Volato to Drop 5 Leased Jets, Furlough Pilots

The move comes as the CEO of the fractional aircraft operator said the company is 'facing financial pressure.'

Caleb Revill

Monday, August 19, 2024 at 05:45 PM ET

Verified

Edited By:

Kimberly Johnson

In a company letter from Volato CEO Matt Liotta obtained by FLYING, he explains his decision to ‘rightsize’ the company’s fleet and crew by removing five leased planes and furloughing some of its pilots. [Courtesy: Volato]

Key Takeaways:

Volato is experiencing severe financial difficulties, reporting a $34.3 million net loss and raising "substantial doubt about the company's ability to continue as a going concern."
To mitigate financial pressure, Volato is "rightsizing" its operations by removing five leased planes and furloughing pilots, attributing this to delayed new aircraft deliveries and slower-than-anticipated demand growth.
The company is non-compliant with NYSE listing standards due to insufficient stockholders' equity and has submitted a plan to regain compliance by December 2025.
The article draws parallels between Volato's challenges and the collapse of Jet It, another fractional ownership charter jet operator that faced similar issues with cash flow and aircraft availability.

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Volato (NYSE: SOAR) has notified employees of plans to remove five leased planes from its fleet and furlough pilots in an attempt to lessen financial pressure gripping the fractional ownership charter jet operator.

A Form 10-Q—a quarterly financial report submitted to the Securities and Exchange Commission— filed by Volato on August 14 showed the company spiraling into the red, recording a net loss of $34.3 million for the six months ending June 30. The same form stated Volato has a negative working capital of $18.2 million and an accumulated deficit of $98 million as of June 30. Net cash used in operating activities for the six months was $7.4 million.