Global Crossing Airlines (GlobalX) issued this financial report for its first quarter:
Significant highlights and milestones for the quarter include:
- Obtained its US FAA Aircraft Operating Certificate as a US 121 Flag and Supplemental Carrier
- Obtained its Certificate of Public Convenience and Necessity for Foreign Charter Air Transportation from the US DOT to Fly Internationally
- Entered Revenue Service on August 7, 2021 with one Airbus A320 Aircraft; Three aircraft in operation by September 30, 2021
- Signed leases for one Airbus A321 converted freighter and two A320 passenger aircraft; Signed letters of intent for one A321 converter freighter and one A320 passenger plane
Global Crossing Airlines Group, Inc. “GlobalX” reported its financial results for its first quarter of revenue operations which occurred in the third quarter ended September 30, 2021, including revenue of $3.1M and net operating loss of $5.26M or ($.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. All dollar amounts in this press release are in United States dollars.
“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.”
MR. 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.”
Third-Quarter Results
Flights in the third quarter of 2021 totaled 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.
Outlook
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 6 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, Mr. 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.”
About Global Crossing Airlines
GlobalX is a US 121 domestic flag and supplemental airline flying the Airbus A320 family aircraft. GlobalX flies as an ACMI and wet lease charter airline serving the US, Caribbean, and Latin American markets.
In other news, Canada Jetlines Operations Ltd. and Global Crossing Airlines Group Inc. have announced that Canada Jetlines (through its Canada Jetlines Vacations Ltd.) subsidiary, and GlobalX (through its GlobalX Air Tours LLC subsidiary) intend to launch their first partnership on the sale of public charter flights between Toronto and Florida.
The arrangement is the first between the two companies since GlobalX completed the spin out of Canada Jetlines in June 2021 to shareholders. Under the terms of the arrangement, Canada Jetlines Vacations will jointly market and sell seats on GlobalX public charter flights over a six-week period. Round trip charter flights are expected to operate from Toronto to Miami and Fort Lauderdale weekly beginning in March 2022.
The parties are targeting that tickets will go on sale in December 2021, pending receipt of all final regulatory approvals including approval from, and completion of Canada Jetlines Vacation registration with, the Travel Industry Council of Ontario (TICO).
Flights will be operated on GlobalX Airbus A320 aircraft.
Canada Jetlines intends to start operating flights to Florida with its own A320 aircraft once it has completed its certification and receives all required government approvals.
In other news, GlobalX also announced on November 15 it commenced operations for Havana Air:
Global Crossing Airlines Group, Inc. and ViajeHoy, LLC, d/b/a Havana Air (Havana Air) are pleased to announce that they have commenced scheduled charter service from Miami and Tampa to Havana.
The initial service, granted under approval from the U.S Department of Transportation, operates six times weekly between Miami and Havana, and twice weekly between Tampa and Havana.
Both GlobalX and Havana Air plan for the number of flights to increase as Cuba fully opens post-pandemic.
On September 30, 2021, US DOT approved the GloablX fleet size increase to 6 aircraft, subject to FAA approval as each enters service. N279GX (below) entered revenue service on October 1, 2021. N278GX entered service at the end of October bringing the fleet to 4. Two additional A320s will enter service within 60 days growing the fleet to 6.
Airbus A320 N278GX also wears updated 2021 livery:
Top Copyright Photo: Pictured in the inaugural 2021 livery: GlobalX (Global Crossing Airlines) Airbus A320-214 N276GX (msn 2695) LAS (Nick Dean). Image: 955771.
