue to attract new customers and expand these higher-margin business units.

The aircraft management services agreement with Volato also represents a new revenue stream that could contribute to the company’s top line. And if flyExclusive is successful in modernizing its fleet and improving the customer experience, it may be able to command higher prices and margins.

However, the company will need to address its cost structure and profitability issues to achieve sustainable success. Reducing selling and administrative expenses, improving operational efficiency, and managing its debt load will all be critical priorities.

Additionally, the private aviation industry remains highly competitive, with flyExclusive facing rivalry from both established players and new entrants. The company’s ability to differentiate its offerings, maintain high customer satisfaction, and adapt to changing market conditions will be key to its long-term prospects.

Overall, flyExclusive has demonstrated the ability to grow its revenue through diversification, but it must now focus on improving its bottom-line performance to deliver consistent profitability for shareholders. The company’s success in navigating the challenges ahead will be crucial in determining its future trajectory.