Global Crossing Airlines Reports First Quarter 2024 Financial Results

Second consecutive quarter of accelerating Y/Y revenue growth
Plans to expand fleet by more than 40% to 20 aircraft this summer

MIAMI, May 06, 2024 (GLOBE NEWSWIRE) -- Global Crossing Airlines Group, Inc. (Cboe CA: JET, Cboe CA: JET.B, OTCQB: JETMF) (the “Company” or “GlobalX”), the Nation's fastest growing charter airline, today announced its financial and operating results for the first quarter ended March 31, 2024. All figures are in United States dollars and prepared in accordance with U.S. GAAP.

Financial and Operational Summary
	Q1 2024	Q1 2023	% Change
Revenue:	$53.8M	$32.2M	67%
EBITDAR1:	$9.3M	$0.6M	~16x
Net Aircraft Available:	12.5	7.8	60%
Total Block Hours:	5,200	3,134	66%
Average Utilization Per Aircraft:	416	402	4%

“The first quarter of 2024 signifies a robust commencement and the dawn of a new era for GlobalX,” said Chris Jamroz, Executive Chairman of GlobalX. “Since our inception in 2019, GlobalX has demonstrated a consistent ability to swiftly integrate new aircraft into revenue-generating charter operations, propelling us to become the nation’s premier charter airline. Moving ahead, we remain steadfast in our commitment to leveraging our expertise as a narrow-body ACMI charter carrier to drive enduring profitability.”

GlobalX President and CFO, Ryan Goepel, commented: “We achieved another quarter of robust growth, while reducing OPEX as a percentage of operating revenue by more than 840 basis points compared to Q1 2023. As Chris stated, going forward we are focusing our efforts on what we do best, and during the quarter we made several necessary adjustments to the organization to facilitate this transition.”

Mr. Goepel continued: “Subsequent to quarter end, we were pleased to receive U.S. DOT authorization to expand our fleet to 20 aircraft, a level we intend to reach by this summer. Additionally, we have continued to deepen our relationship with a key government client that is now chartering over 1,000 block hours per month. We are still in the early innings of this new chapter for GlobalX, however we are well-positioned to continue expanding the business as we execute on our profitable growth objectives.”

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¹ Refer below to the section “Non-GAAP Financial Measures” for additional information

Q1 2024 Financial Highlights (vs. Q1 2023)

• Revenue: Revenue increased 67% to $53.8 million compared to $32.2 million. The increase was driven primarily by higher block hours flown and aircraft fleet expansion, as well as continued strong demand for passenger ACMI and Charter flights.
  
  
• Total Operating Expenses: Operating Expenses were $58.4 million compared to $37.7 million. The increase was primarily due to higher aircraft rent, maintenance, and personnel costs associated with the expansion of the GlobalX fleet, as well as higher travel costs related to a government contract. In addition, the Company had approximately $1 million of expenses and charges related to unwinding non-core businesses and other one-time items in the quarter.
  
  
• Net Income (Loss)/EPS: Net Loss was $6.3 million compared to $6.1 million. Loss per Share remained unchanged at ($0.11) per basic and diluted share, compared to ($0.11) per basic and diluted share.
  
  
• EBITDAR: EBITDAR increased approximately 16x to $9.3 million compared to $0.6 million. The increase was primarily driven by increased revenue, improved operating margins, higher average charter rates and higher utilization of aircraft.
  

Operational Highlights

• Received authorization from US Department of Transportation to increase the Company’s fleet to 20 aircraft
• Grew government contracts to eight dedicated aircraft
• Took delivery of two additional aircraft; one A320 passenger aircraft and one A321F Cargo aircraft
  

Liquidity

• Cash and Restricted Cash: The Company had $12.1 million in Cash and Restricted Cash at March 31, 2024, compared to Cash and Restricted Cash of $17.7 million at December 31, 2023.
  

Conference Call

The GlobalX management team will host a conference call tomorrow, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing [e-mail].

Date: Tuesday, May 7, 2024
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: [phone]
International dial-in number: [phone]
Conference ID: 13746125
Webcast: GlobalX's Q1 2024 Conference Call

If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at [phone].

The conference call will also be available for replay on the investor relations section of the Company’s website at www.globalairlinesgroup.com.

About Global Crossing Airlines

GlobalX is a US 121 domestic flag and supplemental Airline flying the Airbus A320 family aircraft. GlobalX flies as a passenger ACMI and charter airline serving the US, Caribbean, European and Latin American markets. GlobalX is also now operating ACMI cargo service flying the A321 freighter. For more information, please visit www.globalxair.com.

