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Jet.AI Q2 Revenue at $2.2M, Down 29% YoY Amid Business Transition

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Jet.AI (NASDAQ:JTAI) reported Q2 2025 financial results, highlighting a period of strategic transition. The company posted revenues of $2.2 million, down from $3.1 million year-over-year, with a reduced operating loss of $2.5 million compared to $3.2 million in Q2 2024.

Key developments include a definitive agreement with Consensus Core Technologies for hyperscale data-center development in Canada, and a capital contribution to AIIA Sponsor Ltd. for AI infrastructure opportunities. The company’s pending transaction with flyExclusive remains on schedule for completion by October 31, 2025.

As of June 30, 2025, Jet.AI maintained cash and cash equivalents of $8.3 million. The company’s strategic pivot towards data centers and AI infrastructure marks a significant transformation from its aviation business roots.

[ “Reduced operating loss to $2.5M from $3.2M year-over-year”, “Strategic expansion into AI data center sector with Consensus Core partnership”, “Strong cash position with $8.3M in cash and cash equivalents”, “flyExclusive transaction progressing on schedule” ]

Jet.AI (NASDAQ:JTAI) ha comunicato i risultati del secondo trimestre 2025, evidenziando una fase di transizione strategica. I ricavi sono stati di $2,2 milioni, in calo rispetto ai $3,1 milioni dell’anno precedente, mentre la perdita operativa si è ridotta a $2,5 milioni rispetto a $3,2 milioni nel Q2 2024.

Tra gli sviluppi principali figurano un accordo vincolante con Consensus Core Technologies per lo sviluppo di hyperscale data center in Canada e un contributo di capitale a AIIA Sponsor Ltd. per iniziative di infrastrutture AI. La transazione in corso con flyExclusive è prevista per il completamento entro il 31 ottobre 2025.

Al 30 giugno 2025 Jet.AI disponeva di $8,3 milioni in contanti e mezzi equivalenti. La strategia di focalizzarsi su data center e infrastrutture AI rappresenta una trasformazione significativa rispetto alle origini nel settore dell’aviazione.

  • Perdita operativa ridotta a $2,5M da $3,2M anno su anno
  • Espansione strategica nel settore dei data center AI con la partnership con Consensus Core
  • Posizione di cassa solida con $8,3M in contanti e equivalenti
  • Transazione con flyExclusive in corso e nei tempi previsti

Jet.AI (NASDAQ:JTAI) presentó los resultados del segundo trimestre de 2025, destacando un periodo de transición estratégica. Los ingresos fueron de $2,2 millones, frente a $3,1 millones interanuales, y la pérdida operativa se redujo a $2,5 millones desde $3,2 millones en el Q2 de 2024.

Entre los hitos clave está un acuerdo definitivo con Consensus Core Technologies para desarrollar data centers hyperscale en Canadá y una contribución de capital a AIIA Sponsor Ltd. para oportunidades de infraestructura de IA. La transacción pendiente con flyExclusive sigue en calendario para completarse antes del 31 de octubre de 2025.

Al 30 de junio de 2025, Jet.AI contaba con $8,3 millones en efectivo y equivalentes. El giro estratégico hacia centros de datos e infraestructura de IA marca una transformación significativa respecto a sus raíces en la aviación.

  • Pérdida operativa reducida a $2,5M desde $3,2M interanual
  • Expansión estratégica al sector de centros de datos de IA con la alianza con Consensus Core
  • Posición de liquidez sólida con $8,3M en efectivo y equivalentes
  • Transacción con flyExclusive avanzada según lo previsto

Jet.AI (NASDAQ:JTAI)는 2025년 2분기 실적을 발표하며 전략적 전환기를 맞이했음을 강조했습니다. 매출은 $220만으로 전년 동기 $310만에서 감소했으나, 영업손실은 $250만으로 2024년 2분기의 $320만보다 축소되었습니다.

주요 사항으로는 캐나다에서 하이퍼스케일 데이터센터 개발을 위한 Consensus Core Technologies와의 확정 계약 체결, AI 인프라 기회를 위한 AIIA Sponsor Ltd.에 대한 자본 출자가 포함됩니다. flyExclusive와의 진행 중인 거래는 2025년 10월 31일까지 완료될 예정입니다.

2025년 6월 30일 기준 Jet.AI는 $830만의 현금 및 현금성 자산을 보유하고 있습니다. 데이터센터 및 AI 인프라로의 전략적 전환은 항공 사업에서의 출발점에서 크게 변화한 것임을 의미합니다.

