Canada Jetlines reported a revenue of $8.8 million in second quarter 2023 (Q2) as compared to $5.1 million in the previous quarter, up by 72.8%. The group reported its Q2 interim financial results in which the group generated $6.34 million as its charter and ACMI operations increased in Q2, 2023 reporting a hike of 87.5% over the same time last year when the revenue generation was $3.38 million.
Total operating expenses for the second quarter 2023 was $9.23 million as compared to $8.15 million in the previous quarter, an increase of 13%. Increases were primarily driven by increased flying activity.
Total assets increased from $27,860,429 as of December 31, 2022 to $27,289,573 in Q2, 2023. The minor increase in total assets is primarily attributable to an increase in current assets that was partially offset by a decrease in Right-of-use assets due to depreciation.
Total liabilities increased to $33,753,436 at the end of the current quarter from $28,948,171 as at December 31, 2022. The increase was made up of the liabilities associated with an increase in deferred revenue and an increase in accounts payable and accrued liabilities, explained by the timing of payments and invoices received at the end of the period.
Eddy Doyle, chief executive and president, Jetlines commented: “We are pleased to report that several key milestones were achieved in Q2 2023. The Company has achieved exceptional flying hours in Q2 2023 as compared to Q1 2023, an increase of 265% and a 72.8% increase in its operating revenue. Canada Jetlines also took delivery of its 3rd aircraft at the end July 2023. The company intends to add up to two additional aircraft to its fleet in 2023 and continue to grow its schedule, with the upcoming fall/winter season, and grow its Charter/ACMI business.”
The company ended the quarter with $5.1 million in current assets, an increase of $2 million compared to December 31, 2022. The increase is mainly due to the increase in cash balance.
The company’s current liabilities increased from $8.2 million at December 31, 2022 to $13.1 million, mainly due to an increase of $0.8 million in accounts payable and accrued liabilities. In addition, there is a $4 million increase in deferred revenue for cash collected in terms of future flying.
Based on the company’s working capital position, it will need to raise additional capital to support its business plan. The company is seeking additional capital in the form of debt, convertible debt or equity in order to further invest in the business and facilitate the continued growth of the fleet, including the acquisition of additional leased aircraft, as well as additional working capital.