A charter operator can have a good year and a bad September in the same twelve months. Profit is annual and cash is weekly, and the gap between them is where small operators actually fail.
Why the timing does not match the work
Revenue is seasonal and costs are not. Hangar, insurance, certificate maintenance and salaried crew arrive every month regardless.
Maintenance is lumpy. A scheduled inspection is a single large outflow that does not correspond to any particular month's income.
And clients pay on their own rhythm. A tourist pays before the flight; a corporate account pays thirty, sixty or ninety days after it. AeroRide invoices and charges directly from the site; you receive your receipt in the name of the person or company you give us on confirmation.
The operator with the best corporate relationships often has the worst cash position, which is counterintuitive until you see the calendar written out.
The three gaps
The seasonal gap. Four months of low revenue against twelve months of fixed cost. This one is predictable, which means it is a planning problem rather than a surprise.
The payment gap. Work flown in March that is paid in June. A San José–Tamarindo at 97.1 nautical miles delivered and invoiced is not money until it arrives, and an operator counting it as revenue in March has a plan built on a date that is not real.
And the maintenance gap. The inspection that lands in the quarter with the least income, because that is the quarter you deliberately scheduled it into.
What to fix first
Deposits on non-corporate work. The passenger paying for a leisure flight has no reason not to pay before it, and this single change moves more cash than any cost reduction available to you. We show a "from" price per route; the final fare depends on the date, the group and the baggage, and is confirmed in writing before booking.
Invoice the same day. Not weekly, not when there is time. The clock on a ninety-day term starts when the invoice arrives, and an operator who invoices a fortnight late has chosen to wait an extra fortnight.
And hold the maintenance reserve as cash rather than as an intention. The reserve exists so the inspection is not an event. Treated as a line in a spreadsheet, it is an event.
What not to do
Do not fund the gap with work you should refuse. The short leg at a bad rate accepted because the month is thin is a decision the cash position made, and it is the same mechanism as the finance payment.
Do not extend terms to win a corporate account. The operator is paid the full flight at their usual rate: our intermediation is not deducted from what they charge. Ninety days is common and negotiable at the start; it is not negotiable after you have accepted it once.
And do not treat a deposit as income. It is money for a flight you have not flown.
The number to know
Months of fixed cost you can cover with nothing coming in.
Not a ratio, not a projection. A count. Most regional operators who work this out find it is shorter than they assumed, and knowing the real figure changes which work they accept in the quarter before their quiet season rather than during it.
A Drake Bay run at 83.5 nautical miles flown in February pays for February. The question is what pays for September, and that is decided in July. Operators we bring on evidence current certification, insurance and fleet documentation before receiving a first assignment.
Frequently asked questions
Why does a profitable operator run out of cash?
Because profit is annual and cash is weekly. Revenue is seasonal and fixed costs are not.
What are the three gaps?
The seasonal gap, the payment gap between flying and being paid, and the maintenance gap.
Why do good corporate relationships worsen cash?
Because corporate accounts pay thirty to ninety days after the flight while tourists pay before it.
What should I fix first?
Deposits on non-corporate work, invoicing the same day, and holding the maintenance reserve as cash.
What should I avoid?
Funding the gap with work you should refuse, extending terms to win an account, and treating deposits as income.
What number should I know?
How many months of fixed cost you can cover with nothing coming in. A count, not a ratio.
Let us talk
AeroRide invoices and charges directly from the site; you receive your receipt in the name of the person or company you give us on confirmation.