XOJET, the leader in on-demand private aviation, hits a mid-year stride with 12% growth in total revenue. A record-breaking first quarter showed year-over-year increases of 15% in overall business and 39.5% in Off-Fleet Charter Brokerage, supporting continued strategies for expansion. The company still dominates the on-demand super-mid charter market in the United States with 31% share of flights exceeding three hours occurring on the XOJET fleet.
As the leading charter brokerage in North America, XOJET's off-fleet business continues at an unprecedented pace in 2018 with a 22% increase in revenue and a 12% increase in hours in the first half of the year. Off-fleet charter made up 34% of overall revenues during the same time period, putting XOJET well on its way toward its goal of having charter brokerage account for 50% of revenues by 2020. This success is in part a result of increasing its Preferred Partner Network of aircraft by 40% to 1,400+ aircraft in light- to large-cabin sizes, which expanded the company's ability to deploy a larger variety of jets and flights to service more client missions. The company is also now focused on increasing its share of corporate clients as more firms sell-off owned aircrafts and seek alternative solutions for efficient travel.
"Our growth momentum and strong showing in the first half of 2018 are indicative of a growing appetite for on-demand private aviation and our ability to cater to a spectrum of client needs," said Brad Stewart, chairman and CEO of XOJET. "Fractional flight activity continues to decline, more clients are recognizing the economic benefits of on-demand and we are seeing an increasing trend of corporations outsourcing their private aviation needs."
The company's on-fleet revenue also remains healthy with a 6% year-over-year increase, based on higher fleet efficiency, utilization and pricing. The company has also started a fleet expansion program and recently took delivery of two Citation X aircraft, further strengthening XOJET's position as North America's largest on-demand operator of super mid-sized private aircraft.
Underscoring the rising trend of membership subscriptions, XOJET's three-tiered Access SolutionsTM program has reached unparalleled sales targets with nearly 1,000 members in its inaugural year. To offer an even stronger alternative for fractional and jet card owners, XOJET recently unveiled enhancements to Elite AccessTM. Members of this highest membership tier are guaranteed fixed hourly rates and access on light and mid-cabin aircraft classes in addition to XOJET's flagship super-mid product, all without ownership or long-term commitment.
In the first half of 2018 XOJET added seven luxury brands to its portfolio of world-class partners. Members now enjoy exclusive benefits with Sea Island, Monticello Motor Club, Peter Millar, Heliflite, Shipsticks/Shipskis, Private Medical and Hertz. These coveted brands join XOJET's other distinguished partners, including Mandarin Oriental, Pebble Beach Resorts, The Private Suite, Yellowstone Club, Gavin de Becker & Associates and Pinehurst, among others. "We continue to curate an unparalleled partnership portfolio that enhances our members' travel experience beyond the jet," said James Henderson, XOJET's president of commercial operations. "These service-oriented, like-minded global brand leaders provide our clients with preferential access and exclusive value-added benefits."
To recruit and retain pilots, XOJET heightened its investment in recruitment, increased pilot compensation, added new training programs, implemented flexible scheduling and expanded pilot leadership opportunities. Veteran pilot Susanne Kelly was promoted to assistant chief pilot, adding to the company's impressive roster of female talent. Setting a standard for female leadership within the aviation industry, XOJET encourages equality in the workplace with women currently making up 30% of director level and above positions at the company, which is among the highest in the industry.
The company also has its sights on international expansion by growing its network of operating partners in Europe to service intra-European flights. XOJET already services inter-European travel with access to over 200 large-cabin transatlantic jets like the Bombardier Global 5000, Dassault Falcon 900, and Gulfstream G550, that fly between the U.S. and Europe.