Blade Air Mobility reports stellar Q3 performance
Blade Air Mobility announced its financial results for the third quarter of 2023, highlighted by a 56% year-on-year (YoY) surge in revenue to a record $71.4m.
This growth was driven by robust performances in both the MediMobility Organ Transport and short distance segments.
Blade Air Mobility achieved net income of $0.3m, marking a significant reversal from the losses incurred over the past four quarters. The company also posted a positive cash flow (FCF) of $1.3m in the third quarter.
“Our turn to profitability this quarter highlights the results of our strong execution on growth initiatives,” said Will Heyburn, Blade’s chief financial officer.
“We remain committed to expanding flight profit margins, optimising our cost base and adding profitable new business lines like our new organ matching service to maximise FCF generation.”
Delving into the segment-wise breakdown, MediMobility Organ Transport revenues jumped by 65% YoY to $33.4m, compared with $20.2m during the same period last year.
On the passenger front, short distance business revenues also witnessed a remarkable 50% YoY increase to $30.8m, compared with $20.4m. This growth is primarily driven by acquisitions in Europe and strategic improvements across short distance route networks. Meanwhile, jet and other revenue increased 49.1% YoY to $7.6m in the current quarter versus $5.1m in the prior year period driven by an increase in jet charter volume.
“We are extremely pleased to deliver our first quarter of positive free cash flow and adjusted EBITDA while maintaining rapid revenue growth in both the passenger and medical segments,” said Rob Wiesenthal, Blade’s CEO. “This achievement is a testament to our team’s unwavering dedication to executing our growth strategy and enhancing our operational efficiency.”
Blade Air Mobility also reported strong margins across all its segments. The passenger segment achieved margins of 24.8%, while the medical segment margins stood at 18.4%.
Looking ahead, Blade Air Mobility expects to further enhance its profitability through the expansion of its new business line, Trinity Organ Placement Services (TOPS). TOPS is a platform to help transplant centres determine if an organ is a match for a potential recipient, thereby reducing transplant waiting times.
Blade Air Mobility has made several strategic acquisitions in an effort to expand its market reach and introduce new and profitable business lines. The company acquired Skyports, Helicopter-Service Deutschland GmbH and Air Hamburg in Europe.