  • 영업손실을 전년 대비 $320만에서 $250만으로 축소
  • Consensus Core와의 파트너십을 통한 AI 데이터센터 분야 전략적 확장
  • $830만의 현금 및 현금성 자산으로 안정적 현금 상태 유지
  • flyExclusive 거래가 예정대로 진행 중

Jet.AI (NASDAQ:JTAI) a publié ses résultats du deuxième trimestre 2025, soulignant une période de transition stratégique. Le chiffre d’affaires s’élève à 2,2 M$, en baisse par rapport à 3,1 M$ l’an dernier, tandis que la perte d’exploitation a diminué à 2,5 M$ contre 3,2 M$ au T2 2024.

Parmi les faits marquants figurent un accord définitif avec Consensus Core Technologies pour le développement de centres de données hyperscale au Canada et une contribution en capital à AIIA Sponsor Ltd. pour des opportunités d’infrastructure IA. La transaction en cours avec flyExclusive devrait être finalisée d’ici le 31 octobre 2025.

Au 30 juin 2025, Jet.AI disposait de 8,3 M$ en liquidités et équivalents. L’orientation stratégique vers les centres de données et l’infrastructure IA marque une transformation importante par rapport aux activités aéronautiques d’origine.

  • Perte d’exploitation réduite à 2,5 M$ contre 3,2 M$ en glissement annuel
  • Expansion stratégique dans le secteur des centres de données IA via le partenariat avec Consensus Core
  • Position de trésorerie solide avec 8,3 M$ en liquidités et équivalents
  • Transaction avec flyExclusive en bonne voie selon le calendrier

Jet.AI (NASDAQ:JTAI) veröffentlichte die Finanzergebnisse für das 2. Quartal 2025 und hob eine Phase strategischer Umstellung hervor. Der Umsatz lag bei $2,2 Mio. gegenüber $3,1 Mio. im Vorjahr, während der operative Verlust auf $2,5 Mio. sinkt (Vorjahr: $3,2 Mio.).

Wesentliche Entwicklungen sind ein verbindlicher Vertrag mit Consensus Core Technologies zum Aufbau von Hyperscale-Rechenzentren in Kanada sowie eine Kapitalbeteiligung an AIIA Sponsor Ltd. für AI-Infrastrukturprojekte. Die noch ausstehende Transaktion mit flyExclusive soll planmäßig bis zum 31. Oktober 2025 abgeschlossen werden.

Zum 30. Juni 2025 verfügte Jet.AI über $8,3 Mio. an Barmitteln und Zahlungsmitteln. Die strategische Neuausrichtung auf Rechenzentren und AI-Infrastruktur stellt eine bedeutende Abkehr von den traditionellen Luftfahrtaktivitäten dar.

  • Operativer Verlust reduziert auf $2,5M von $3,2M im Jahresvergleich
  • Strategische Expansion in den AI-Rechenzentrumssektor durch Partnerschaft mit Consensus Core
  • Starke Liquiditätsposition mit $8,3M an Barmitteln und Zahlungsmitteln
  • Transaktion mit flyExclusive verläuft planmäßig

Negative


  • Revenue declined 29% to $2.2M from $3.1M year-over-year

  • Gross loss of $110,000 in Q2 2025

  • Decreased revenue across all major business segments

  • Operating expenses remain high at $2.4M despite revenue decline

Insights


Jet.AI’s pivot to AI data centers shows promise amid declining aviation revenues and continued losses as the company awaits flyExclusive deal closure.

Jet.AI’s Q2 2025 results reveal a company in transition, pivoting from aviation to AI infrastructure while managing declining revenues. The company reported $2.2 million in quarterly revenue, down 29% year-over-year from $3.1 million. This decline stems primarily from reduced aviation business as clients anticipate the pending flyExclusive transaction, scheduled to close by October 31, 2025.

The financial picture shows some improvement in operational efficiency despite challenges. Operating losses narrowed to $2.5 million from $3.2 million in the same quarter last year, while gross loss improved to $110,000 from $417,000. This reduction in losses comes from both decreased operational costs and strategic scaling back of aviation activities.

Cash position remains a key metric to watch with $8.3 million in cash and cash equivalents as of June 30. At the current burn rate, this provides some runway for the company’s strategic pivot, but continued losses make future financing needs likely.

The company’s strategic direction is clearly focused on AI infrastructure, evidenced by two significant developments: (1) capital contribution to AIIA Sponsor Ltd., which will sponsor a SPAC targeting AI and data center infrastructure companies, and (2) executing a definitive agreement with Consensus Core Technologies for Canadian data center development projects in Midwestern and Maritime Canada.

