Global Crossing Airlines Group reported total operating revenue of $31.5 million, rise of $14 million or 80.5% as compared to Q2 2022. The group reported its second quarter 2023 financial results.
GlobalX operated 3,585 revenue block hours in Q2, 2023 representing an 70% increase over the number of block hours operated in Q2 2022. This also compares favorably to 3,134 block hours operated in Q1 2023, an increase of 14%.
In addition, Q2 2023 results on an Adjusted EBITDAR basis were $5.3 million. On a year over year basis the company saw revenue increase by 80%, while costs only increased by 59%.
The company’s financial results were negatively impacted by accelerated cockpit crew hiring and training to prepare for a busy 2023 summer schedule resulting in an increase of approximately $4.2 million in training expenses; continued delay in delivery of second A321 freighter which resulted in lost ACMI revenue of approximately $2.4 million; and continued MRO delays in completing scheduled maintenance heavy checks on two of the A320s which resulted in 26% of the aircraft not being available for operations over the course of the quarter.
Ed Wegel, chair and chief executive, GlobalX said: “We made great progress in Q2 putting in place the people, systems and training for both the summer flying and to be prepared for the delivery of six additional aircraft in the second half of this year. This has allowed us to fly 2,538 block hours in July and keeps us on track to meet our block hour and revenue goals for the year. We have put systems and procedures in place to reduce the industry wide delays at MROs which will increase available aircraft time, and reduce freighter conversion time. Two of our next 4 freighters have already been converted to cargo, which will eliminate the delivery delays we experienced on our first two freighters.”
Over the course of the quarter, GlobalX signed letter of intent (LOIs) for two A320 passenger aircraft and two A321 freighters, recruited hired and trained 35 pilots, with an additional 22 in training which started in the quarter and 36 flight attendants, received its UK TCO and completed a wet lease contract with Lynx Air in Canada.
GlobalX ended the quarter with $8.4M in cash and restricted cash which is up 53% from the amount of cash and restricted cash available at December 31, 2022.
In the Q3, 2023 the company is expecting delivery of one A319, one A320 and one A321 freighter. GlobalX is also planning to complete the financing and sign the lease for the maintenance facility to be built at Ft. Lauderdale Int’l Airport
The company expects to operate over 6,000 block hours in Q3 and is increasing its revenue guidance for 2023 to $150 million, a 54% increase over 2022. Currently $112 million of this revenue, or approximately 75%, is contracted. The company is currently bidding on average $2M worth of contracts a day and has a current pipeline of potential contracts for 2023 of $50M.
To support this growth, the Company is looking to take delivery of three more passenger aircraft in 2023 expecting deliveries in August, October and December, plus up to four more A321F aircraft.