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 distress, reporting significant net losses and negative working capital, which raises "substantial doubt" about its ability to continue as a going concern.
In response to financial pressure, Volato is "rightsizing" its fleet by removing five leased planes and furloughing pilots, citing delayed new jet deliveries and lower-than-anticipated demand.
The company is also non-compliant with NYSE listing standards due to its financial condition but has submitted a plan to regain compliance by December 2025.
Volato's current challenges, including reliance on new aircraft sales and delivery delays, mirror issues that led to the recent failure of another fractional jet operator, Jet It.

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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.