Management’s commentary emphasizes approaching milestones related to power infrastructure at the Midwestern Canada site and progress at the Maritime Canada location. The company appears to be executing a deliberate transition from aviation services to AI infrastructure, with the pending flyExclusive deal representing the final step in exiting their original business model.














LAS VEGAS, Aug. 15, 2025 (GLOBE NEWSWIRE) — Jet.AI (the “Company”) (Nasdaq: JTAI), a provider of high-performance GPU infrastructure and AI cloud services, today announced financial results for the second quarter ended June 30, 2025.

Recent Operational Highlights

  • Announced its capital contribution to AIIA Sponsor Ltd., which serves as the sponsor of AI Infrastructure Acquisition Corp., a special purpose acquisition company (SPAC) that intends to conduct an initial public offering and focus on opportunities with companies and/or strategic assets in high-impact private technology companies advancing artificial intelligence, machine learning capabilities, and those involved in building, operating, or enabling next-generation data center infrastructure.
  • Signed Letter of Intent (“LOI”) and later executed a definitive agreement to form a joint venture with Consensus Core Technologies Inc. (“Consensus Core”) to pursue the development of two hyperscale data-center campuses in Midwestern Canada and Maritime Canada, respectively.
  • flyExclusive transaction remains on track to close by October 31, 2025.

Second Quarter 2025 Financial Results

Revenues were $2.2 million compared to $3.1 million in the same period last year. The decrease was primarily due to a reduction in Cirrus Charter and Jet Card revenue which stemmed mainly from clients, prospects and vendors anticipating the sale of the Company’s aviation business to flyExclusive, as well as reduced flying by our management clients, partially offset by an increase in Software App revenue.

Software App and Cirrus Charter revenue, the gross amount of charters booked through CharterGPT and Cirrus, was $1.3 million compared to $1.6 million in the same period last year.

Management and Other Services revenue, which is comprised of revenues generated from managing and chartering the Company’s customer aircraft, totaled $533,000 compared to $914,000 in the same period last year.

Jet Card and Fractional Programs revenue, which is generated from the sale and use of jet cards and service revenue related to ongoing utilization by the Company’s fractional customers, totaled $421,000 compared to $559,000 in the same period last year.

Cost of revenues totaled $2.3 million compared to $3.5 million in the same period last year. The decrease was primarily due to decreased Cirrus charter flight activity and a decrease in merchant fees and federal excise tax relating to charter flights.

Gross loss totaled approximately $110,000 compared to $417,000 in the same period last year. The reduced gross loss was largely driven by the scale-back in operations during the quarter.

Operating expenses totaled $2.4 million compared to $2.8 million in the same period last year. The decrease was primarily due to a decrease in general and administrative expenses and sales and marketing expenses.

Operating loss was approximately $2.5 million compared to a loss of $3.2 million in the same period last year. The decrease was primarily due to the aforementioned reduced gross loss and decrease in operating expenses for the quarter.

As of June 30, 2025, the Company had cash and cash equivalents of approximately $8.3 million.

Six Months 2025 Financial Results

Revenues for the six months ended June 30, 2025 were $5.7 million compared to $6.9 million in the same period last year. The decrease was primarily due to decreases in Software App and Cirrus Charter revenue, Jet Card Revenue, but partially offset by increased Management and Other Services revenues.

Software App and Cirrus Charter revenue for the six months ended June 30, 2025 was $3.1 million compared to $4.0 million in the same period last year.

Management and Other Services revenue for the six months ended June 30, 2025 totaled $1.8 million compared to $1.7 million in the same period last year.

Jet Card and Fractional Programs revenue for the six months ended June 30, 2025 totaled $765,000 compared to $1.2 million in the same period last year.

Cost of revenues for the six months ended June 30, 2025 totaled $5.9 million compared to $7.5 million in the same period last year. The decrease was primarily due to a decrease in payments to Cirrus for aircraft management and operations tied to reduced flight activity, a decrease in third-party charter costs reflecting lower software-related revenue and reduced reliance on subcharters for Jet Card flights, and a decrease in federal excise taxes and merchant fees associated with charter flights.

Gross loss for the six months ended June 30, 2025 totaled approximately $226,000 compared to $541,000 in the same period last year, reflecting lower maintenance costs and pilot wages, as well as lower utilization of the Company’s HondaJet Elites, partially offset by stable fixed costs.

Operating expenses for the six months ended June 30, 2025 totaled $5.4 million compared to $5.8 million in the same period last year. The decrease was primarily due to a decrease in general and administrative expenses and sales and marketing expenses.

Operating loss for the six months ended June 30, 2025 was approximately $5.7 million compared to a loss of $6.4 million in the same period last year. The decrease was primarily due to the aforementioned reduced gross loss and decrease in operating expenses for the quarter.

