Volato (TMB, Houston Hobby) has announced it will return five of its leased HA-420 HondaJets as a part of its ongoing cost-cutting measures, having failed to renegotiate the leases to satisfactory rates. The move is expected to save the operator USD1.2 million a quarter.
"We have always been transparent about the challenges we face, including delayed aircraft deliveries and the need to manage our fleet size prudently. 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," CEO Matt Liotta declared.
The operator underlined that it had renegotiated other leases and that the move parallels improvements in flight utilisation, partially attributable to the increased availability and efficiency of the existing fleet; this allows Volato to achieve its target fleet hours with fewer aircraft. In the second quarter of 2024, the operator increased its flight hours by 5% compared to the same period of 2023.
Nonetheless, the operator plans to continue adding new aircraft.
"We remain confident in the future delivery of new HondaJets and in our ability to meet the evolving needs of our customers," Liotta added.
Volato operates the world's largest fleet of HA-420s available for charter, currently comprising 26 units in different variants. At the end of the second quarter - when the type's fleet stood at 25 units - Volato had 11 units under fractional ownership and 14 leased.
The company also operates one Citation Bravo, one Hawker 750XP, one King Air B200GT, one King Air B300, and one recently inducted G280. Volator said it expected to take another G280 by the end of 2024. It also anticipates adding eight to ten HA-420s during the course of 2024; so far it has taken four this year.
The operator posted a net loss of USD34.3 million in the first half of 2024, double the amount lost in the first half of 2023. However, it said it had "clear visibility to near-term profitability based on aircraft delivery schedule and unit economics."
