Different sources have estimated the number as between 11 percent and as high as 20 percent. The company issued a statement to Private Jet Card Comparisons, an online news source that specializes in shared ownership aviation companies and their pricing programs.

“As a matter of policy, Wheels Up does not comment on personnel matters out of respect for the privacy of those involved,” the Wheels Up statement read in part. “However, given the release of internal communications, we do feel it is our responsibility to publicly acknowledge the macro industry factors were the largest contributor to our decision. The sharp decline in our pilot attrition rates in the first half of this year, due in part to a reduction of pilot hiring at the commercial airlines and pilots choosing to stay at Wheels Up, created the staffing imbalance that led to today’s actions.”

The statement cited that aligning its pilot roster with the size of its fleet is critical and “the abnormalities in the industry over these last few months made appropriate staffing forecasting against regular attrition challenging.”

Wheels Up did not immediately return a phone call Tuesday from AVweb for comment.

Despite a $500 million funding package from Delta Air Lines and a new management team, Wheels Up has continued to report losses, though executives still expect to return to profitability by the end of this year. The company reports it fleet includes around 170 aircraft: 59 Beech King Air turboprops, 43 Cessna Citation X super-midsize jets, and 35 Hawker 400XP light jets.

Earlier this month, according to a Jet Card Comparisons report, Wheels Up reduced daily minimum flight times for its jet aircraft and cut back the number of peak days for its entry-level program customers. In September, Wheels Up divested its aircraft management division.

Editor’s Note: This article first appeared on AVweb.

The post Wheels Up Confirms Pilot Layoffs appeared first on FLYING Magazine.

But in the last few years—especially following the pandemic—this life of luxury has become more accessible than ever through the growing popularity of charter services. In this article, we’ll discuss what a charter flight is, some of the (less obvious) benefits, and how to charter a private jet.

What Is a Charter Flight?

Here’s a dirty little secret: That celebrity you follow who always posts pictures of trips on a private jet likely doesn’t own it (we’re not talking about Taylor Swift here, folks). Given that the cost of a new private jet can easily reach $70 million, plus hundreds of thousands of dollars in annual operating costs, owning a private jet is out of reach for even the average celebrity. Even at the higher end of wealth, many people opt for fractional ownership (think timeshare for planes) through companies like NetJets. 

The far more common, cost-effective, and accessible path to flying private, however, is chartering a plane. Chartering a plane is distinct from flying commercial in that, when you charter a plane, you are effectively renting the entire plane. Essentially, you tell the charter company what kind of plane you want, where you want to go, and when you want to go. It does the rest.

There are a number of benefits to chartering planes. For example, it enables you to:

• Avoid regular airport terminals and security, saving time and a lot of headache.
• Fly to smaller, more convenient airports, potentially allowing you to visit multiple. locations (i.e. that factory or satellite office) in less time. 
• Not be subject to the airlines’ schedules, providing more flexibility.
• Stay away from other passengers.

To be clear, flying commercial—even first class—will almost certainly be cheaper. But if you value your time, convenience, and flexibility, the benefits of chartering your own private jet may be worth it. Luckily, thanks to increased demand and competition, booking a private jet has never been easier.

5 Steps to Book a Private Jet Air Charter Service

From finding a plane to charter to receiving a private jet quote, charter companies have stepped up their game in recent years to make this option extremely accessible. Here are the steps you should follow to charter a private jet.

Step 1: Identify Your Executive Jet Charter Needs

If you need to fly from Los Angeles to New York City on a Monday morning and return Tuesday afternoon, you can likely find a first-class ticket on an airline that provides the convenience and comfort you desire. However, if you need to fly from Midland, Texas, to Des Moines, Iowa, for a business meeting at 8 a.m. then drop off your dog in Billings, Montana, by noon before a 4 p.m. meeting in San Diego on a Wednesday, a commercial airliner probably isn’t going to work. 

That’s where the flexibility of a charter jet can be beneficial. Most people don’t realize that in addition to the major international airports in large cities, there are hundreds of regional airports that airlines service less frequently, if at all. Private jets, on the other hand, can access these locations easily, providing greater convenience to passengers. 

If you crave such convenience, then start thinking about your budget. We’ll break down private jet quotes in another step, but generally speaking, the bigger the jet, the bigger the bill. Size depends on two variables: the number of passengers and distance to travel. Private and business jets can carry anywhere from four to 19 passengers, plus crew. However, even if you are the sole passenger, small jets simply cannot carry enough fuel to fly long range. You’ll need to pay for a larger jet with greater range if you are expecting to travel from, say, New York to Milan.