Management Commentary

Founder and Executive Chairman Mike Winston stated: “We continue to make encouraging progress across our Canadian data center project in partnership with Consensus Core. This past quarter, we executed a definitive agreement for the phased development of the Midwestern and Maritime projects, respectively. There, we outlined five strategic milestones which we intend to achieve and announce in sequence as the project progresses. To that end, we are now approaching the announcement of two upcoming milestones: one related to power at the Midwestern Canada site, and another reflecting further progress at the Maritime Canada site.

“Consistent with our pivot toward data centers, we recently announced a capital contribution toward AIIA Sponsor, an entity serving as a sponsor of AI Infrastructure Acquisition Corp. founded by certain members of our executive officers and directors. AI Infrastructure Acquisition Corp. is a SPAC targeting opportunities with private companies specializing in AI, machine learning, and data center infrastructure operations. Through our contribution, once the deal is closed, we will hold an equity interest that will not only strengthen Jet.AI’s book equity but will reinforce our position in the AI data center sector. Beyond our data center projects, our agreement with flyExclusive remains on track to close by the recently extended outside date of October 31, 2025.”

About Jet.AI

Founded in 2018 and is based in Las Vegas, NV, Jet.AI currently operates in two segments, Software and Aviation, and is transitioning to a pure-play AI data center company. Leveraging a leadership team with deep expertise in data center development and AI-driven technologies, Jet.AI intends to build a scalable, high-performance infrastructure to support the increasing computational demands of artificial intelligence. Our suite of AI-powered tools stems from our origin as an aviation company, and leverages natural language processing technologies to enhance efficiency, optimize operations, and streamline the private jet booking experience.

Forward-Looking Statements

This press release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, with respect to the products and services offered by Jet.AI and the markets in which it operates, and Jet.AI’s projected future results. Statements that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our Company, our industry, our beliefs and our assumptions. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions or the negative of these terms or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that could cause the actual results to differ materially from the expected results. As a result, caution must be exercised in relying on forward-looking statements, which speak only as of the date they were made. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in the Company’s most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements, and Jet.AI assumes no obligation and does not intend to update or revise these forward-looking statements, whether because of new information, future events, or otherwise, except as provided by law.

Jet.AI Investor Relations:
Gateway Group, Inc.
949-574-3860
Jet.AI@gateway-grp.com

JET.AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

    June 30,     December 31,  
    2025     2024  
             
Assets                
Current assets:                
Cash and cash equivalents   $ 8,265,732     $ 5,872,627  
Accounts receivable     112,079       132,230  
Note receivable – related party     35,995        
Deferred offering costs     45,000        
Other current assets     199,706       357,751  
Total current assets     8,658,512       6,362,608  
                 
Property and equipment, net     3,780       5,055  
Intangible assets, net     86,745       86,745  
Right-of-use lease asset     780,499       1,048,354  
Investment in joint venture     100,000       100,000  
Deposit on aircraft     4,050,000       2,400,000  
Deposits and other assets     785,561       794,561  
Total assets   $ 14,465,097     $ 10,797,323  
                 
Liabilities and Stockholders’ Equity                
Current liabilities:                
Accounts payable   $ 367,361     $ 280,450  
Accrued liabilities     1,362,654       1,663,338  
Deferred revenue     647,857       1,319,746  
Operating lease liability     533,480       525,547  
Total current liabilities     2,911,352       3,789,081  
                 
Lease liability, net of current portion     227,044       495,782  
Total liabilities     3,138,396       4,284,863  
                 
Commitments and contingencies (Note 2 and 6)            
                 
Stockholders’ Equity                
Preferred Stock, 4,000,000 shares authorized,
 par value $0.0001, 0 issued and outstanding
           
Series B Convertible Preferred Stock, 5,000 shares authorized,
 par value $0.0001, 989 and 250 issued and outstanding
           
Common stock, 200,000,000 shares authorized, par value $0.0001,
 3,261,701 and 1,629,861 issued and outstanding
    326       162  
Subscription receivable     (6,724 )     (6,724 )
Additional paid-in capital     69,434,004       59,065,100  
Accumulated deficit     (58,100,905 )     (52,546,078 )
Total stockholders’ equity     11,326,701       6,512,460  
Total liabilities and stockholders’ equity   $ 14,465,097     $ 10,797,323  


JET.AI, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2025     2024     2025     2024  
                         