For more information:

Company Contact
Ryan Goepel, President & CFO
Tel: [phone]

Investor Relations Contact
Sean Mansouri, CFA or James Bonifer
Email: [e-mail]

Non-GAAP Financial Measures

The Company evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures, including Adjusted operating expenses, adjusted operating income (loss), Adjusted operating margin, adjusted pre-tax income (loss), Adjusted pre-tax margin, Adjusted net income (loss), Adjusted diluted earnings (loss) per share, adjusted EBITDA and adjusted EBITDAR. These non-GAAP financial measures are provided as supplemental information to the financial information presented in this press release that is calculated and presented in accordance with GAAP and these non-GAAP financial measures are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past and future periods.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in the method of calculation and in the items being adjusted. We encourage investors to review our financial statements and other filings with the Securities and Exchange Commission in their entirety and not to rely on any single financial measure.

The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release (other than forward-looking non-GAAP financial measures) to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Per unit amounts presented are calculated from the underlying amounts.

EBITDAR which is defined Operating income (loss), plus depreciation, amortization, interest, taxes and aircraft rent is an important metric to be considered to allow investors to compare results across different airlines regardless of how the airlines acquired their aircraft. This distinction is important when comparing the operational results of an airline leasing its aircraft versus an airline purchasing its aircraft. Specifically, the airline leasing aircraft would see the costs relating to those aircraft flow through aircraft rent, while an airline that owns their aircraft would see their costs for those aircraft flow through depreciation and amortization. In order to compare the operating results of the two airlines an investor needs to look at EBITDAR which is why it is presented.

EBITDAR Reconciliation (in thousands)	Three Months Ended March 31, 2024			Three Months Ended March 31, 2023
Operating Loss	$	(4,619	)	$	(5,530	)
Depreciation and amortization		1,166			443
EBITDA		(3,453	)		(5,087	)
Aircraft Rent		12,761			5,644
EBITDAR		9,308			557

Cautionary Note Regarding Forward-Looking Information

This news release contains certain “forward-looking statements” and “forward-looking information”, as defined under applicable United States and Canadian securities laws, concerning anticipated developments and events that may occur in the future. Forward-looking statements contained in this news release include, but are not limited to, statements with respect to the Company’s aircraft fleet size and the expected growth to 20 aircraft by summer 2024, the Company’s status as the Nation’s fastest growing charter airline, profitability, robust growth, expansion of the business and the Company’s objectives, and the Company’s growth plans.

In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking statements contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to continue airline operations, the accuracy, reliability and success of GlobalX’s business model; GlobalX’s ability to accurately forecast demand; GlobalX will be able to successfully conclude definitive agreements for transactions subject to LOI; the timely receipt of governmental approvals; the success of airline operations of GlobalX; GlobalX’s ability to successfully enter new geographic markets; the legislative and regulatory environments of the jurisdictions where GlobalX will carry on business or have operations; the Company has or will have sufficient aircraft to provide the service; the impact of competition and the competitive response to GlobalX’s business strategy; the future price of fuel, and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include risks related to, the ability to obtain financing at acceptable terms, the impact of general economic conditions, risks related to supply chain and labor disruptions, failure to retain or obtain sufficient aircraft, domestic and international airline industry conditions, failure to conclude definitive agreements for transactions subject to LOI, the effects of increased competition from our market competitors and new market entrants, passenger demand being less than anticipated, the impact of any resurgence of COVID-19, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, risks associated with doing business in foreign countries, the ability of management to implement GlobalX’s operational strategy, the ability to attract qualified management and staff, labor disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits; risks related to significant disruption in, or breach in security of GlobalX’s information technology systems and resultant interruptions in service and any related impact on its reputation; and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators and the U.S. Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in the forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements are made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking statements. If GlobalX does update one or more forward-looking statements, no inference should be made that it will make additional updates with respect to those or other forward-looking statements.

GLOBAL CROSSING AIRLINES GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value and share quantities)
		March 31, 2024 (Unaudited)				December 31, 2023
Current Assets
Cash and cash equivalents		$	8,300			$	11,596
Restricted cash			3,764				6,080
Accounts receivable, net of allowance of $454 and $95 as March 31, 2024 and December 31, 2023, respectively.			5,574				10,180
Prepaid expenses and other current assets			3,177				2,552
Current assets held for sale			181				184
Total Current Assets			20,996				30,592
Property and equipment, net			6,776				5,525
Finance leases, net			20,878				4,108
Operating lease right-of-use assets			86,429				76,880
Deposits			12,959				12,506
Other assets			2,425				1,717
Total Assets		$	150,463			$	131,328
Current liabilities
Accounts payable		$	11,999			$	7,481
Accrued liabilities			17,648				17,465
Deferred revenue			3,814				9,896
Customer deposits			4,266				3,935
Current portion of long-term operating leases			12,311				13,650
Current portion of finance leases			2,160				599
Total current liabilities			52,198				53,026
Other liabilities
Note payable			29,331				29,175
Long-term operating leases			75,677				65,158
Long-term finance leases			18,592				3,292
Other liabilities			568				544
Total other liabilities			124,168				98,169
Total Liabilities		$	176,366			$	151,195
Commitments and Contingencies (Note 7)
Equity (Deficit)
$.001 par value; 200,000,000 authorized; 59,667,950 and 58,925,871 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively		$	60			$	59
Additional paid-in capital			39,285				38,943
Retained deficit			(65,473	)			(59,094	)
Total Company's stockholders’ deficit			(26,128	)			(20,092	)
Noncontrolling interest			225				225
Total stockholders’ deficit			(25,903	)			(19,867	)
Total Liabilities and Deficit		$	150,463			$	131,328
See accompanying notes to consolidated financial statements.

