Saker Aviation Reports $514,765 Net Loss and Revenue Decline in Q1 2025

Saker Aviation Services, Inc. reported a net loss of $514,765 for the three months ended March 31, 2025, a significant decline from a net income of $187,290 during the same period in 2024. Revenue from operations decreased by 5.8% to $1,260,756, down from $1,338,367 in the prior year. The decline in revenue was attributed to reduced activity levels, particularly in the sale of jet fuel and related services, which saw a decrease of approximately 5.7% year-over-year. The company's gross profit also fell by 19.1% to $511,360, resulting in a gross margin of 40.6%, compared to 47.2% in the previous year.

The company's selling, general, and administrative expenses (SG&A) surged by 133.7% to $1,007,464, primarily due to a one-time charge related to a Covenant Not To Compete agreement and increased professional fees associated with ongoing litigation regarding the operation of the Downtown Manhattan Heliport. This increase in SG&A expenses contributed to an operating loss of $496,104, a stark contrast to the operating income of $201,062 reported in the same quarter of 2024. The company also recorded a write-off of relinquished assets, net of depreciation, amounting to $104,339.

Saker Aviation's cash and cash equivalents stood at $5,303,768 as of March 31, 2025, with a working capital surplus of $9,265,051. The company generated net cash provided by operating activities of $34,789 during the quarter, a decrease from $193,497 in the prior year. Cash used in investing activities was $29,743, reflecting purchases of investments and property, offset by proceeds from the sale of investments. The company has no outstanding amounts under its revolving line of credit, which was reduced to $500,000 in November 2023.

Strategically, Saker Aviation is navigating significant changes following the termination of its Concession Agreement for the Downtown Manhattan Heliport, effective March 29, 2025. The company is currently exploring alternative revenue streams as its previous operations were solely reliant on the heliport. Additionally, Saker Aviation has entered into a Covenant Not To Compete agreement, which entails payments totaling $276,923 over the next 18 months, contingent upon compliance by the receiving party.

Looking ahead, Saker Aviation's management has indicated that the results for the first quarter of 2025 may not be indicative of future performance, as the company seeks to adapt to the loss of its primary revenue source. The ongoing litigation regarding the heliport's concession agreement may also impact the company's strategic direction and financial stability. The company remains focused on identifying new business opportunities to sustain operations and improve financial performance in the coming quarters.