Revenues   $ 2,225,900     $ 3,083,884     $ 5,700,538     $ 6,932,482  
                                 
Cost of revenues     2,336,200       3,500,880       5,926,352       7,473,834  
                                 
Gross loss     (110,300 )     (416,996 )     (225,814 )     (541,352 )
                                 
Operating Expenses:                                
General and administrative (including stock-based compensation
 of $763,132, $1,201,728, $1,314,068, and $2,401,046,
 respectively)
    2,246,980       2,663,753       4,899,407       5,210,047  
Sales and marketing     81,601       102,470       376,009       549,070  
Research and development     41,044       37,396       149,968       69,942  
Total operating expenses     2,369,625       2,803,619       5,425,384       5,829,059  
                                 
Operating loss     (2,479,925 )     (3,220,615 )     (5,651,198 )     (6,370,411 )
                                 
Other (income) expense:                                
Interest expense                       79,314  
Other (income) expense     (94,902 )     (59 )     (96,371 )     (120 )
Total other (income) expense     (94,902 )     (59 )     (96,371 )     79,194  
                                 
Loss before provision for income taxes     (2,385,023 )     (3,220,556 )     (5,554,827 )     (6,449,605 )
                                 
Provision for income taxes                        
                                 
Net Loss   $ (2,385,023 )   $ (3,220,556 )   $ (5,554,827 )   $ (6,449,605 )
                                 
Cumulative preferred stock dividends           29,727             59,455  
                                 
Net Loss to common stockholders   $ (2,385,023 )   $ (3,250,283 )   $ (5,554,827 )   $ (6,509,060 )
                                 
Weighted average shares outstanding – basic and diluted     2,583,667       57,362       2,315,946       54,331  
Net loss per share – basic and diluted   $ (0.92 )   $ (56.66 )   $ (2.40 )   $ (119.80 )


JET.AI, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

    Six Months Ended  
    June 30,  
    2025     2024  
             
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss   $ (5,554,827 )   $ (6,449,605 )
Adjustments to reconcile net loss to net cash used in
 operating activities:
               
Amortization and depreciation     1,275       67,626  
Amortization of debt discount           80,761  
Stock-based compensation     1,314,068       2,401,046  
Non-cash operating lease costs     267,855       260,157  
Changes in operating assets and liabilities:                
Accounts receivable     20,151       (439,436 )
Other current assets     158,045       117,302  
Deferred offering costs     (45,000 )      
Accounts payable     86,911       (141,764 )
Accrued liabilities     (300,684 )     331,915  
Deferred revenue     (671,889 )     (680,328 )
Operating lease liability     (260,805 )     (253,107 )
Net cash used in operating activities     (4,984,900 )     (4,705,433 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Advances under related party promissory note     (35,995 )      
Purchase of intangible assets           (12,921 )
Deposit on aircraft     (1,650,000 )      
Deposits and other assets     9,000       (100 )
Net cash used in investing activities     (1,676,995 )     (13,021 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Repayments of notes payable           (371,250 )
Repayments of related party notes payable           (297,500 )
Offering costs     (1,945,000 )     (155,000 )
Proceeds from exercise of common stock warrants           742,474  
Proceeds from exercise of Series B Convertible Preferred Stock warrants     11,000,000        
Proceeds from sale of Series B Preferred Stock           1,500,025  
Proceeds from sale of Common Stock           1,727,279  
Net cash provided by financing activities     9,055,000       3,146,028  
                 
Increase (decrease) in cash and cash equivalents     2,393,105       (1,572,426 )
Cash and cash equivalents, beginning of period     5,872,627       2,100,543  
Cash and cash equivalents, end of period   $ 8,265,732     $ 528,117  
                 
Supplemental disclosures of cash flow information:                
Cash paid for interest   $     $ 79,314  
Cash paid for income taxes   $     $  
                 
Non-cash financing activities:                
Issuance of Common Stock for Series B Preferred Stock conversion   $ 146     $  










FAQ



What were Jet.AI’s (JTAI) Q2 2025 earnings results?


Jet.AI reported Q2 2025 revenue of $2.2 million, down from $3.1 million year-over-year, with an operating loss of $2.5 million. The company maintained $8.3 million in cash as of June 30, 2025.


What is Jet.AI’s partnership with Consensus Core Technologies?


Jet.AI signed a definitive agreement with Consensus Core to develop two hyperscale data-center campuses in Midwestern Canada and Maritime Canada, marking a strategic pivot towards AI infrastructure.


When will the Jet.AI and flyExclusive transaction close?


The flyExclusive transaction is expected to close by October 31, 2025, according to the company’s latest update.


What is Jet.AI’s involvement with AIIA Sponsor Ltd.?


