Overview of Blade Air Mobility’s Financial Performance

Blade Air Mobility, Inc. is a company that provides air transportation and logistics services, primarily in the Northeastern United States and Southern Europe. The company operates in two main segments - Passenger and Medical.

In the Passenger segment, Blade offers short-distance helicopter and seaplane flights, as well as jet charter and other ground transportation services. The Medical segment focuses on transporting human organs for transplant and related services.

For the year ended December 31, 2024, Blade reported total revenue of $248.7 million, up 10.4% from $225.2 million in 2023. This growth was driven by a 16.0% increase in revenue from the Medical segment, which reached $146.8 million, as well as a 3.3% increase in Passenger segment revenue to $101.9 million.

Profitability and Adjusted EBITDA

Blade’s net loss improved significantly, decreasing from $56.1 million in 2023 to $27.3 million in 2024. This was largely due to improvements in Adjusted EBITDA, which turned positive at $1.2 million in 2024 compared to a loss of $16.6 million in the prior year.

The improvement in Adjusted EBITDA was driven by both the Passenger and Medical segments. Passenger Adjusted EBITDA increased from a loss of $5.0 million in 2023 to a gain of $3.6 million in 2024, due to higher revenue and lower costs per flight. Medical Adjusted EBITDA grew 79.3% to $19.3 million, benefiting from increased revenue, a shift to more efficient dedicated aircraft, and higher-margin ground transportation services.

Gross profit also increased significantly, rising 81.0% to $40.7 million, while gross margin improved from 10.0% to 16.3%. Flight profit, which excludes certain overhead costs, grew 39.9% to $58.9 million, and flight margin increased from 18.7% to 23.7%.

Segment Performance

In the Passenger segment, revenue grew 3.3% to $101.9 million. This was driven by a $1.5 million increase in the Short Distance product line, which includes helicopter and seaplane flights, as well as a $1.8 million increase in the Jet and Other product line. The Short Distance growth was primarily due to stronger performance in the Hamptons seasonal service, New York airport transfers, and Northeast helicopter charters, partially offset by the discontinuation of operations in Canada.

The Medical segment saw a 16.0% increase in revenue to $146.8 million. This was mainly attributable to $8.3 million from new hospital clients, including the new TOPS organ placement service, as well as $16.2 million in higher revenue from existing clients due to increased volume, higher revenue per trip, and more ground transportation services. These gains were partially offset by a $4.3 million decrease from a temporary customer that was only served in 2023.

Cost Management and Efficiency

Blade’s cost of revenue increased by 3.7% to $189.8 million, but as a percentage of revenue it decreased from 81% to 76%. This improvement was driven by a mix shift towards more efficient dedicated aircraft in the Medical segment, higher revenue per flight hour in Medical, and better pricing and load factors in the Passenger segment’s by-the-seat products and airport transfer services.

The company also saw decreases in several operating expense categories. Software development costs fell 31.2% to $3.2 million, as more projects reached technological feasibility and were capitalized rather than expensed. General and administrative expenses decreased 14.1% to $81.7 million, primarily due to lower impairment charges, contingent consideration costs, and intangibles amortization, partially offset by increases in stock-based compensation and costs related to the company’s owned aircraft. Selling and marketing expenses declined 23.8% to $8.0 million, driven by reduced media spend and lower commissions in the Medical segment.

Liquidity and Capital Resources

As of December 31, 2024, Blade had total liquidity of $127.1 million, consisting of $18.4 million in cash and cash equivalents and $108.8 million in short-term investments. The company believes this provides sufficient funds to meet its operational needs for at least the next 12 months.

Blade has certain contractual commitments, including minimum flight purchase guarantees with aircraft operators of $5.8 million in 2025 and $5.4 million in 2026, as well as operating lease obligations of $2.0 million in 2025 and $1.8 million in 2026. The company also has non-cancellable commitments for cloud services and other items totaling $1.0 million in 2025 and $1.6 million in 2026.

In 2024, the company used $2.5 million in cash for operating activities, primarily driven by the net loss, partially offset by non-cash items such as stock-based compensation and impairment charges. Investing activities used $1.0 million in cash, mainly for the acquisition of aircraft and capitalized software development, offset by proceeds from investment maturities. Financing activities used $5.8 million, primarily for payroll tax payments on behalf of employees in exchange for shares withheld and stock repurchases.

Outlook and Key Risks

Blade’s long-term growth strategy is focused on expanding its Passenger segment into new geographic markets, particularly dense urban areas with existing air transportation infrastructure. The company believes its asset-light business model and technology platform will enable a seamless transition to electric vertical aircraft (EVA) as they become commercially viable.

However, the development, approval, and widespread adoption of EVA technology poses a key risk. No EVA aircraft are currently certified for commercial use, and there is no guarantee that research and development will result in government-approved, market-viable EVA in a timely manner, or at all. Delays in EVA commercialization could limit Blade’s ability to reduce consumer prices and develop new vertiport infrastructure.

Other risks include Blade’s ability to attract and retain fliers in its Passenger segment, as well as its ability to secure dedicated aircraft and favorable pricing from third-party operators, particularly in the jet charter market. Inflation in operating costs, such as pilot salaries, fuel, and maintenance, could also impact the company’s profitability if it is unable to pass through these increases to customers.

Overall, Blade’s financial performance in 2024 showed significant improvements in profitability and efficiency, driven by strong growth in the Medical segment and cost management initiatives. However, the company’s long-term success will depend on its ability to navigate the evolving urban air mobility landscape and the development of next-generation aircraft technology.