Blade Air Mobility Posts Strong Q3 Revenue, but Profits Continue to Elude

Blade saw revenue growth in nearly all segments of its business, but those gains were balanced out by widening net losses.

Jack Daleo

Wednesday, August 09, 2023 at 05:10 PM ET

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A Blade-branded Beta Technologies ALIA-250 eVTOL completes a demonstration flight in New York. [Courtesy: Blade Air Mobility]

Key Takeaways:

Blade Air Mobility reported strong Q2 2023 revenue growth (71% to $61M), primarily driven by its MediMobility organ transport business and U.S. short-distance passenger flights, but net losses widened by 45% to $12M, partly due to accounting changes and slower European network integration.
Flight profit increased significantly (103%) and flight margins improved, largely fueled by the high-growth MediMobility segment and efficient U.S. airport transfer services, with key routes like Manhattan-JFK becoming flight-profit positive.
Despite current net losses, Blade anticipates improved adjusted EBITDA in the second half of 2023 and is strategically positioning its existing infrastructure for future eVTOL aircraft integration, aligning with the FAA's advanced air mobility plans.

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Helicopter and charter provider Blade Air Mobility hopes to one day add electric vertical takeoff and landing (eVTOL) aircraft to its growing fleet. But before that happens, it appears the company still has more than a few kinks to iron out within its core business.

Blade on Wednesday reported earnings for the second quarter of 2023, posting revenue growth in nearly every segment of its business. But the company continues to lose money as it juggles passenger transport, medical delivery, and the slower-than-expected integration of its Europewide network, announced in April.