Jet.AI made a capital contribution to AIIA Sponsor Ltd., which sponsors AI Infrastructure Acquisition Corp., a SPAC targeting opportunities in AI, machine learning, and data center infrastructure companies.


How did Jet.AI’s different business segments perform in Q2 2025?


All segments saw declines: Software App and Cirrus Charter revenue was $1.3M (down from $1.6M), Management Services revenue was $533,000 (down from $914,000), and Jet Card revenue was $421,000 (down from $559,000).








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More than 500 workers at Voice of America and other broadcasters to be laid off | Trump administration

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The agency that oversees Voice of America and other government-funded international broadcasters is eliminating jobs for more than 500 employees, a Trump administration official said. The move could ratchet up a months-long legal challenge over the news outlets’ fate.

Kari Lake, acting CEO of the US Agency for Global Media, announced the latest round of job cuts late Friday, one day after a federal judge blocked her from removing Michael Abramowitz as VOA director.

US district judge Royce Lamberth had ruled separately that the Republican administration had failed to show how it was complying with his orders to restore VOA’s operations. His order Monday gave the administration “one final opportunity, short of a contempt trial” to demonstrate its compliance. He ordered Lake to sit for a deposition by lawyers for agency employees by 15 September.

On Thursday, Lamberth said Abramowitz could not be removed without the approval of the majority of the International Broadcasting Advisory Board. Firing Abramowitz would be “plainly contrary to law”, according to Lamberth, who was nominated to the bench by Ronald Reagan.

Lake posted a statement on social media that said her agency had initiated a reduction in force, or RIF, eliminating 532 jobs for full-time government employees. She said the agency “will continue to fulfill its statutory mission after this RIF– and will likely improve its ability to function”.

“I look forward to taking additional steps in the coming months to improve the functioning of a very broken agency and make sure America’s voice is heard abroad where it matters most,” she wrote.

A group of agency employees who sued to block VOA’s elimination said Lake’s move would give their colleagues 30 days until their pay and benefits end.

“We find Lake’s continued attacks on our agency abhorrent,” they said in a statement. “We are looking forward to her deposition to hear whether her plan to dismantle VOA was done with the rigorous review process that Congress requires. So far we have not seen any evidence of that.”

They added: “We will continue to fight for what we believe to be our rights under the law.”

In June, layoff notices were sent to more than 600 agency employees. Abramowitz was placed on administrative leave along with almost the entire VOA staff. He was told he would be fired effective 31 August.

The administration said in a court filing Thursday that it planned to send RIF notices to 486 employees of VOA and 46 other agency employees but intended to retain 158 agency employees and 108 VOA employees. The filing said the global media agency had 137 “active employees” and 62 other employees on administrative leave while VOA had 86 active employees and 512 others on administrative leave.

The agency also houses Radio Free Europe/Radio Liberty, Radio Free Asia, Middle East Broadcasting Networks and Radio Martí, which beams Spanish-language news into Cuba. The networks, which together reach an estimated 427 million people, date to the cold war and are part of a network of government-funded organizations trying to extend US influence and combat authoritarianism.

In March, Abramowitz warned that Trump’s attempts to dismantle the VOA would be a “self-inflicted blow” to American national security, saying: “If America pulls off the playing field and cedes it to our adversaries, then they’re going to be telling the narratives that people around the world are going to be hearing, and that can’t be good for America … They’re going to be hearing an anti-America narrative. We need to fight that with truth.”

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He added: “The major challenge for the United States in general is this global information war in which countries like China and Russia are essentially really having our lunch. … So, I really feel that we need an organization that is accurate, unbiased, objective, and that tells the truth about America to the rest of the world in the languages that they understand.”

This week, Trump also moved to remove union protections from a handful of federal employees, including those from the VOA.

In response, the American Federation of State, County and Municipal Employees, the nation’s largest trade union of public employees, said: “AFSCME members who fulfill the Congressionally mandated mission to broadcast Voice of America around the globe shine the beacon of freedom on the most oppressive of regimes. Now, because they have been fighting to keep Voice of America’s mission alive, their own voice on the job has been stripped from them. AFSCME will fight this illegal action in court.”

Earlier this year, foreign staff at US-backed media outlets voiced concerns over their safety following Trump’s shuttering of the global media agencies.

Speaking to the Guardian in March, Jaewoo Park, a journalist for Radio Free Asia, said: “We have many co-workers in different services, several of whom came here and sought asylum visas. If their own government knew they worked for RFA [Radio Free Asia] and they went back to their own country, their lives would be at risk.”