Based on your destination and passenger requirements, charter jet companies like Trilogy Aviation Group will determine the type of plane you need.  

Step 2: Research Private Jet Charter Airlines

Next you’ll want to do a little research. Unlike the extremely regulated airlines, charter companies vary in quality. The FAA’s Safe Air Charter initiative encourages customers to be weary of deals that seem too good to be true. While competition may drive down prices slightly, licensing, maintenance, and jet fuel aren’t cheap.  

Well-known companies like NetJets and Leviate Air Group have excellent safety and service records. Deciding between similarly reputable companies might come down to availability based on the size of their fleet and the type of jets offered. Some companies specialize in light jets, such as the Cessna Citation CJ3, while others may focus their businesses on longer range jets, such as the Global 6000 or Gulfstream G550. 

These considerations can seem dizzying to the average customer. That’s where a private jet broker can come in. Brokers are like realtors for planes. They match customers to charter companies based on all of the requirements discussed above, hunt for deals, and charge a commission for their service. You can also check out our guide to the best charter jet services for recommendations.

Step 3: Get Private Jet Quotes and Compare Options

Obtaining a private jet quote has never been easier online. For example, Trilogy Aviation Group empowers you to obtain a quote with just your origin and destination, travel dates, and number of passengers—it’s like Google Flights for chartering a private jet.

Keep in mind these are estimates, and the cost will be affected by a number of factors, including the:

• Type of plane 
• Distance to travel 
• Airport fees (i.e. landing fees) 
• Jet fuel surcharges, which are the primary variable costs

Additionally, insurance, cost of regulatory compliance, maintenance, and flight crew are rolled into these prices. Regardless, expect to receive quotes for hourly rates (i.e. $4,000 per hour). In rare cases you may see “all-in” fees, but these are typically only offered for empty legs.

While these fees quickly add up, keep in mind you are flying private, and chartering is usually far more cost-effective than owning your own jet. Still, with so many charter companies competing, don’t be afraid to compare quotes and negotiate certain fees. 

Step 4: Book Your Charter Flight

Once you’ve decided on a private jet operator or broker, booking is fairly straightforward. You’ll receive a service contract, which you should read carefully, sign, and remit with payment. Some companies accept credit cards, while others require wire transfers (after all, we are talking tens of thousands of dollars, in most cases). Additional fees, such as limousine services coordinated by the charter company for instance, will be calculated and added to the final bill.

While flying private offers some level of anonymity, you’ll still need to provide proof of identification and, for international flights, passports and visas (if applicable) for all passengers. Don’t be surprised if the pilots also ask about things like food or plants in your luggage, as you are required to report such items to customs.

Step 5: Prepare for Your Flight

There are a few things to know before you go. 

First of all, say goodbye to busy airport terminals. Private jets operate out of FBOs. These are usually located on the opposite end of the airport from commercial terminals, and provide all of the comfort and convenience you would expect when paying for a private jet. In most cases, you can show up just minutes before your flight, check in with the FBO desk, and have a seat in the lounge. 

The FBO will notify your pilots of your arrival, and you’ll be escorted to your plane. If you opt for limousine service booked through the operator, you may skip the FBO altogether and instead be driven directly to your plane. 

That’s right: no TSA, no luggage check. The pilots are obligated to ensure none of the baggage poses a safety to flight, but unless you’re traveling internationally, don’t expect to go through metal detectors or remove your shoes. Just hand your bags to the flight crew and settle in for a quick preflight briefing, and you’ll be taxiing within minutes. 

Depending on the size of the plane, you can expect first-class service from the flight crew, including meals if available. Many operators will allow pets and even your own beverages. Watch movies, prop your feet up, and relax. Do as you please, so long as you don’t cause a safety concern for the flight crew. 

So, Now You Know How to Charter a Private Jet…

Expensive? Relative to commercial flying, yes. Convenient and comfortable? Absolutely. If you value your schedule, flexibility, and privacy, chartering a plane can be worth the cost and has never been more accessible. 

Still, do your research and ensure the operator is safe and reputable. And most of all, enjoy it! Flying in a private jet is true luxury. 

FAQ

How much does it cost to charter a private jet?

