Volato Lays Off Employees During Transition

In a SEC filing on Tuesday morning, the AMS includes an option for Volato to merge into a wholly owned subsidiary of flyExclusive. This option expires one year from the date of the agreement and allows an option for flyExclusive to purchase Volato during that time.

This comes as Private Jet Card Comparisons reports widespread layoffs at Volato. A source familiar with the situation at Volato confirmed such layoffs and provided FLYING with a letter of termination they received from the company.

“In light of market conditions this year, Volato has been actively seeking ways to improve its operating costs and increase efficiencies,” the letter stated. “As part of that, Volato has been undergoing talks with several private aviation companies and has recently signed a letter of intent (LOI) with flyExclusive. The LOI outlines an immediate move to combine certain operations through cooperative agreements. This strategic move is expected to strengthen our position in the market and provide new opportunities for growth. However, as we transition through this period, it has become necessary to adjust our workforce to better align with our current and future operational needs.”

The letter further stated that the step was part of Volato’s strategy to improve operational efficiency and reduce costs as the company anticipates the delivery of new aircraft and the successful completion of its merger with flyExclusive.

Tuesday’s agreement will see flyExclusive manage flight operations, sales, and expenses of Volato’s fleet, which consists of 13 fully fractionalized aircraft, eight leased aircraft, and four managed aircraft. The goal under the AMS is to transfer aircraft to the flyExclusive certificate, which will occur over the coming months in coordination with the FAA.

“As a fully integrated operator, flyExclusive is well positioned to offer synergistic value to Volato’s clients and deliver enhanced value for our overall growing customer base,” said Jim Segrave, founder and CEO of flyExclusive, in a news release from the company. “Over the years, we’ve made strategic investments to remove industry bottlenecks and grow and maintain a leading, consistent customer experience. We’re proud to welcome Volato’s customers and look forward to offering them access to our growing fleet of light, midsize and super-midsize jets.”

In addition to managing Volato’s retail and wholesale business, flyExclusive will execute flights for Volato’s customer base of approximately 184 fractional customers and 265 block customers until they are moved over to FLYX agreements. 

The release states that this agreement will significantly increase the FLYX direct-to-customer facing business in the United States. FlyExclusive expects approximately $75 million in revenues from Volato—excluding aircraft sales—to transfer to FLYX. FlyExclusive states in the release that it is confident these flights can be executed with minimal additional overhead. 

The AMS will also provide flyExclusive with access to Volato’s technology through a software license agreement.

“FlyExclusive is a proven operator with a robust platform and unwavering focus on the customer experience,” said Volato CEO Matt Liotta in the release. “This agreement provides mutual benefit to both of our companies and, most importantly, our customers benefit by increased flight and service options with the reliable and high-quality service they have come to expect from best-in-class operators.”

Volato did not immediately respond to FLYING's request for comment.