Executive Summary

Q1 2024 revenue was $13.21M, down 16% YoY on zero aircraft sales; net loss widened to $17.4M (EPS -$0.60) as public-company costs and marketing spend rose; Adjusted EBITDA was -$13.1M .
Operations were strong: flight hours +39% YoY to 2,926, blended yield +8% to $5,313/hour, empty-leg rate improved to 35.1%, and demand mix reached 50% non-owner, all supporting future margin potential .
Management announced an executed term sheet for $14.5M of financing and implemented ~$3M/quarter SG&A reductions; they target positive gross margin and EBITDA in Q4 2024 with >$120M 2024 fractional-sales revenue expected (excl. usage and other) .
Guidance shifted: FY24 aircraft delivery outlook trimmed to 10–12 (from 10–14) with G280 deliveries now expected at two; HondaJet and G280 deliveries are key catalysts for sales recognition, liquidity, and cost leverage into year-end .
S&P Global consensus estimates were unavailable for PACI at the time of retrieval; as a result, estimate comparison is not provided, and we highlight delivery timing, financing close, and cost execution as likely stock narrative drivers [SpgiEstimatesError].

What Went Well and What Went Wrong

What Went Well

Flight operations: Total flight hours grew 39% YoY (2,926 vs. 2,103) with blended yield +8% to $5,313/hour; empty-leg percentage improved to 35.1% (from 41.2%) and non-owner mix rose to 50%, supporting revenue/hour and future unit economics .
CEO on demand and product traction: “We achieved strong year-over-year growth across our key metrics as we executed on our strategy to drive more favorable demand mix and higher yield per flight hour… we expect to deliver year-over-year growth again in Q2.” .
Vaunt milestone: Vaunt, the empty-leg subscription platform, posted its first cash-positive month in March 2024, demonstrating incremental monetization of repositioning inventory .

What Went Wrong

Topline pressure from OEM delays: No aircraft deliveries in Q1 resulted in zero aircraft sales revenue (vs. $5.71M in Q1’23), driving total revenue down 16% YoY to $13.21M; management cites OEM delivery delays as the core driver .
Losses widened and opex elevated: Net loss increased to $17.4M (from $7.5M), and Adjusted EBITDA loss to -$13.1M (from -$6.7M), primarily due to public-company costs and higher marketing to support fractional sales .
Liquidity/going-concern disclosure: The 10-Q raises substantial doubt about going concern absent new capital; management points to financing, aircraft sales, and cost reductions as mitigation plans .

Financial Results

YoY comparison (Q1 2024 vs Q1 2023)

Metric	Q1 2023	Q1 2024
Revenue ($M)	$15.67	$13.21
Net Loss ($M)	$(7.52)	$(17.39)
Diluted EPS ($)	$(0.67)	$(0.60)
Adjusted EBITDA ($M)	$(6.69)	$(13.10)

Sequential comparison (Q4 2023 vs Q1 2024)

Metric	Q4 2023	Q1 2024
Revenue ($M)	$31.46	$13.21
Net Loss ($M)	$(23.64)	$(17.39)
Adjusted EBITDA ($M)	$(8.11)	$(13.10)

Segment Revenue (Aircraft Sales, Usage, Managed)

Segment ($000)	Q1 2023	Q1 2024
Aircraft Sales	$5,710	$0
Aircraft Usage	$6,684	$11,516
Managed Aircraft	$3,271	$1,695
Total Revenue	$15,665	$13,211

KPIs and Operating Metrics

KPI	Q4 2023	Q1 2024
Total Flight Hours	3,504	2,926
Empty Percentage	37.9%	35.1%
Demand Mix – Owner	52%	50%
Demand Mix – Non-Owner	48%	50%
Blended Yield ($/hr)	$5,348	$5,313
Floating Fleet (units)	24	26
Net Promoter Score	88	82

Notes: Q1 2024 revenue decline vs. Q1 2023 was driven by zero aircraft sales (OEM delivery delays) offset by 72% growth in aircraft usage revenue; cost of revenue for usage also rose with fleet scale .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Aircraft Deliveries	FY 2024	10–14 aircraft (Q4’23 PR)	10–12 aircraft (Q1’24 PR)	Lowered
G280 Deliveries	FY 2024	2–4 units in 2024 (Q4’23 commentary)	2 units in 2024 (Q1’24 CEO)	Lowered
HondaJet Deliveries	FY 2024	“Nine to eleven new jets in FY 2024” (Q4’23 CFO)	“Expect delivery of 8–10 HondaJets” in 2024 (Q1’24 CEO)	Slightly narrowed/lowered
Profitability Milestone	Q4 2024	Not explicitly dated (prior)	Expect positive gross margin and EBITDA in Q4 2024 (CFO)	New explicit timing
SG&A Run-Rate	2024 run-rate	N/A	~$3M per quarter reduction implemented; pro forma Q1 SG&A ~$8.9M	Cost reset
Fractional Sales Revenue	FY 2024	N/A	“Over $120M this year from fractional sales alone” (CFO)	New disclosure

Earnings Call Themes & Trends

Note: A full Q1 2024 transcript was not available in the document system or company IR site archives at time of review; themes below reflect company earnings materials (press releases, 10-Q/MD&A, KPI release).