Costs vary greatly based on the size of the jet, which is primarily determined by the number of passengers and the distance to be flown. Short domestic flights for 5-9 passengers may average about $2,000 per hour, while international flights may start around $10,000 per hour. Check out this private jet charter cost estimator for more information.

Is it worth it to charter a private jet?

If you require flexibility in location and schedule, chartering a private jet may be the perfect option for visiting multiple rural sites in a single day. Private charters have access to airfields that airlines don’t and can offer massive time savings by bypassing TSA and airline delays.

Is it better to own or charter a jet?

Unless you fly more than 300 hours a year, chartering is likely more cost effective than owning. Chartering also provides more flexibility in the types of planes on which you fly and allows you to hunt for deals across charter companies. See this analysis of owning vs. chartering a private plane for a more detailed breakdown.

The post How to Charter a Private Jet in 5 Steps appeared first on FLYING Magazine.

Today’s Top Pick is a 1999 Pilatus PC-12​/​45.

The PC-12 single-engine turboprop was a revolutionary concept when Swiss aerospace company Pilatus developed it in the late 1980s. Most large, pressurized turboprop transports were twin-engine designs such as the popular Beechcraft King Air. Pilatus sought to demonstrate that a single-engine aircraft could provide similar reliability and performance while also operating from short,  unpaved strips.

The airplane grew to be known as a jack-of-all-trades, becoming a standard in corporate fleets, charter and air-taxi operations and in air-ambulance and other special missions. Quite a few pilots own PC-12s for personal use, often mixing business-related travel with family vacation trips. I know of at least a couple of PC-12 pilots who regularly take their families to destinations in Florida on weekends, noting how the aircraft’s speed and pressurized comfort make the trip reasonably easy compared with long-distance travel in the typical high-performance piston single.

This Pilatus PC-12-45 has 15,665 hours on the airframe, including 9,679 landings, 1,100 hours and 798 cycles on its Pratt & Whitney PT6A-67P engine, and zero time since overhaul on its five-blade propeller. The aircraft’s useful load is 3,309 pounds.

The panel includes Garmin GNS 430W and GNS 530W nav/com radios, Garmin GTX 345 and Bendix/King KT 70 transponders, Honeywell KMD-850 MFD and KRA-405B radar altimeter, Bendix/King KAC-501 WX radar, KDR-610 datalink weather receiver, Bendix King KHF-950 high-frequency com system,  

Bendix King KA-44B ADF, Bendix/King 325 autopilot, and Honeywell DME.

Additional equipment includes supplemental air conditioning, FD200CPU-7 flight display, and True Blue Power dual USB charging ports.

Pilots seeking a higher level of single-engine utility and performance, from short-field operations to high-altitude, long-distance travel, should consider this 1999 Pilatus PC-12-45, which  is available for $3.2 million on AircraftForSale.

You can arrange financing of the aircraft through FLYING Finance. For more information, email info@flyingfinance.com.

• FLYING Magazine: Pilatus PC-12 Fleet Logs 10 Million Flight Hours
• FLYING Magazine: We Fly: Pilatus PC-12 NGX
• FLYING Magazine: Pilatus PC-12 Aircraft Meet European Noise Regs with 7-Blade Prop
• Plane & Pilot: NBAA 2019: Pilatus Unveils New PC-12
• Plane & Pilot: Blackhawk Announces Engine Program for the Pilatus PC-12
• AVweb: Ontario-Based Ornge Air Ambulance Updates Its Pilatus PC-12 Fleet
• AVweb: AirVenture 2023: Honeywell Anthem Pilatus PC-12 Tour

The post This 1999 Pilatus PC-12-45 Is a Multimission ‘AircraftForSale’ Top Pick appeared first on FLYING Magazine.

Plans for the transaction were first announced in October 2022. The merger was officially approved by EG Acquisition Corp.’s stockholders at a special meeting held last week. flyExclusive’s common stock began trading on the New York Stock Exchange on December 28.

• READ MORE: FlyExclusive, SmartSky Expands Wi-Fi Partnership Ahead of IPO

“Today marks another milestone in our company’s mission to elevate the private aviation experience,” said flyExclusive founder and CEO Jim Segrave. “We built flyExclusive around the value that minutes matter for our customers, and this principle will continue to guide the disciplined approach that has defined our success in the industry.”

