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Global Crossing Airlines Group, Inc. (JET: NEO; JET.B: NEO; JETMF: OTCQB) (the “Company” or “GlobalX”) today provided an update on its operations for the first quarter of 2022 and a preview of Q2 2022.
“We had a strong revenue quarter with a 45% increase in revenue over Q4 2021, despite being impacted heavily by the Omicron variant, which forced us to reduce flying by about 20%,” said Ed Wegel, Chairman and CEO of GlobalX. “Our results included expenses related to maintenance and conformity for three aircraft deliveries, as well as significant investments in pilot recruitment and training. We also invested heavily in our IT systems as part of our paperless airline initiative that is required to support future growth.”
“Most importantly, we developed all the manuals and systems needed for us to certify with the FAA to start flying revenue cargo charters with our A321 freighters in Q4 of this year. We are seeing intensely strong demand for this aircraft and we have now successfully sold out all of the capacity. This represents a minimum of 250 hours per aircraft per month for our first three (3) A321 freighters, and we are working on LOI’s for aircraft four and five.”
“In Q2 we are continuing to make significant investments in additional aircraft, with three (3) aircraft being added to our fleet, and in crews and systems to facilitate this growth as we focus on the execution of our business plan for passenger charters, and soon to be launched cargo business.”
Mr. Wegel further added: “We are reaching profitability on our projected timetable and demand is increasing for our product as we gain a reputation for on-time, reliable service. Further, the launch of our Cargo operation in Q4, powered by our 20 A321F which will all be delivered over the next 30 months, will drive sustained growth and profitability.”
First Quarter 2022 Results
During first quarter of 2022, GlobalX operated a total 1,729 block hours with revenues of $16.3M. These represent increases over Q4 2021 of 33% and 46% of block hours and revenues, respectively, and in a single quarter GlobalX exceeded all revenues in 2021. The net loss for the quarter was $4.8 million, and GlobalX ended the quarter with $11.9 million in cash, cash equivalents, and restricted cash. Operating losses during the quarter were driven by the investments necessary to continue the scaling of flight operations and the negative effects of Omicron, which resulted in short-term crew shortages and flights cancelled by clients. Across the first 3 months of 2022, GlobalX operated an average of 6 aircraft for a total of 540 aircraft days available for sale.
2022 Outlook
Looking forward to the full year of 2022, GlobalX reaffirms its expectation to see over $90 Million in revenue, powered by double-digit sequential quarterly revenue growth through the rest of 2022 as it adds additional aircraft and launches its cargo operations. GlobalX is expecting operating income to be near break-even in Q2 and positive in Q3 2022.
As a reminder, there will be a Zoom webinar Tuesday, May 17th at 2:00 PM Eastern Time with Management to discuss these results and more.
You can register in advance for this webinar: https://bit.ly/3swlQPY
The foregoing guidance is based on management’s current views with respect to operating and market conditions and customer forecasts. Actual results may differ materially from what is provided here today as a result of, among other things, the factors described under “Cautionary Note Regarding Forward-Looking Statements” below.
For full details of the 2022 Q1 financial results, management’s discussion and analysis of financial results and consolidated financial statements and notes for the three months ended March 31, 2022, will be available in the Company’s Quarter Report on Form 10-Q that will be filed on EDGAR and under the Company’s SEDAR profile at www.sedar.com. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).
This press release was prepared and distributed by GlobalX
