Jim Segrave - Founder, CEO & Chairman:

Greetings, and welcome to the flyExclusive First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Kyle Nagarkar, Investor Relations. Thank you. You may begin.

Thank you, operator. Good afternoon and thank you for joining flyExclusive's first quarter 2025 earnings conference call. Joining me on the call today is Jim Segrave, flyExclusive's Founder and Chief Executive Officer; and Brad Garner, our Chief Financial Officer. We announced first quarter financial results yesterday after the market close, along with the filing of our Form 10-Q for the quarter ended March 31, 2025. Today, we'll be providing certain non-GAAP information during today's discussion. Important disclosures about this information, and a reconciliation of the non-GAAP information to comparable GAAP information is included in our Form 10-Q filed with the SEC and is available on our Investor Relations website. In addition, this discussion might include forward-looking statements. Actual results might differ materially for any number of reasons, including risk factors described in our annual report on Form 10-K, and our quarterly reports on Form 10-Q, and in the press release covering forward-looking statements. Rather than rereading this information, we're going to incorporate it by reference in our prepared remarks. With that, let me turn the call over to Jim.

Thank you, Kyle, and thanks to everyone for joining us today. Last quarter, I spoke about the transformation of flyExclusive throughout 2024. That transformation continues, and the benefits are now showing up across our operations, our customer experience, and most importantly, our financial results. We've modernized our fleet, strengthened our team and streamlined our cost structure. Our partners, along with Jet Club and fractional members, are seeing the results in better aircraft, better service and more reliability, and our shareholders should now be seeing the value this platform can deliver over time. Let's start with the fleet, because that's where so much of our turnaround began. At the start of 2024, as we've discussed in the past, we had 37 non-performing aircraft in the fleet. The older Gulfstreams were the biggest drag, followed by the Citation Encore and X fleets. Today, we only have one of the non-performing Gulfstreams left in the fleet, down from seven, and just two of the Encores remain, down from 11. We've eliminated half of the Citation X fleet, and we'll wind down the remaining aircraft over the next 12 months as new challengers come online. The negative impact from these non-performing aircraft has been reduced by approximately 80% from a peak of over $3 million per month to less than $600,000 today. Over the next few quarters, we will fully eliminate this drag on our performance. From an operational standpoint, these non-performing aircraft had dispatch availability of around 30%. As we eliminated 23 of them, we improved our overall maintenance dispatch availability by nearly 100%, now reaching in the low 60% range. As we finish removing the non-performing aircraft, we expect continued gains. This is how we've delivered sustained growth in flight hours and revenue with approximately 17 fewer aircraft. We estimate the old…

Thank you, Jim. I'll say again, as one of the newer members of the flyExclusive team, that the energy and excitement at the company is real. Our improvement year-over-year is a testament to the continued execution against our strategic initiatives, modernizing our fleet through disposing non-performing aircraft, adding Challengers, right-sizing the cost structure to an appropriate and scalable level and institutionalizing the operation. I'll begin with the first quarter's financial highlights. As Jim mentioned, flyExclusive reported Q1 2025 revenues of $88 million, which again is up roughly 10% year-over-year, a strong result given a roughly 20% reduction in the fleet due to the disposals of non-performing aircraft over the past year. The growth was broad-based and reflects strength in the demand for our charter, Jet Club, and fractional businesses. Total fractional and Jet Club membership increased nearly 30% over the last year, and we ended the quarter with over 1,000 customers contributing to revenue during the last three months. Additionally, in what's typically a slower quarter for fractional sales, we saw strength driven by the onboarding of new jets in the fleet. Fractional program activity generated $16.2 million of sales in Q1, up 100% year-over-year. And as Jim mentioned, our pipeline remains strong. Flight revenues generated from our fractional members more than doubled over last year to $8.6 million during the quarter. And as we've seen in prior quarters, we continue to see a positive shift in our revenue mix to contractually committed demand through our fractional and Jet Club membership programs. We also continued the momentum from Q4 2024 in our MRO business, which continues to scale and has high inbound inquiry and a growing backlog. MRO revenues of $1.8 million in the quarter were 18% higher than a year ago, and we have ample capacity to continue growing…

Thank you, ladies and gentlemen. Thank you for your participation. This now concludes our conference.