About flyExclusive

Headquartered in North Carolina, flyExclusive offers on-demand charter, Jet Club, and fractional jet services. The company recently secured a $30 million investment from the State of North Carolina to build a new pilot training center and headquarters. The facility is expected to include 10,000 square feet of space for up to five full-motion flight simulators, 14,000 square feet in classrooms and training space, and a 22,000 square-foot air operations center.

FlyExclusive also announced last October that it had added the 100^th jet to its fleet, which is made up of Cessna Citation Encores, Citation Excel/XLSs, Citation Sovereigns, and Citation Xs. According to the company, the October delivery makes it the second-largest operator of Cessna Citations in the world. FlyExclusive’s most recent purchase agreement with Textron Aviation covered options for up to 30 Cessna Citation CJ3+ jets.

The post FlyExclusive Finalizes SPAC Merger appeared first on FLYING Magazine.

Volato, which offers fractional ownership, aircraft management, jet card, deposit, and charter programs, announced its plans to become a publicly traded company last August. PACI shareholders approved the move at a special shareholders meeting on November 28. Volato’s common stock and warrants are set to begin trading on the New York Stock Exchange on December 4.

“We believe that this transaction provides not only the capital to accelerate our fleet growth and strategy, but also a level of transparency and institutional support that should make our product even more attractive to new fractional owners and private fliers,” said Volato CEO and co-founder Matt Liotta. “After founding the company in 2021 and quickly ramping to nearly $100 million of revenue in 2022, we are now positioned to build on this momentum as a public company.”

PACI also announced the closing of $12 million in private investments. Combined with funding from an earlier Series A funding round and the conversion of Volato convertible debt, the company reports that it has raised over $60 million in capital. The money is expected to be used to fund business operations and grow Volato’s fleet, which is made up primarily of HondaJets.

• READ MORE: Volato Closes Deal for 25 HondaJets

“This transaction and recent new investments come at an ideal time for Volato, as we see strong demand for our product in the market,” said Volato chief commercial officer and co-founder Nicholas Cooper. “The private aviation industry has undergone a secular expansion in recent years due to changes in customer behavior along with greater customer awareness of the options and solutions available for private travel.”

The post Volato Completes PACI Merger, Prepares to Go Public appeared first on FLYING Magazine.

Over the weekend, Mahomes-endorsed Airshare closed a deal to acquire rival Wheels Up’s private aircraft management business. The move more than quadruples Airshare’s own managed fleet—comprising Cessna Citations, Bombardier Globals, Embraer Legacies and Praetors, and other models—with the addition of 90 airframes.

The transaction leaves Wheels Up with around 215 aircraft, including 75 Beechcraft King Airs, 61 light jets, and 52 super midsize jets capable of making transcontinental flights. According to Private Jet Card Comparisons, Wheels Up prior to the deal was the fourth-largest fractional and charter provider in the U.S. based on flight hours. Airshare ranked 11th.

In addition to the aircraft, the Overland Park, Kansas-based company will inherit 300 personnel from Wheels Up’s private management business. John Owen, CEO of Airshare, told FLYING the move will double or even triple the company’s headcount.

Billing itself as a private aviation services provider, Airshare offers third-party aircraft management in addition to fractional ownership, jet card, and charter services. Already, it manages King Air, Citation Excel, and Citation X models that make up the bulk of Wheels Up’s fleet, many of which were included in the transaction. The company also manages light and large-cabin jets such as the Embraer Phenom 300 and Bombardier Global 5000.

Owen sat down with FLYING to discuss more details of the deal.

Expanding Options

Airshare began exploring aircraft management in 2008 with the launch of its Executive Flight Services offering, which along with the firm’s fractional business was later rebranded under the Airshare umbrella. According to Owen, a deal such as the one with Wheels Up was a long time coming.

“We had been looking at acquisitions in the aircraft management space for really the last few years but hadn’t come across anything that made sense to go all the way through with,” Owen told FLYING. “We were approached by a representative with Wheels Up earlier this year and asked if we had any interest in pursuing their particular aircraft management business. So that’s how it all started.”

Owen said Airshare considered a few smaller deals but landed on Wheels Up because it “instantly gives us a coast-to-coast footprint for aircraft management.” Coast-to-coast coverage has been on the firm’s radar for a while now, and the acquisition will support its plans to offer fractional and jet card services nationally. It added those services to the Florida market in May and will soon set its sights on the Northeast.

