Volato has cut five aircraft from its fleet in a move the company has characterized as part of “ongoing efforts to enhance operational efficiency and profitability.” The announcement comes on the heels of the company’s quarterly financial report indicating a net loss of $34.3 million in the six months this year. In the second quarter, it reported more than $17 million in losses.
The company said it expects to save $1.2 million per quarter as a result of the fleet reduction. Volato also secured a $4 million term loan at the end of the quarter which it says will enhance its “cash position and support (it) on (the company’s) path to profitability.” It is still expecting the delivery of eight to 10 HondaJets and two Gulfstream G280s in this fiscal year.
Meanwhile, Volato was informed on June 18 by the New York Stock Exchange that it was not in compliance with the exchange’s listing standards, which requires companies to have an equity of at least $2 million.
“We have always been transparent about the challenges we face, including delayed aircraft deliveries and the need to manage our fleet size prudently,” said Volato CEO Matt Liotta. “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.”
At press time, Volato did not respond to AIN's requests for comment.