Volato provides update on fleet status, cost efficiency measures

Volato announced further steps in its ongoing efforts to enhance operational efficiency and profitability. As part of this strategy, the company will be removing five leased aircraft from its fleet, a decision that aligns with the anticipated delivery of new HondaJets and the current pace of demand growth. This action is expected to provide approximately $1.2M per quarter in cost savings. This announcement follows previous public statements in which Volato outlined a commitment to cost-saving measures, including the renegotiation of aircraft leases. While Volato successfully renegotiated several agreements, efforts to renegotiate the leases on these aircraft did not yield terms that aligned with the company’s financial objectives. As a result, Volato has decided to end these less profitable leases as part of its broader fleet optimization strategy. The company has worked closely with Honda Aircraft Company to increase the availability and efficiency of its fleet, enabling Volato to meet its flight hour needs with fewer planes. The company continues to expect to take delivery of a total of 10 to 12 new aircraft in 2024, including 8 to 10 HondaJets and two Gulfstream G280s.