Of course, the quadrupling of its managed fleet will be of major benefit to Airshare. On the fractional side, it operates a total of 22 Embraer Phenoms and Bombardier Challengers. But the managed business covers aircraft from Phenoms and Challengers to Citations, Gulfstreams, Legacies, and Globals, several of which will be added through the transaction. The company will even get its hands on a few new models.

“With the acquisition of this particular aircraft management business, there’s a lot of [the above aircraft].” Owen said. “There’ll also be some Dassaults and some other planes. So it’s a lot of what we’ve dealt with in the past, but there’s also some new types in there as well.”

Owen is particularly excited about the addition of Wheels Up support teams, which he views as a crucial piece of the puzzle. Not only will it more than double the company’s aircraft management staff, but it will allow Wheels Up customers to work with the same representatives they’re used to—as if the deal never happened.

“We are not just absorbing the aircraft… We are taking the aircraft, the aircraft management teams, the maintenance teams, and the various accounting and administrative staff teams all along with it,” said Owen. “So, those owners that were under the Wheels Up umbrella will see zero changes day one after the acquisition, because they’ll be working with the exact same teams they have been the entire time.”

The Airshare CEO emphasized that the new managed aircraft will complement—rather than supplement—its fractional services. The two businesses are stand-alone, he said, since customers who bought into the fractional program did so with Phenoms and Challengers in mind, not the models covered by the management service.

Rarely—on 2 to 3 percent of trips, by Owen’s estimate—Airshare will “off-fleet” flights using primarily managed aircraft, providing a slight bonus to customers. But the real benefit, he said, is the potential for coastal expansion and the addition of support teams to assist both new and legacy clients.

The deal does not necessarily mean Airshare will place greater emphasis on aircraft management. Rather, the intent is to expand options for customers, many of whom jump back and forth between the firm’s services. For example, Owen estimated about half of Airshare’s managed aircraft are owned by previous fractional customers.

“I think the core of our business is private aviation services,” he said. “It isn’t fractional, it isn’t managed, it isn’t charter, and it isn’t jet cards. It’s really…having a wide swath of private aviation services that fit your particular needs at a particular time.”

Looking ahead, Airshare is confident in the demand for its managed services. The company keeps an eye on pricing and utilization data and regularly consults with customers to assess the strengths and weaknesses of the private aviation sector. Owen pointed to a healthy lead time of two years for new aircraft as an indicator of a well-oiled supply chain.

The Airshare boss also hinted that the company could one day add electric vertical takeoff and landing (eVTOL) and other emerging aircraft types to its fleet. That won’t happen in the near future, but the novel designs are on the firm’s radar.

“It’s definitely something that’s intriguing that we’re watching very closely,” Owen said. “We’re just kind of trying to figure out who’s going to survive that space. What exactly is going to come out of that space? But I think it makes a lot of sense, and I think a lot of people can use it.”

Arrow Pointing Down for Wheels Up?

The deal for Wheels Up’s private management business was initially revealed in August, when it announced it was seeking emergency funding in the form of a bridge investment from Delta Air Lines.

Later that month, Delta, Knighthead Capital Management, and Certares Management—which owns luxury travel agency Internova Travel Group—invested $500 million in the company to keep it afloat. But the bailout came at the expense of a 95 percent stake in the firm, placing its ownership largely in Delta’s hands.

Coincidentally, Delta once owned Wheels Up’s management business in full. It sold its Private Jets unit to its new subsidiary in 2020, retaining ownership of one-fifth of the business.

Wheels Up last year became the largest Part 135 operator in the U.S., with more than 1,500 owned, leased, managed, and partner aircraft in service. But since going public in July 2021, the company has lost money each quarter and contended with cost cutting, layoffs, and reports of cash flow woes.

Those rumors reached a fever pitch in May, precipitating the resignation of founder and CEO Kenny Dichter. Former chief financial officer Todd Smith took his place as interim CEO before the firm announced George Mattson, a Delta board member, as the permanent successor.

Mattson will reportedly shelve Wheels Up’s vision of an Airbnb-type marketplace to focus on existing services. In June, the company transitioned to a slimmed-down, more populated, capped rate primary service area, part of an emphasis on cost cutting and streamlined operations. Moving forward, it will also integrate its sales and marketing activities more tightly with Delta.