“Authoritarian governments have praised what Trump is doing right now … In Burma, Vietnam, Laos, Cambodia, there were people who fought for freedom and democracy, and they came to work at RFA. It’s very risky for them. Their lives are in danger if Radio Free Asia doesn’t exist,” he added.



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Vineyards assess damage as wildfire rips through California wine country: ‘A devastating situation’ | California wildfires

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Elton Slone and his colleagues at the Robert Craig Winery in Napa Valley had gathered for their annual pre-harvest company party last week – complete with copper pot carnitas and grape tacos – when one of his co-workers noticed an alert on her phone. The Pickett fire, a blaze that had started about 10 miles away near the town of Calistoga, was moving toward their vineyards on Howell Mountain.

Knowing that the Glass fire – a 2020 blaze that damaged numerous wineries and spoiled a year’s harvest – had burned along the same path, Slone hoped no fuel remained for this new fire. “But that was not the case,” he said. Within the week, the winery’s Candlestick Vineyard would become “a sacrificial lamb for the town of Angwin” when firefighters lit a controlled burn on their property to control the larger fire.

Vineyards can make excellent fire breaks because they are typically clear of burnable plant matter, and grape vines themselves are moist enough to be nonflammable. But heat damage and smoke can still destroy a crop.

The Robert Craig Winery lost the entire crop of their Candlestick Vineyard, which would have generated $4.5m in revenue. And Slone estimates about 10% of the vines will need to be replanted – a process that will cost hundreds of thousands of dollars and take a decade to see new bottles of wine ready for market. The team will test grapes on another one of their vineyards closer to harvest to see whether the smoke affected them.

The Pickett fire burns on a ridge above a vineyard in Pope valley, California, on 22 August 2025. Photograph: San Francisco Chronicle/Hearst Newspapers/Getty Images

The loss comes at the end of the growing season – after Slone’s vineyard had sunk nearly $1m into farming costs – and is made even more devastating because it’s happened before. The memories of the 2020 Glass fire and 2018 Camp fire, which burned farther east but still sent smoke to blanket Napa’s grapevines, are still fresh. “It’s financially a devastating situation,” said Slone.

The still-burning Pickett fire, which began on 21 August in northern Napa county, quickly burned through 6,800 acres (2,750 hectares), making it the San Francisco Bay Area’s largest wildfire this year. Preliminary estimates show that it caused $65m in agricultural losses, largely to wine grape growers, affecting about 1,500 acres (610 hectares) of agricultural land.

Although that damage is significantly less than that wrought by the Glass fire – which burned through 67,000 acres (27,000 hectares) and racked up $3.7bn in losses – the growing threat of wildfires in arid California has still shaken the wine industry.

“Northern California wine country is one of the treasures of the United States,” said Slone. “It’s something that I think all Americans should be concerned about because it’s a uniquely American thing.”

‘Tastes like a campfire’

Along the west coast, wine grape growers have implemented many strategies to prepare for wildfires – with the support of scientists at the US Department of Agriculture and local universities.

Ben Montpetit, chair of the University of California, Davis’s viticulture and enology department, said in an emailed statement that the industry has employed “barrier sprays to reduce smoke uptake, annual testing to establish baseline smoke marker levels in grapes, and small-lot fermentations after smoke events to assess potential wine impact”.

“Researchers are also investigating which grape cultivars are more sensitive or tolerant to smoke exposure,” he added.

“We’ve made a lot of progress in the preparedness realm,” said Natalie Collins, president of the California Association of Winegrape Growers, who noted the industry established a smoke exposure taskforce after the losses in 2018 to aid growers after wildfires.

A firefighting helicopter drops water on the Pickett fire in the hills near a vineyard on 21 August 2025 in Calistoga, California. Photograph: Justin Sullivan/Getty Images

The existence of that taskforce hints at a perennial problem for vineyards: though they can often keep wildfire off their acres, there’s little that can keep smoke at bay. And if smoke sits in an area for too long, it can leave grapes tasting ashy, like a campfire.

“Smoke taint issues are kind of fickle,” said Heather Griffin, a partner at Summit Lake Vineyards and Winery. “It depends on the varietal, depends on your ripeness level and depends on how long the exposure was.”

Griffin’s family’s vineyards were saved from the Pickett fire – “They stopped the fire at the end of our ridge up on Howell Mountain,” she said – but they’ll need to send grapes out for testing before harvest to be sure the smoke didn’t taint it.

Protecting the industry

For the first year ever, crop insurers are offering a new coverage option called the fire insurance protection smoke index endorsement, which would insure vineyards for losses due to smoke exposure.

But some growers say the cost of crop insurance has become unattainable after repeated wildfires.

