Volato cuts fleet and introduces cost cutting measures....

Volato Group, a leading private aviation company and the largest HondaJet operator in the United States, has launched a host of cost-cutting measures to enhance operational efficiency and profitability. As part of this programme, the firm is reducing its fleet by five leased aircraft which it hopes will save approximately $1.2 million per quarter in cost savings.  It had tried to renegotiate the leases for those planes, but the rates they were given were not low enough to achieve the required savings.  

Matt Liotta, CEO of Volato said:  “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.”

Volato 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. This greater aircraft utilization should help the firm's financial position but also enhance the value delivered to fractional ownership customers through increased revenue share.

“We remain confident in the future delivery of new HondaJets and in our ability to meet the evolving needs of our customers,” added Liotta. “By right-sizing our fleet now, we are ensuring that our operations remain efficient and aligned with both current and future demand.”

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.

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