According to Doug Gollan, editor-in-chief of Private Jet Card Comparisons, Wheels Up remains one of a handful of providers offering cut prices for continental flights that are $10,000 to $25,000 cheaper than the competition. The company’s King Airs also continue to be viewed as a cost-effective option for short flights.

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The post Airshare Quadruples Fleet in Deal for Wheels Up Private Management Business appeared first on FLYING Magazine.

The news is the latest leadership change for the company that last month received $500 million in an emergency bailout from Delta Air Lines and other investors that saved it from bankruptcy. The company’s founder, Kenny Dichter, stepped down as CEO in May.

• READ MORE: Delta, Others Invest $500M in Wheels Up Bailout

Wheels Up Experience Inc. (NYSE: UP) was founded in 2013 as a private jet travel company. According to Wheels Up, Mattson brings 25 years of aviation experience to the role, as a strategic adviser, financier, business owner/operator, and director. His previous roles included a place on Delta’s board of directors. 

“In 10 years Wheels Up has grown from a startup into a global leader in private aviation, with a strong consumer brand and loyal member community,” Mattson said. “I look forward to leading the Wheels Up team, with the operational, commercial, strategic, and financial support of Delta and our other new investors. Delivering best-in-class operating performance and exceptional customer experiences, consistently and profitably, will attract more members to our community as we begin the next chapter of the Wheels Up story.”

According to a press release, Mattson served as a partner and co-head of the Global Industrials Group in Investment Banking at Goldman Sachs. from 2002 to 2012. At the time, his responsibilities included oversight of the transportation and airline practices. 

Since 2014, he has been the lead investor and chairman of Tropic Ocean Airways, the nation’s second-largest operator of seaplanes. Tropic Ocean Airways is a Wheels Up partner.

Mattson will be based in Atlanta, where Wheels Up recently established a state-of-the-art member operations center. He will start the new job in October.

The post Wheels Up Selects George Mattson as New CEO appeared first on FLYING Magazine.

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.

Total revenue rose 71 percent year over year to $61 million, a figure that would fall to 42.3 percent had Blade owned its Europe business during the same period last year. But losses widened about 45 percent to $12 million, offsetting any gains.

The Financials

Blade’s flight profit was up 103 percent year over year, hitting $10.4 million on the back of improved growth and profitability in its U.S. short distance and MediMobility Organ Transport businesses, as well as contribution from the European segment.

The firm is also making more money from each flight. Flight margin improved from 14.3 percent in Q2 2022 to 17 percent this past quarter, largely because of a higher average flight profit margin in the European business and the use of more dedicated aircraft for MediMobility, which lowered operating costs. Improved pricing and volume in its by-the-seat Airport Transfer service in New York and falling spot market jet charter costs also contributed to improved margins.

The company’s short distance offering—which charters 10 to 100 sm (8.7 to 87 nm) passenger flights primarily on helicopters and amphibious seaplanes—saw revenue climb 75 percent year over year to $19.2 million, largely from the U.S. segment.

That includes Blade Airport, which grew revenue by 65 percent and became the fastest-growing product in the company’s passenger segment. It saw increases in seats flown and average revenue per seat. Its longest-running route between Manhattan and John F. Kennedy International Airport (KJFK) was also profitable on a flight-profit basis for the first time.

In May, Blade agreed to revitalize and operate the Newport Helistop (91NJ) in Jersey City, New Jersey, where it is considering adding a by-the-seat service between the Helistop and New York City-area airfields. Already, it has launched a pilot program for charter flights.

However, the passenger business was bogged down by Blade’s Jet and Other segment. It saw revenue hold firm at around $7.4 million, with an increase in jet charter volume offset by a decline in the average price per trip. 

In total, passenger revenue grew 44.6 percent to $26.6 million.

“In our passenger business, we saw strong volume and pricing growth in the Northeast, particularly for our five-minute helicopter transfers between Manhattan and New York-area airports,” said Rob Wiesenthal, CEO of Blade.

MediMobility accounted for the rest of Blade’s gains, raking in a record $34.4 million in revenue—nearly double that of a year ago. New transplant center customers, growth among existing customers, and strong market demand helped it post high-water marks.

In April, the service completed a record-breaking heart transplant mission, transporting a donor heart and doctors more than 2,500 nm from Juneau, Alaska, to Boston. It was the longest distance a donor heart has traveled for a transplant.

