FlyExclusive posts $46.8m net loss in FY23

FlyExclusive, the North Carolina-based private jet charter company, recently released its first annual report since its December 2023 initial public offering (IPO) wherein it reported a net loss of $46.8m in 2023, a stark contrast to the net gain of $6m achieved in 2022.

FlyExclusive reported total revenue of $315m in 2023, a slight decrease from $320m in 2022. This dip can be attributed to the termination of a revenue-sharing agreement with Wheels Up, another jet charter service. 

Notably, Wheels Up previously accounted for a significant portion nearly 40% of FlyExclusive’s income in 2022. On June 30, 2023, FlyExclusive terminated its agreement with Wheels Up. Following this termination, Wheels Up share in FlyExclusive revenue declined to 22% during FY23.

Beyond the dip in revenue, the company’s total costs and expenses also went up. Cost of revenue, which includes expenses directly associated with operating flights, such as fuel, pilot salaries, landing fees, and aircraft maintenance clocked in at $264.2m in 2023, up from $255.4m in 2022 .

Selling, general and administrative (SG&A) expenses also witnessed a significant 40% jump. In 2023, FlyExclusive’s  SG&A expenses increased to $75.4m from $53.8m in 2022. The increase suggests higher marketing and sales efforts in 2023, possibly to offset the loss of revenue from the terminated agreement with Wheels Up.

Meanwhile, depreciation and amortization expenses, increased slightly from $23.1m in 2022 to $26.9m in 2023 .

As of December 31, 2023, the company held approximately $254m in assets. However, a significant portion of this is offset by $193m in long-term debt, primarily related to aircraft purchases.

Meanwhile, cash and cash equivalents were reported at a relatively low $11.6m.

“We currently anticipate that cash required for expenditures for the next 12 months (2024) is approximately $137.6m,” the company said in the financials. During the fiscal year under review, the company reported net decrease in cash and cash equivalents of $11.5m compared to net increase of $2m in 2022.

FlyExclusive share price has plummeted by 77% since March 2024.