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Path Forward

In the third quarter of 2024, Volato initiated the transition of its Fleet Operations to flyExclusive, with the transition anticipated to conclude in the fourth quarter of 2024. As part of this process, customer relationships have been transferred from Volato to flyExclusive to ensure continuity and quality of service. This resulted in the reduction of Insider Card deposit liability of $4.1 million in the third quarter of 2024 and is expected to be even greater in the fourth quarter of 2024.

As part of its turnaround, Volato is broadening the reach of its proprietary software, Mission Control, originally built specifically to support Volato’s operations as a large-scale operator. Now chosen by one of the industry’s largest operators, Mission Control has proven its flexibility and effectiveness in addressing varied operational needs. This choice over existing commercial software underscores a significant gap in the market—most available software doesn’t meet the specialized requirements of large operators, leaving only a few with the capacity to create custom solutions.

This adoption by a top-tier operator not only confirms Mission Control’s adaptability but also serves as a proof of concept for broader industry use. Volato aims to extend Mission Control to other operators who need a strong, adaptable management solution, positioning it as a leading choice in aviation software.

Company Commentary

Matt Liotta, Co-Founder and Chief Executive Officer of Volato, commented, "The third quarter marks the first phase of our turnaround plan. By transitioning operational responsibilities to flyExclusive, we’re able to focus on our strengths in aircraft sales and software development, areas that we believe offer significant growth potential. While we are encouraged by these early steps, we remain committed to our long-term goals as we work toward a stronger financial foundation."

Mark Heinen, Chief Financial Officer, commented, "We achieved an Adjusted EBITDA positive quarter ahead of our previous forecast as a result of strong aircraft sales, including our first Gulfstream G280 delivery, additional cost savings initiatives and the transfer of flight operations to flyExclusive."

Conclusion

With the third quarter serving as the launch point for Volato’s turnaround, the Company is building positive momentum through disciplined cost reductions, targeted operational adjustments, and early growth in core revenue areas. Looking ahead, Volato remains focused on its turnaround objectives, balancing steady progress with ongoing efforts to strengthen its core business model.

Key Metrics

(financial metrics in thousands, except KPIs)

Third Quarter 2024 Financial Summary

Total revenue for the third quarter increased $36.6 million year-over-year, primarily from an increase in aircraft sales of $38.2 million and subscription revenue of $308 thousand. The increase in revenue from aircraft sales was the result of the delivery and sale of two HondaJet Elite IIs and one Gulfstream G280 during the third quarter of 2024. We have orders for three additional Gulfstream G280 jets and expect delivery in 2025.

Net loss from continuing operations for the third quarter improved to $1.3 million compared to a net loss from continuing operations of $2.6 million in the prior year period. Adjusted EBITDA in the third quarter was $3.2 million compared to negative Adjusted EBITDA in the prior year period. This improvement in Adjusted EBITDA was primarily due to an improvement in aircraft sales and subscription revenue and additional cost savings measures.

Balance Sheet and Liquidity

The Company ended the third quarter 2024 with $3.8 million of cash, and cash equivalents.

About Volato

Volato (NYSE American: SOAR) is an aviation company advancing the industry with innovative solutions in aviation software and on-demand flight access. Volato’s proprietary Mission Control software drives efficiency across operations and supports operators in managing fractional ownership, charter, and other services. Volato’s Vaunt platform connects travelers with available private flights, offering a flexible option for on-demand travel. With a commitment to advanced technology and customer-focused solutions, Volato is building scalable tools to elevate service quality and operational effectiveness in private aviation. For more information visit www.flyvolato.com.

All Volato Part 135 charter flights are operated by its DOT/FAA-authorized air carrier subsidiary (G C Aviation, Inc. d/b/a Volato) or by an approved vendor air carrier.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management or the Board’s current expectations or predictions of future conditions, events, or results. All statements that address operating performance, events, or developments that may occur in the future are forward-looking statements, including statements regarding the challenges associated with executing our growth strategy, including expected deliveries of aircraft and related sales, and developing, marketing and consistently delivering high-quality services that meet customer expectations. All forward-looking statements speak only as of the date they are made and reflect the Company’s good faith beliefs, assumptions, and expectations, but they are not guarantees of future performance or events. Furthermore, Volato disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, and regulatory factors, many of which are beyond Volato’s control, that are described in Volato’s periodic reports filed with the SEC including its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2023, and other factors that Volato may describe from time to time in other filings with the SEC. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

ADJUSTED EBITDA

We calculate Adjusted EBITDA as net loss adjusted for (i) interest expense, net, (ii) provision for income taxes (benefit) (iii) depreciation and amortization, (iv) equity-based compensation expense, and other non-operating items. We include Adjusted EBITDA as a supplemental measure for assessing operating performance.

The following table reconciles Adjusted EBITDA to net loss, which is the most directly comparable GAAP measure (in thousands):

View source version on businesswire.com: https://www.businesswire.com/news/home/20241118632690/en/

Contacts

For Media:
media@flyvolato.com

For Investors:
investors@flyvolato.com