“Blade’s record performance this quarter illustrates the value proposition of our diversified business model,” said Wiesenthal. “In MediMobility, we continue to benefit from new organ preservation technologies that are expanding the market, as well as the addition of a number of new transplant center and organ procurement organizations.”

However, net losses continue to balance out revenue. Blade attributed the figure to an unfavorable change in the fair value of warrant liabilities, which created an additional $2.5 million in losses. That’s compared to favorable accounting that reduced losses by $19.3 million a year ago.

But another culprit may be the integration of the Europe business, which is “moving slower than we planned,” Wiesenthal wrote in a letter to shareholders. That delay has increased operating costs. At the same time, the normalization of travel patterns from last year’s highs has hampered demand.

All of this has kept Blade from achieving net positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). That figure improved 28 percent to negative-$4.4 million as medical adjusted EBITDA outpaced the passenger segment. However, it did outpace revenue growth, which signals the potential for profitability down the line.

Blade ended the quarter with zero debt and $170 million in cash and short-term securities.

The Outlook

While still unprofitable, Blade continued to improve its business in Q2 and is bullish on its future.

“We expect that continued growth and cost efficiencies will lead to further year-over-year improvement in adjusted EBITDA in the second half of the year,” said Will Heyburn, CFO of Blade.

Further, the company expects sequential improvements to flight profit and margins in Q3.

Blade is particularly optimistic about the organ transport market, which it views as a sleeping giant. Because a portion of its Q2 revenue came from one facility it had been supporting temporarily, the firm anticipates flat growth in the medical segment next quarter. But single-digit gains should return in Q4, and the segment is on track to deliver double-digit annual growth.

“We believe [organ transport] is a megatrend that is in the early innings and could support multiple years of above-trend market growth, which is consistent with what we are seeing both in public data and amongst our own customers,” Wiesenthal wrote to shareholders.

On the passenger side, Blade sees Airport as the key segment. But it also expects Blade Europe to be a long-term revenue driver for the business, citing southern Europe as one of the world’s top consumer helicopter markets. In June, Blade and Embraer air taxi subsidiary Eve Air Mobility agreed to integrate the latter’s aircraft into the former’s European routes, beginning with France.

Looking further out, Blade received a boost from the FAA Innovate28 plan for advanced air mobility (AAM) integration. The document calls for early AAM operations, such as Blade’s planned eVTOL service, to rely on existing infrastructure. And the company already has its own.

“This approach validates Blade’s unique strategy, focused on our exclusive Blade terminals at existing heliports and airports in the most active air mobility corridors operating around the world today,” said Melissa Tomkiel, president of Blade. “As a result, Blade is best positioned to enable the gradual transition of today’s air mobility fliers from helicopters to [eVTOL].”

As it continues to post losses, Blade is unlikely to launch its eVTOL service before dedicated AAM providers, such as Archer Aviation and Lilium, introduce their own. But with a network of vertiports and a footprint on either side of the Atlantic, Blade may be better positioned to capitalize on that market when the time is right.

“We are proud of the work the team did to deliver an outstanding second quarter, and we look forward to building on this momentum in the second half of the year,” Wiesenthal concluded the Q2 shareholder letter. “As always, we remain laser-focused on driving profitable growth, innovation, and delivering exceptional performance for our customers and our shareholders.”

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The post Blade Air Mobility Posts Strong Q3 Revenue, but Profits Continue to Elude appeared first on FLYING Magazine.

The on-demand Part 135 provider, which reserves prepurchased time on airplanes from charter operators through a membership model, on Wednesday announced that it received emergency funding from Delta Air Lines, which owns one-fifth of the company. It postponed its earnings announcement, which was scheduled for Wednesday morning.

Multiple media reports claim the firm said there was “substantial doubt” about its ability to continue operations, even with the investment. Wheels Up stock (NYSE: UP) was in freefall Wednesday morning, tumbling nearly 45 percent.

“Wheels Up Experience Inc. is actively involved in discussions around strategic business partnerships for the company and [Wednesday] announced that Delta Air Lines has provided a short-term capital infusion to the company,” the company told investors in a statement.

Wheels Up also said it has entered into a nonbinding letter of intent to sell its private jet management business to private aviation company Airshare. The move sheds non-core company assets and was hinted at in May, when the company underwent a leadership shake-up amid weak financials and whispers of bankruptcy.