Topic	Previous Mentions (Q3’23, Q4’23)	Current Period (Q1’24)	Trend
OEM Delivery Timing / Supply Chain	Delivery delays pressured 2023 topline; easing expected into 2024–2025 .	No Q1 deliveries; update to 10–12 FY24 deliveries; G280 set to 2 units .	Still constrained near-term; clearer cadence emerging.
Demand Mix & Yield	Non-owner mix rose to 48% in Q4’23; blended yield $5,348 .	Non-owner mix 50%; blended yield $5,313; flight hours +39% YoY .	Stable-to-improving mix; yield resilient.
Cost Control	Sequential gross margin improved in 2023; discipline emphasized .	~$3M/quarter SG&A cuts; aim for Q4 positive EBITDA .	Accelerating cost actions.
Liquidity / Financing	Ended Q4 with $14.5M cash; confidence to reach profitability .	$14.5M financing term sheet to unlock G280 deposits + equity; working-capital support .	Liquidity steps underway.
Empty-leg Monetization (Vaunt)	Launched in Q4’23 to monetize empty legs .	First cash-positive month in March 2024 .	Execution gaining traction.
Market Positioning	Largest U.S. HondaJet operator; fleet expanded to 24 by YE’23 .	Floating fleet 26; light-jet market share 2.5% .	Continued scale.
Going Concern	N/A	Substantial doubt absent capital; plan: financing, aircraft sales, cost controls .	Key risk flagged.

Management Commentary

CEO (Matt Liotta): “While OEM aircraft delivery delays put pressure on our revenue in the first quarter, we achieved strong year-over-year growth across our key metrics… we expect to deliver year-over-year growth again in Q2… We continue to expect the delivery of 8 to 10 HondaJets but now expect delivery of two Gulfstream G280s in 2024.”
CFO (Mark Heinen): “Following another quarter of strong operating results, we took steps to strengthen our balance sheet… With an expected revenue of over $120 million this year from fractional sales alone, continued revenue growth from aircraft usage and our cost-savings measures, we expect that we can achieve positive gross margin and EBITDA in the fourth quarter of 2024.”

Q&A Highlights

A full Q1 2024 earnings call transcript was not available via company filings or transcripts in our document system. Based on the company’s earnings materials, investor focus areas included: delivery timing and its impact on aircraft sales recognition, the $14.5M financing (structure, timing, and runway), cost-reduction scope and cadence, and the path/assumptions to Q4 positive EBITDA . The call occurred May 15, 2024 at 8:00 AM ET per company communications .

Estimates Context

We attempted to retrieve S&P Global (Capital IQ) consensus for Q1 2024 (Revenue, EPS), but a mapping for PACI was unavailable in the CIQ integration at the time of request; therefore, consensus comparisons are not provided [SpgiEstimatesError].
Implications: Absent formal consensus, we anchor on actuals and company guidance; near-term estimate revisions (where covered) are likely to incorporate: (1) reduced FY24 delivery count and G280 timing, (2) explicit Q4 2024 EBITDA-positive target, and (3) >$120M fractional-sales revenue expectation for 2024, contingent on deliveries and financing close .

Key Takeaways for Investors

Delivery cadence is the swing factor: zero Q1 deliveries suppressed aircraft sales; FY24 deliveries (8–10 HondaJets, 2 G280s) are pivotal for sales recognition, liquidity, and operating leverage into Q4 .
Operating KPIs are trending right: flight hours, yield, empty %, and mix all improved YoY, validating demand and network efficiency, and setting a base for usage-margin improvement .
Path to Q4 EBITDA-positive hinges on three levers: (1) deliveries and fractional sales conversion, (2) SG&A run-rate execution (~$3M/quarter reduction), and (3) the $14.5M financing (unlocking G280 deposits + equity) closing on plan .
Liquidity risk remains a material consideration: the 10-Q’s going-concern language underscores reliance on external financing, timely deliveries, and disciplined cost control .
Vaunt shows early monetization proof: first cash-positive month supports broader strategy to monetize empty legs and enhance contribution margins .
Medium-term thesis: If OEM deliveries normalize and cost actions stick, the model can pivot to positive gross margin/EBITDA by Q4 2024, with 2025 setup more dependent on sustained delivery flow and scaling usage economics .

Appendix: Additional Data and Sources

Q1 2024 8-K Earnings Release (Item 2.02) and exhibits (financials, KPIs, quotes) .
Q1 2024 10-Q (financial statements, going-concern, liquidity detail) .
Q1 2024 KPI Press Release (historical KPI timeseries) .
Q4 2023 8-K Earnings Release (sequential comps, KPIs, delivery outlook) .
IR press page confirming Q1 2024 results and call timing .

S&P Global consensus data: unavailable for PACI due to CIQ mapping issue at time of retrieval [SpgiEstimatesError].

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