Global Crossing Airlines Group (GlobalX) reported third quarter 2023 revenue of $42.6 million with EBITDAR of $7.6 million.
“GlobalX had another record quarter and achieved a new high in block hours operated and reported revenue during the busy summer season,” said Ed Wegel, Chair and Chief Executive Office of GlobalX. “Total revenue was up 38% versus the third quarter of 2022 with a GAAP operating loss of $2.3M, which is $4.4M reduction compared to the second quarter of 2023. GlobalX has made great progress towards the goal of sustained profitability through the growth of our fleet and scaling of our operations. The fleet is now at 10 passenger and 3 cargo aircraft with four additional planned aircraft to be added in Q4, which will underpin double-digit growth planned for 2024.”
GlobalX operated 6,487 revenue block hours in Q3 2023 representing an 173% increase over the 2,380 block hours operated in Q3 2022. Third quarter 2023 EBITDAR on an unadjusted basis was $7.6 million, EBITDA was a loss of $1.7 million and EPS was $(0.08). Q3 2023 Adjusted EBITDAR(1) was $8.2 million, Adjusted EBITDA(1) was ($1.2) million and Adjusted EPS(1) was $(0.08).
The company said that the third quarter revenues allowed it to accelerate pilot hiring and training with approximately $5.75 million of direct costs spent in the third quarter on hiring and training new pilots required to crew the additional aircraft to be delivered through year end. GlobalX said that it had “determined going forward it is important to highlight the money being spent on new pilot hiring and training, which is reflected in our operating expenses, but will no longer present an adjusted earnings number excluding these amounts”.
Ed Wegel, Chair and CEO of Global X stated, “We achieved several important milestones in the third quarter of 2023. We closed a $35 million debt facility which will fund our rapid growth of operations and facilitate working capital needs in 2024 and beyond. Hiring and training in key operational groups in preparation for the delivery of four potential additional aircraft in the fourth quarter of this year. We achieved vastly improved operational efficiency evidenced by the improvement in aircraft utilization by 50%. The Company has more than 3,800 block hours contracted for Q4 of 2023 and anticipate operating over 6,000 hours in the quarter, which keeps us on track to meet our block hour and revenue goals for the year.”
During the quarter, Global X closed a $35 million debt facility with Axar Capital, and signed Letters of Intent (LOI) for two A320 passenger aircraft and one A321 passenger aircraft. The airline took delivery of one A319 to be used primarily in 68 seat VIP configuration, while a third A321 freighter was delivered in late September.
The company also completed the financing and signed the lease for the maintenance facility to be built at Ft. Lauderdale Int’l Airport, at an approximate cost of $27 million.
GlobalX ended the quarter with $17.3 million in cash and restricted cash which is up 46% from the amount of cash and restricted cash available on December 31, 2022.
For the fourth quarter, Global X expects to take delivery of two A320 passenger aircraft, one in November and one in December as well as two A321 freighter aircraft in December.
Revenue guidance for the full year 2023 remains $150 million, a 54% increase over 2022. Currently $143 million of this revenue, or approximately 95%, has been flown or contracted.