Airshare stands to double or even triple its owned and managed fleet if the deal goes through. Wheels Up would be left with some 150 King Airs, Citation Excels, Citation Xs, and other aircraft out of its current fleet of around 1,500, which includes partner aircraft.

The deal is expected to close in the third quarter, subject to customary approvals.

“Airshare has our same dedication to the customer and focus on extraordinary service, and we believe this will be a great destination for our managed fleet and team,” said Dave Holtz, chairman of operations at Wheels Up. “As we looked for a strong partner, Airshare’s commitment to aircraft management and overall customer experience stood out.”

What It Means

Rumors of Wheels Up’s cash flow woes first emerged Tuesday, when Bloomberg News reported the firm would seek emergency funding to keep it afloat. The hope is that shedding the private aircraft management business will help it bounce back after a disappointing few quarters.

Wheels Up became the largest Part 135 operator in the U.S. last year with more than 1,500 owned, leased, managed, and partner aircraft in service. But since going public, the company has lost money each quarter.

Those losses, combined with recent cost cutting, layoffs, and murmurs of bankruptcy, precipitated Wheels Up founder and chief executive Kenny Dichter’s May resignation. The company has yet to name his successor, with former chief financial officer Todd Smith serving as interim CEO. Dichter’s departure also marked a shift in focus toward the company’s core charter business.

In the first quarter of 2023, Wheels Up reported year-over-year revenue growth of $26 million, suggesting some rebound potential. But compared to Q1 2022, it posted a 1 percent decline in active members and a 13 percent dip in live flight legs as its net loss climbed $12 million.

It’s unclear how much the aircraft management division contributed to that figure. But Airshare sees potential in the business.

“Aircraft management has become a core source of revenue for Airshare,” said John Owen, president and CEO of Airshare. “Adding aircraft capacity and valuable owner relationships to our rapidly expanding managed fleet positions us very well for the future.”

Airshare, which also offers days-based fractional ownership, jet cards, charter services, and third-party maintenance, already provides management for the three aircraft types (Beechcraft King Air, and the Cessna Citation Excel series and Citation X) that currently comprise the bulk of Wheels Up’s fleet. Those services also extend to light and large-cabin jets, such as the Embraer Phenom 300 or the Bombardier Global 5000.

Integrating Wheels Up’s base of managed aircraft should add flexibility for Airshare customers. Doug Gollan, editor-in-chief of Private Jet Card Comparisons, reported, “Jet card and fractional customers of the Overland Park, Kansas-based company will now have broader charter options when their program aircraft type doesn’t fit their mission.”

In addition, aircraft owners currently in Wheels Up’s management program will now have increased opportunities to earn money when they aren’t flying by chartering their aircraft to Airshare’s base of customers.

“A core part of our business is aircraft management, and this is certainly going to strengthen that aspect of our business,” an Airshare spokesperson told FLYING. “But we offer a holistic suite of solutions that encompass aircraft management, fractional programs, and charter, and through this potential transaction, every customer we have across all those solutions will benefit.”

Airshare appears to be gathering momentum, having recently placed an order to double its Bombardier Challenger 3500 fleet, expanded into Florida, and extended its brand deal with Kansas City Chiefs superstar quarterback Patrick Mahomes II.

According to research by The Business Journals, the company records around $142 million in annual revenue.

The post Wheels Up Seeks Emergency Funding, Delta Steps into the Gap appeared first on FLYING Magazine.

In a statement posted within the story, a Wheels Up representative said: “As previously disclosed, Wheels Up is evaluating strategic options to transform our business in close coordination with our financial stakeholders, industry participants, and advisors. Our priority remains continuing to deliver an extraordinary experience for members, and doing that safely, reliably and on-time.”

Wheels Up soared high last year as the largest Part 135 operator in the U.S., and it has attracted marquee investors along the way—and joined pilot development programs such as Delta’s Propel, and ATP Flight School. However, the fact that the New York-based company has lost money each quarter since going public has led to recent shake ups in leadership at the company, and moves to focus in on the core charter business.

READ MORE: Wheels Up Reports Losses, Names New CEO

The company’s current stock price is at $2.40 [NYSE:UP] as of press time. Wheels Up will release its second quarter financial results in an earnings call on Wednesday, at 10 a.m. EDT. FLYING has reached out to the company for comment.

The post Wheels Up Seeks Emergency Funding, According to Report appeared first on FLYING Magazine.