Volato Group, Inc. (PACI)·Q2 2024 Earnings Summary

Executive Summary

• Q2 revenue rose 16% year over year to $15.1M as aircraft usage revenue grew 28% and blended yield improved 6%; net loss was $(16.9)M, including a $(2.8)M non‑cash charge related to the forward purchase agreement, and Adjusted EBITDA was $(11.4)M .
• Mix shift continued toward higher‑rate non‑owner flying (56%), contributing to pricing power while flight hours grew 5% YoY; contribution per flight hour improved to $734 (from $516 in Q4’23 and $584 in Q1’24) .
• Management reaffirmed a path to positive EBITDA by Q4 2024 and highlighted delivery cadence as the key swing factor: 8–10 HondaJets and two G280s expected in FY24; a $4M term loan post‑quarter bolstered liquidity .
• Potential stock reaction catalysts: sustained non‑owner demand/yield gains, confirmation of aircraft delivery timing, and reiterated Q4 EBITDA breakeven, partially offset by public‑company cost headwinds and limited cash at quarter end ($5.4M) .

What Went Well and What Went Wrong

• What Went Well
  • Non‑owner mix reached 56% in Q2 (vs. 55% LY), lifting blended yield 6% YoY to $5,330 and supporting improving unit economics .
  • Contribution per flight hour advanced to $734 in Q2 (from $516 in Q4’23 and $584 in Q1’24) as pricing and efficiency improved with scale .
  • CEO: “Volato made significant progress with increased flight hours and improvements in blended yield in the second quarter… Our enhanced operations will help advance our path to profitability.” CFO: “Our fleet growth, in combination with the previously announced cost saving measures, should enable us to achieve positive EBITDA by the fourth quarter of 2024.” .
• What Went Wrong
  • OEM delivery delays again resulted in no aircraft sales revenue in Q2, limiting topline and gross profit leverage despite strong usage trends .
  • Net loss widened 72% YoY to $(16.9)M, driven in part by public‑company costs and a $(2.8)M non‑cash mark on the forward purchase agreement .
  • Managed services revenue declined 19% YoY to $2.7M; cash was $5.4M at quarter end, necessitating a $4M term loan post‑quarter to support growth and working capital .

Financial Results

Headline financials (oldest → newest)

Notes: Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue using reported figures.

Revenue composition (oldest → newest)

KPIs and operating metrics (oldest → newest)

EPS: The Q2 2024 press release did not disclose per‑share figures; Q1 2024 basic/diluted net loss per share was $(0.60) .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• CEO (Q2 press release): “Volato made significant progress with increased flight hours and improvements in blended yield in the second quarter… Our fleet growth, in combination with the previously announced cost saving measures, should enable us to achieve positive EBITDA by the fourth quarter of 2024.”
• CFO (Q2 press release): “Our fleet growth, in combination with the previously announced cost saving measures, should enable us to achieve positive EBITDA by the fourth quarter of 2024.”
• CEO (Q1 press release context): OEM delivery delays pressured Q1 revenue, but secular private aviation demand, backlog, and expected deliveries support visibility; expect EBITDA positive in Q4’24 .

Non‑GAAP: Adjusted EBITDA excludes interest, taxes, D&A, equity‑based comp, and “other items not indicative of ongoing operations” (e.g., cost savings/business realignment) as reconciled in the releases .

Q&A Highlights

• Transcript providers carried limited to no Q&A detail. The call focused on reaffirming FY24 delivery expectations, sequential SG&A improvement, and Q4’24 EBITDA breakeven goal; no substantive published Q&A themes were available from third‑party transcript sources reviewed .

Estimates Context

• S&P Global/Capital IQ consensus for PACI Q2 2024 was not available (no CIQ mapping found). As a result, we cannot present a Wall Street consensus comparison this quarter. We will anchor to S&P Global data if mapping becomes available in future periods.

Additional Q2’24 Press Releases and Materials Reviewed

• Volato Announces Date for Second Quarter 2024 Earnings Call (Aug 7, 2024) .
• Q2 2024 earnings presentation (filed with 8‑K) highlighting KPI trends, fleet plans, and contribution per hour .

Key Takeaways for Investors

• Operating flywheel is improving: non‑owner mix and blended yield continue to rise, with contribution per flight hour stepping up to $734, supporting the medium‑term margin story .
• Execution hinges on deliveries: reaffirmed 8–10 HondaJets and two G280s in FY24; each delivery adds cash via fractional sales and incremental high‑yield usage, but timing remains the swing factor .
• Cost actions are taking hold: sequential SG&A reduced and Adjusted EBITDA loss narrowed vs. Q1; management reiterated EBITDA positivity by Q4’24, a critical near‑term catalyst .
• Liquidity improved post‑quarter with a $4M term loan; end‑Q2 cash was $5.4M, so disciplined working capital and delivery cash inflows remain central to the runway .
• Vaunt momentum (≈$1M ARR) and Insider Program support monetization of empty legs and broaden demand—important levers to lift utilization and yields as fleet scales .
• Without Street consensus, trading setup is tied less to “beat/miss” optics and more to delivery confirmations, KPI trajectory, and Q4 EBITDA breakeven proof points; any slippage in OEM schedules would be a near‑term risk .

Appendix: Prior Quarters for Trend

• Q1 2024: Revenue $13.2M; net loss $(17.4)M; Adjusted EBITDA $(13.1)M; flight hours +39% YoY; blended yield +8% YoY; 50/50 owner vs. non‑owner; SG&A cost‑savings plan (~$3M/quarter) and financing term sheet ($14.5M) announced; EBITDA positive targeted Q4’24 .
• Q4 2023: Revenue $31.5M (usage $11.6M; aircraft sales $15.7M; managed $4.2M); net loss $(23.6)M; Adjusted EBITDA $(8.1)M; non‑owner mix 48%; blended yield $5,348; floating fleet 24; delivery delays cited .