Global Crossing Airlines (GlobalX) has reported financial results for its first year of revenue operations, including revenue of $14.3 million and a net operating loss of $19.8 million or ($0.43) per diluted share. Included in GlobalX’s operating results are an estimated $11.1 million in expense related to pre-revenue operations during the year, as well as approximately $1.8 million in non-recurring expenses.
“We certified GlobalX as a US 121 Flag carrier during the pandemic, accomplishing this in 12 months,” said Ed Wegel, Chairman and CEO of GlobalX. “During our first year of operations which was from August to December, we operated 730 revenue flights, and approximately 1,700 block hours, for nearly two dozen customers.”
“I am very excited by the scope and scale of operations achieved since initiating revenue service. Besides successfully launching our ad-hoc charter business, we have flown for tour operators, college sports teams and fans, and established multiple long-running program charter and ACMI relationships. In short, we have been executing the business plan we laid out when we first started Global Crossing.”
Wegel further added: “Our focus remains on delivering exceptional customer value and while scaling the airline towards profitability. We continue to see increasing demand for our aircraft as well as our growing portfolio of customers and products.”
During 2021, GlobalX operated a total 1,679 block hours with revenues of $14.3 million, both of which were zero in 2020. The net loss for the year was $19.8 million, and GlobalX ended the year with $8.0 million in cash, cash equivalents, and restricted cash. Operating losses during the year were driven by the investments necessary to achieve FAA certification, begin the process of scaling operations, and a limited number of aircraft. Across the 12 months of 2021, GlobalX operated an average of 1.2 aircraft for a total of 438 aircraft days available for sale.
During the fourth quarter of 2021, GlobalX operated 1,293 block hours with revenues of $11.2 million, both of which were zero for the fourth quarter of 2020. This represents a 260% increase in revenue over Q3 2021. Operating losses for the quarter totalled $4.5 million with an estimated $1.8 million in expenses related to costs associated with training, aircraft acquisition, share compensation and S-1 filing. For the three months ending December 31, 2021, GlobalX operated an average of 3.8 aircraft for a total of 347 aircraft days for sale.
Looking forward GlobalX expects revenue in Q1 to exceed all revenue in 2021 and average of 30% sequential quarterly revenue growth through the rest of 2022 as the company adds additional aircraft and launch its cargo operations. Based on current contracts and projected aircraft delivery dates, GlobalX anticipates reaching profitability by Q3 2022.
Commenting on the results, Wegel stated: “We believe we have established a strong foundation for our airline, with a solid and highly experienced team of airline professionals, and we are well positioned to grow successfully throughout 2022 and into the future.”