Global Crossing Airlines (GlobalX) recorded first quarter (Q1 2023) revenue of $32.2 million, up $15.8 million on Q1 2022.
But the company said it faced extra costs during the period, including "accelerated cockpit crew hiring and training to prepare for a busy 2023 summer schedule", which added $1.4 million in training expenses. #
The deferral of a $6 million US government contract from January to May, and the loss of $1.5 million arising out of the "continued delay in delivery "of its first A321 freighter, added to costs, GlobalX announced.
The company ended the quarter with $14.7 million in current assets, an increase of $2.9 million on Q4 2022 Current liabilities increased from $27.9 million in 2022 to $34.1 million in Q1 2023, which the company put down to "an increase of deferred revenue for future flying, customer deposits and current portion of long-term operating leases due to the increase in the fleet size".
“Q1 is traditionally the lowest revenue quarter of the year. Our team performed exceedingly well in a tough operating environment with continued delivery delays of aircraft out of heavy maintenance and the deferral of certain government contracts, said chair and chief executive Ed Wegel.
Gloval X said it expects compensation of up $2.25 million from third parties because of the late deliveries and overall remains "bullish" about 2023, expecting revenue to top $140 million and the addition of four A321F cargo aircraft.
The company said it is "in discussions with third parties" to add to its capital, which it added could be "in the form of debt, convertible debt, or equity" and would be used to "further invest" in the business.
"We finished all requirement for the major certifications we need to continue to grow, started revenue cargo operations, and built the infrastructure of people and systems to fly a very heavy flying schedule for the second half of 2023; specifically adding over 25 pilots and 36 flight attendants," Wegel added.