FlyExclusive Q3 Revenue Rises 21% to Record $111.1M, Signs Aircraft Management Deal With Fly Alliance

FlyExclusive reported third-quarter revenue of $111.1 million, up 21% from $92.1 million a year earlier and a record for the company. Flight revenue rose to $103.9 million from $86.7 million, and MRO revenue increased to $4.3 million from $3.1 million. Gross profit climbed 95% to $24.6 million from $12.6 million. Adjusted EBITDA was $5.1 million versus negative $1.9 million a year ago, the third positive quarter in the past four, while Adjusted EBITDAR rose from $2.8 million to $9.4 million. The company reported a GAAP net loss of about $13 million.

For the first three quarters, revenue rose to $318.5 million from $271.6 million, year-to-date Adjusted EBITDA improved from negative $13.5 million to $8.6 million, and Adjusted EBITDAR rose from $1.5 million to $20.9 million. Year-to-date flight hours increased from 54,236 to 58,237 even though aircraft on certificate fell from 90 to 73, a 19% smaller fleet. Dispatch availability improved to 58.2% from 48.9%. Fuel costs rose 13% year over year at an average of $7.02 per gallon, but the company said it mostly passed the higher costs on to customers.

In its 10-Q filing, FlyExclusive disclosed that it signed an Aircraft Management Services Agreement with Fly Alliance, a top-15 charter operator, the previous day. FlyExclusive will provide aircraft management, maintenance, finance, accounting and treasury management services, will retain the excess of revenue collected over expenses, and will receive a share of Fly Alliance's profit. Fly Alliance's current owner, Christopher Tasca, and former owner Kevin Wargo are in a split; the FAA lists 18 aircraft as available for charter on the Fly Alliance certificate sold to Wargo.

Jet Club sales reached $38.6 million, up 22%, and fractional sales rose about 22% to $16.8 million. Members contributing revenue increased from 1,168 to 1,252, while active members were flat at 1,086 versus 1,088. Wholesale sales for 2026 exceeded full-year 2025 sales by mid-October. In October the company flew nearly 7,300 flight hours versus a Q3 average of 6,553 per month, and Segrave said he expects fourth-quarter revenue to exceed the Q3 record.

FlyExclusive ended Q3 with $19.6 million in cash, up from $14.2 million at June 30 but down from $29.3 million at the end of 2025. Deferred revenue was $139.8 million, up from $135.9 million. Long-term notes payable were about $136.0 million versus $165.4 million a year earlier, and CFO Brad Garner said they have been reduced by about $96 million since the start of 2025. Aircraft deposits support three new CJ3+ aircraft expected for delivery in early 2027. The company expects positive operational cash flow in the fourth quarter.

The year-to-date figures show an operator producing more flight hours from fewer aircraft: 58,237 hours against 54,236, on a certificate that shrank from 90 aircraft to 73. In charter and fractional operations, profit depends heavily on how many hours each tail flies, so pruning underperforming aircraft and lifting dispatch availability can improve margins even as headline fleet size drops.

The Fly Alliance agreement points to a second route to growth. Managing another operator's aircraft, with FlyExclusive keeping the excess of revenue over expenses and taking a share of profit, adds revenue without the purchase of new aircraft. Consolidation among charter operators often runs through arrangements like this one, particularly where ownership of the target is contested, as the Tasca and Wargo split is here.

Two milestones are named for the coming months: the fourth-quarter revenue figure that Segrave expects to exceed the Q3 record, and the early-2027 delivery of three CJ3+ aircraft backed by deposits. The company also expects positive operational cash flow in the fourth quarter, which will show up in the next cash balance against the $19.6 million reported at the end of Q3.