On Friday, Jet.AI, a company specializing in private aviation and artificial intelligence, announced an agreement to purchase three Cessna Citation CJ4 Gen2 aircraft from Textron (NYSE:TXT) Aviation Inc. This acquisition is a strategic move to expand Jet.AI's fleet and introduce a new CJ4 Gen2 fractional program, catering to individual and business clients seeking flexible private aviation solutions.
The new aircraft are expected to be delivered in the second, third, and fourth quarters of 2026, enhancing Jet.AI's offerings in the private aviation market. The company's founder and chairman, Mike Winston, expressed enthusiasm about increasing capacity with the CJ4, which is the largest member of the Textron Aviation CJ family and has been a reliable option for light jet customers for 14 years.
Jet.AI's fractional ownership program will provide guaranteed access to the new Citation CJ4 Gen2, a nine-passenger light jet celebrated for its high speed, advanced avionics, and luxurious amenities. The aircraft is designed to meet the demands of private aviation clients who rely on these services for both business and personal travel.
Currently, Jet.AI operates a fleet that includes three HondaJets, one Citation CJ4, and a King Air 350i aircraft. The latest agreement with Textron Aviation signifies an addition to Jet.AI's ongoing plans to expand its super-mid fleet, indicating a period of growth for the company in the private aviation sector.
In other recent news, Jet.AI Inc. has launched a $2 million stock repurchase program, authorized by the board of directors, which is set to run through December 31, 2025. This initiative follows the company's decision to withdraw a proposed offering, aiming to regain compliance with NASDAQ's listing rule regarding stockholders' equity.
Jet.AI has also secured an agreement with Textron Aviation Inc. for the acquisition of three Cessna Citation CJ4 aircraft, a strategic move expected to bolster its service offerings and operational efficiency.
Further, the company faces potential delisting from Nasdaq due to non-compliance with the minimum bid price requirement. However, it remains hopeful about regaining compliance before the extended deadline. Jet.AI has also adjusted the terms of Series B Convertible Preferred Stock held by Ionic Ventures and announced a direct stock offering, aiming to sell around 15.6 million shares projected to yield approximately $1.5 million in gross proceeds.
In addition, Jet.AI has secured a $280 million debt financing arrangement for the acquisition of Bombardier (OTC:BDRBF) Challenger 3500 aircraft, with deliveries expected to commence in 2026. These recent developments highlight Jet.AI's ongoing efforts to align its corporate strategies and investor relations. The company continues to introduce enhancements to its AI-driven software products, CharterGPT and Reroute AI.
InvestingPro Insights
Jet.AI's recent agreement to purchase three Cessna Citation CJ4 Gen2 aircraft aligns with its ambitious growth strategy, as evidenced by the company's impressive revenue growth. According to InvestingPro data, Jet.AI has seen a substantial 46.66% increase in revenue over the last twelve months as of Q3 2024, with quarterly revenue growth of 16.34% in Q3 2024. This expansion in fleet capacity could potentially support further revenue growth.
However, investors should note that Jet.AI currently faces profitability challenges. InvestingPro Tips highlight that the company suffers from weak gross profit margins, which is reflected in the negative gross profit margin of -4.18% for the last twelve months as of Q3 2024. Additionally, the company does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
For those interested in a deeper analysis, InvestingPro offers 4 additional tips for Jet.AI, providing a more comprehensive view of the company's financial health and market position.
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