Avantair Financials Show Revenue Jump
Fractional-share operator Avantair saw its revenues climb significantly for the fiscal year that ended on June 30. Compared with the same period last year, revenues increased 51.3 percent, to $115.6 million from $76.4 million. The company’s strong showing during the past fiscal year was a result of an increase in fractional share revenue (up 46.2 percent), higher maintenance and management fee revenue (up 50.1 percent), charter card and demonstration revenue (up 59.4 percent) and a 151.5-percent increase in FBO and other revenue. Avantair now has 45 Piaggio Avantis owned by shareowners and needs to sell only three more whole airplanes to reach breakeven, according to CEO Steve Santo. In addition to the revenue increases, Santo also credits Avantair’s lower costs and efficient Avanti turboprops, which are attracting customers from other operators, for the financial improvement. Santo doesn’t expect Avantair’s management fees to rise further. For the fiscal year, loss from operations decreased 12.9 percent, to $16.6 million from $19 million last year. Looking at cash-flow (earnings before interest, taxes, depreciation and amortization), Avantair’s loss dropped to $162,957 in June, down from $1.7 million in January. “Things have gotten a whole lot better,” said Santo.