“Our insurance went up so much after the fires of 2020. It literally went from $40,000 a year for really great coverage for all of our properties and inventory, and now it’s $300,000 a year and covers nothing,” said Slone.

For the 95% of Napa valley’s wineries that are family-owned, that cost can be “catastrophic”, he adds.

The wine industry has historically relied on federal funding to support USDA and university research into wildfire preparedness. Although those levels have remained steady despite widespread federal cuts, eight federal wine grape research scientists – including a smoke exposure specialist – were fired and then rehired early in the Trump administration’s Doge-era cuts.

“We want to make sure that an industry like ours continues to be protected,” said Collins, as “we continue to see the writing on the wall in California that wildfires likely will continue to be an issue here.”

It’s possible that some federal disaster relief funding may work its way to affected vineyards, but Griffin says buying wine from those wineries “helps everybody that’s up here”.

“Shoot them an email and buy some of their wine,” added Slone. “They will be the most appreciative people on the planet earth.”



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Here’s what to know about the court ruling striking down Trump’s tariffs | Trump tariffs

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Donald Trump suffered the biggest defeat yet to his tariff policies on Friday, as a federal appeals court ruled he had overstepped his presidential powers when he enacted punitive financial measures against almost every country in the world.

In a 7-4 ruling, the Washington DC court said that while US law “bestows significant authority on the president to undertake a number of actions in response to a declared national emergency”, none of those actions allow for the imposition of tariffs or taxes.

It means the ultimate ruling on the legality of Trump’s tariffs, which were famously based on spurious economic science and rocked the global economy when he announced them in April, will probably be made by the US supreme court.

Here’s what to know.

Which tariffs did the court knock down?

The decision centers on the tariffs Trump introduced on 2 April, on what he called “liberation day”. The tariffs set a 10% baseline on virtually all of the US’s trading partners and so-called “reciprocal” tariffs on countries he argued have unfairly treated the US. Lesotho, a country of 2.3 million people in southern Africa, was hit with a 50% tariff, while Trump also announced a tariff of 10% on a group of uninhabited islands populated by penguins.

The ruling voided all those tariffs, with the judges finding the president’s measures “unbounded in scope, amount and duration”. They said the tariffs “assert an expansive authority that is beyond the express limitations” of the law his administration used to pass them.

Tariffs typically need to be approved by Congress, but Trump claimed he has the right to impose tariffs on trading partners under the International Emergency Economic Powers Act (IEEPA), which in some circumstances grants the president authority to regulate or prohibit international transactions during a national emergency.

The court ruled: “It seems unlikely that Congress intended, in enacting IEEPA, to depart from its past practice and grant the president unlimited authority to impose tariffs.”

Trump invoked the same law in February to impose tariffs on Canada, Mexico and China, claiming that the flow of undocumented immigrants and drugs across the US border amounted to a national emergency, and that the three countries needed to do more to stop it.

Are the tariffs gone now?

No. The court largely upheld a May decision by a federal trade court in New York that ruled Trump’s tariffs were illegal. But Friday’s ruling tossed out a part of that ruling that would have struck down the tariffs immediately.

The court said the ruling would not take effect until 14 October. That allows the Trump administration time to appeal to the majority-conservative US supreme court, which will have the ultimate say on whether Trump has the legal right, as president, to upend US trade policy.

What does this mean for Trump’s trade agenda?

The government has argued that if Trump’s tariffs are struck down, it might have to refund some of the import taxes that it has collected, which would deliver a financial blow to the US treasury.

Revenue from tariffs totaled $159bn by July, more than double what it was at the same point last year. The justice department warned in a legal filing this month that revoking the tariffs could mean “financial ruin” for the United States.

The ruling could also put Trump on shaky ground in trying to impose tariffs going forward. The president does have alternative laws for imposing import tariffs, but they would limit the speed and severity with which he could act.

In its decision in May, the trade court said that Trump has more limited power to impose tariffs to address trade deficits under another statute, the Trade Act of 1974. But that law restricts tariffs to 15% and to just 150 days on countries with which the United States runs big trade deficits.

How has Trump responded

He’s not happy. Trump spent Friday evening reposting dozens of social media posts that were critical of the court’s decision. In a post on his own social media site, Trump claimed, as he tends to do when judges rule against him, that the decision was made by a “highly partisan appeals court”.

“If these Tariffs ever went away, it would be a total disaster for the Country,” Trump wrote. He added: “If allowed to stand, this Decision would literally destroy the United States of America.”

Trump claimed “tariffs are the best tool to help our workers”, despite their costs being typically borne by everyday Americans. The tariffs have triggered economic and political uncertainty across the world and stoked fears of rising inflation.



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