Avantair Posts Wider Loss Despite Higher Revenues
In its first-quarter FY2008 report issued late last week, Clearwater, Fla.-based fractional provider Avantair said revenues increased by 52.9 percent, to $25.7 million, year-over-year, but its quarterly net loss increased to $4.8 million from $3.8 million a year ago. The company sold more quarter shares in the Piaggio Avanti twin turboprop–the total standing at 552 versus 382.5 a year earlier–and revenue from maintenance and management jumped 61.6 percent to $13 million period-over-period. According to Avantair CEO Steven Santo, the “upsurge in new owners and card holders put some strains on our system” and thus increased expenses for chartering and positioning aircraft. Santo believes that owners and jet card holders will either fly fewer hours, which reduces costs, or will buy additional shares or cards. The company also has acquired two core aircraft to help lower its positioning costs. Avantair expects to take delivery of 15 Avantis in FY08, which would bring its fleet to 51 aircraft. Santo believes that the company will break even on a quarterly basis during FY08.