In an earnings call today, Atlanta-based private aviation company Volato reported a net loss of $32.1 million last year. It partially attributed the red ink to a $13.4 million non-cash charge related to the change in fair value of its forward purchase agreement and higher operating, selling, general, and administrative expenses from the growth in its business. The company also cited lower aircraft sales.

Volato co-founder and CEO Matt Liotta said industry factors such as new-production aircraft delivery delays also affected revenue by hobbling fractional share sales. Its reported 2023 revenues were $73.3 million.

“We are in close contact with our suppliers and partners and understand that production and supply chain issues are easing, providing us with good visibility into our 2024 and 2025 delivery pipeline,” he said. “We expect continued fleet expansion will propel revenue and margin in several ways, including increased fractional sales and operating revenue, and more efficient aircraft utilization. We remain focused on growth and our path to profitability.”

“Gross profit margins improved on a sequential basis through a disciplined approach to managing our cost base and pursuit of higher yielding non-owner flight hours over the course of 2023,” added chief financial officer Mark Heinen. “The growth of our floating fleet delivered higher usage revenue, and we expect these trends to continue as we add new aircraft to the fleet throughout the year. We also anticipate an increase in plane sale revenues with the expected delivery of nine to eleven new jets in FY 2024, providing the business with momentum on our path to profitability.”

Volato’s aircraft usage revenue for the fourth quarter increased by 121 percent as a result of an increase in the number of aircraft in its floating fleet. The company is expecting to take delivery of 22 HondaJet Elite IIs and four Gulfstream G280s in 2024 and 2025.