Global Crossing Airlines Group has reported financial results for its first quarter of revenue operations which occurred in the third quarter ended September 30, 2021. GlobalX posted revenue of $3.1 million and net operating loss of $5.26 million or ($.10) per diluted share. Included in GlobalX’s operating results are an estimated $2.1 million in expense related to pre-revenue operations during the quarter, as well as approximately $750 thousand in non-recurring expenses.
During the quarter, GlobalX obtained its US FAA Aircraft Operating Certificate as a US 121 Flag and Supplemental Carrier, as well as its Certificate of Public Convenience and Necessity for Foreign Charter Air Transportation from the US DOT to Fly Internationally.
GlobalX entered revenue service on August 7, 2021 with one Airbus A320 Aircraft;, and had three aircraft in operation by September 30, 2021. The ACMI and charter airline signed leases for one Airbus A321 converted freighter and two A320 passenger aircraft; and signed letters of intent for one A321 converter freighter and one A320 passenger plane.
“We had a very smooth entry into revenue operations and the GlobalX team has performed exceedingly well,” said Ed Wegel, Chairman and CEO of GlobalX. “During our first seven weeks of operations we operated more than 150 revenue flights, and approximately 400 block hours, for nearly a dozen customers.”
“On August 30th, we received our final authority from the US Department of Transportation to fly international charters. This enables us to fly to the Caribbean, Mexico, Latin America, and Canada. We capitalized on that authority by immediately executing on international contracts, and we have been continuing to expand our international client base.”
Wegel further added: "Now that the FAA certification is behind us, our focus is on delivering exceptional customer value, while scaling the airline towards profitability. We are extremely encouraged about the demand for our product offering as well as our growing portfolio of customers.”
Flights in the third quarter of 2021 totalled 378 block hours with revenue of $3.1M, both of which were zero for the same period in 2020. Operating losses during the quarter were driven by the investments necessary to achieve FAA certification and limited number of aircraft. During the quarter GlobalX operated two Airbus A320s and one Airbus A321 aircraft for 91 total combined days available for sale.
GlobalX ended the quarter with $8.9 million in cash and restricted cash.
Looking ahead, GlobalX projects strong demand for its services and a resulting increase in revenue block hours in the fourth quarter of 2021. GlobalX will seek to continue to increase its flight activity to Cuba and the Dominican Republic, as well as flights on behalf of the US Government agencies, US-based hotel and casino operators, and for college football team clients (including NCAA football bowl game flights). GlobalX is accepting delivery of three aircraft in the coming weeks and expects to have as many as six aircraft operating by the end of the year. This will result in an estimated 270% increase in total combined aircraft days available for sale in the fourth quarter versus third.
Commenting on the results, Wegel stated: “We believe we are now developing a strong foundation for our airline, with a strong team of airline professionals, and we are well positioned going into 2022.”