Vistajet Future

[falcon10]

https://privatejetcardcomparisons.co...k-to-negative/

Vista’s S&P Global Ratings-adjusted EBITDA declined by 4% to about $670 million in 2023, compared with our previous forecast of an increase to $820 million-$850 million. We include nonrecurring costs and exclude gains on aircraft sales in our calculation of adjusted EBITDA. Revenue was materially weaker than we forecast, primarily in the on-fleet on-demand and third-party marketplace segments, but with continued strong growth in subscription program revenue, in line with the company’s strategy. Demand for private charter flights in North America and Europe was softer than we anticipated, but we understand that Vista outperformed the broader market. Vista’s refurbishment program for jets acquired in 2022 affected the fleet’s availability and revenue in 2023. Furthermore, higher staff costs contributed to the reduction of our adjusted EBITDA figure. In addition, higher debt and interest rates led to adjusted interest paid (including refinancing costs) almost doubling to $324 million, and tighter supplier terms led to a working capital outflow of $67 million. As a result, Vista’s adjusted FFO to debt reduced to about 7% in 2023 from 11% in 2022 and is now well below our threshold of above 12% for the B+ rating.