GLOBAL CROSSING AIRLINES GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except share and per share amounts)
		Three Months Ended March 31, 2024				Three Months Ended March 31, 2023
Revenue		$	53,835			$	32,151
Operating Expenses
Salaries, Wages & Benefits			16,775				11,168
Aircraft Fuel			8,199				7,949
Maintenance, materials and repairs			2,933				1,559
Depreciation and amortization			1,166				443
Contracted ground and aviation services			6,903				4,853
Travel			4,282				2,254
Insurance			1,633				949
Aircraft Rent			12,761				5,644
Other			3,802				2,862
Total Operating Expenses		$	58,454			$	37,681
Operating Loss			(4,619	)			(5,530	)
Non-Operating Expenses
Interest Expense			1,760				542
Total Non-Operating Expenses			1,760				542
Loss before income taxes			(6,379	)			(6,072	)
Income tax expense			-				-
Net Loss			(6,379	)			(6,072	)
Net Income attributable to Noncontrolling Interest			-				-
Net Loss attributable to the Company			(6,379	)			(6,072	)
Loss per share:
Basic			(0.11	)		$	(0.11	)
Diluted			(0.11	)		$	(0.11	)
Weighted average number of shares outstanding			59,234,601				54,490,925
Fully diluted shares outstanding			59,234,601				54,490,925
See accompanying notes to consolidated financial statements.

GLOBAL CROSSING AIRLINES GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (In thousands, except shares quantities)
		Common Stock Number of Shares				Amount				Additional Paid in Capital				Retained Deficit				Total
Beginning – January 1, 2023			53,440,482			$	53			$	30,774			$	(38,083	)		$	(7,256	)
Issuance of shares – options exercised			150,000				0				67				-				67
Issuance of shares – warrants exercised			2,499,453				2				1,134				-				1,136
Issuance of shares - share based compensation on RSUs			208,416				0				500				-				500
Loss for the period			-				-				-				(6,072	)			(6,072	)
Ending – March 31, 2023			56,298,351			$	55			$	32,475			$	(44,155	)		$	(11,625	)
		Common Stock Number of Shares				Amount				Additional Paid in Capital				Retained Deficit				Total			Noncontrolling Interest			Total
Beginning – January 1, 2024			58,925,871			$	59			$	38,943			$	(59,094	)		$	(20,092	)	$	225		$	(19,867	)
Issuance of shares - share based compensation on RSUs			742,079				1				342				-				343			-			343
Loss for the period			-				-				-				(6,379	)			(6,379	)		-			(6,379	)
Ending – March 31, 2024			59,667,950			$	60			$	39,285			$	(65,473	)		$	(26,128	)	$	225		$	(25,903	)
See accompanying notes to consolidated financial statements.

GLOBAL CROSSING AIRLINES GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands)
		For The Three Months Ended March 31,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(6,379	)		$	(6,072	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense			1,166				443
Bad debt expense (recovery)			359				(18	)
Loss on sale of property			—				136
Gain on sale of spare parts			—				(56	)
Foreign exchange loss			—				1
Amortization of debt issue costs			157				250
Amortization of operating lease right of use assets			2,704				1,847
Share-based payments			343				501
Interest on finance leases			309				93
Changes in assets and liabilities:
Accounts receivable			4,248				(1,255	)
Assets held for sale			3				256
Prepaid expenses and other current assets			(626	)			(121	)
Accounts payable			4,518				359
Accrued liabilities and other liabilities			(5,569	)			4,803
Operating lease obligations			(3,073	)			(2,018	)
Other liabilities			(294	)			155
Net cash used in operating activities			(2,134	)			(696	)
CASH FLOWS FROM INVESTING ACTIVITIES
Deposits, deferred costs and other assets			(1,529	)			(824	)
Purchases of property and equipment			(1,717	)			(307	)
Net cash used in investing activities			(3,246	)			(1,131	)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on finance leases			(231	)			(111	)
Proceeds on issuance of shares			—				1,204
Proceeds from note payable			—				2,500
Net cash (used in) provided by financing activities			(231	)			3,592
Net (decrease) increase in cash, cash equivalents, and restricted cash			(5,611	)			1,766
Cash, cash equivalents and restricted cash - beginning of the period			17,675				5,461
Cash, cash equivalents and restricted cash - end of the period		$	12,064			$	7,227
Non-cash transactions
Right-of-use (ROU) assets acquired through operating leases		$	12,252			$	16,209
Equipment acquired through finance leases		$	17,100			$	1,215
Cash paid for
Interest		$	2,588			$	291
See accompanying notes to consolidated financial statements.