Volato Announces Fleet Update and Cost Efficiency Measures
August 19 2024 - 5:00PM
Business Wire
Volato Group, Inc. (“Volato,” or the “Company”) (NYSE American:
SOAR), a leading private aviation company and the largest HondaJet
operator in the United States, today announced further steps in its
ongoing efforts to enhance operational efficiency and
profitability. As part of this strategy, the company will be
removing five leased aircraft from its fleet, a decision that
aligns with the anticipated delivery of new HondaJets and the
current pace of demand growth. This action is expected to provide
approximately $1.2 million per quarter in cost savings.
This announcement follows previous public statements in which
Volato outlined a commitment to cost-saving measures, including the
renegotiation of aircraft leases. While Volato successfully
renegotiated several agreements, efforts to renegotiate the leases
on these aircraft did not yield terms that aligned with the
company’s financial objectives. As a result, Volato has decided to
end these less profitable leases as part of its broader fleet
optimization strategy.
“We have always been transparent about the challenges we face,
including delayed aircraft deliveries and the need to manage our
fleet size prudently,” said Matt Liotta, CEO of Volato. “Today’s
decision is a continuation of our previously announced cost-saving
measures and reflects our commitment to making strategic
adjustments that position Volato for long-term success.”
Volato’s fleet optimization is also supported by recent
improvements in aircraft utilization. The company has worked
closely with Honda Aircraft Company to increase the availability
and efficiency of its fleet, enabling Volato to meet its flight
hour needs with fewer planes. This approach not only strengthens
the company’s financial position but also enhances the value
delivered to fractional ownership customers through increased
revenue share.
“We remain confident in the future delivery of new HondaJets and
in our ability to meet the evolving needs of our customers,” added
Liotta. “By right-sizing our fleet now, we are ensuring that our
operations remain efficient and aligned with both current and
future demand.”
These strategic adjustments are a key part of Volato’s broader
effort to ensure the company is well-positioned for future growth.
As new aircraft are delivered and demand continues to rise, Volato
is committed to maintaining the high level of service and
innovation that has made it a leader in the private aviation
industry.
The Company continues to expect to take delivery of a total of
10 to 12 new aircraft in 2024, including 8 to 10 HondaJets and two
Gulfstream G280s.
Cautionary Note on Forward Looking Statements
This press release contains certain "forward-looking statements"
within the meaning of the federal securities laws. Forward-looking
statements are predictions, projections and other statements about
future events that are based on current expectations and
assumptions and, as a result, are subject to known and unknown
risks, uncertainties, assumptions and other important factors, many
of which are outside of the control of Volato that could cause
actual results to differ materially from the results discussed in
the forward-looking statements. The words "anticipate," "believe,"
continue," "could," "estimate," "expect," "intend," "may," "might,"
"plan," "possible," "potential," "predict," "project," "should,"
"strive," "would" and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that statement is not forward-looking. These forward-looking
statements are subject to a number of risks, uncertainties and
assumptions that could cause actual events and results to differ
materially from those contained in such forward-looking statements.
Factors that could cause actual results to differ materially from
those expressed or implied in forward-looking statements can be
found in the Annual Report on Form 10-K, filed with the SEC on
March 26, 2024 and other documents filed by the Company from time
to time with the SEC. These filings identify and address other
important risks and uncertainties that could cause actual events
and results to differ materially from those contained in the
forward-looking statements. You are cautioned not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made, and Volato undertakes no obligation and does not
intend to update or revise these forward-looking statements,
whether because of new information, future events, or
otherwise.
About Volato
Volato (NYSE American: SOAR) is a leader in private aviation,
redefining air travel through modern, efficient, and
customer-designed solutions. Volato provides a fresh approach to
fractional ownership, aircraft management, jet card, deposit and
charter programs, all powered by advanced, proprietary mission
control technology. Volato's fractional programs uniquely offer
flexible hours and a revenue share for owners across the world’s
largest fleet of HondaJets, which are optimized for missions of up
to four passengers. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240819433318/en/
For Media: media@flyvolato.com
For Investors: investors@flyvolato.com
Volato (AMEX:SOAR)
Historical Stock Chart
From Oct 2024 to Nov 2024
Volato (AMEX:SOAR)
Historical Stock Chart
From Nov 2023 to Nov 2024