Global Crossing Airlines Group (GlobalX) has posted a strong first quarter result to open the year, and hold confidence for a “bullish” full year result.
In addition, the airline has been approved by the US Department of Transportation for an increase to 16 aircraft from the current authorization of 11 aircraft.
“This increased authorization will allow us to continue the execution of our 2023 business plan to add up to two more A320 passenger aircraft and two A321 freighters later this year, subject to FAA approvals.
This is in addition to one A319 passenger aircraft and one A321 freighter that are being added to the fleet in the next 30 days, bringing the current fleet to 12 aircraft,” said Ed Wegel, Chairman and CEO.
The second A321 freighter is expected to be delivered to Miami by the end of May and is expected to fly from MIA to cities in central and South America. The A319 is expected to be delivered in early June.
Quarter One 2023 performance
Global Crossing Airlines is also recently disclosed its performance for the first quarter of 2023, showing notable improvement in its year-on-year figures.
Total operating revenue for Q1 2023 was $32.2 million. This represents an increase of $15.8 million or 96.3% when compared to Q1 2022.
In addition, GlobalX operated 3,134 revenue block hours in Q1 2023 representing an 81% increase over the number of block hours operated in Q1 2022.
Negative factors
The Company’s financial results were negatively impacted by a number of factors, including:
(i) accelerated cockpit crew hiring and training to prepare for a busy 2023 summer schedule resulting in an increase of approximately $1.4 million in training expenses;
(ii) the deferral of a major US government contract from January to May, which represented approximately $6 million in revenue;
(iii) continued delay in delivery of our first A321 freighter which resulted in lost revenue of approximately $1.5 million;
(iv) uncontrollable delays of passenger aircraft from heavy maintenance resulting in 171 days of available aircraft time; and
(v) the incurrence of cargo related expenses in anticipation of A321F revenue hours in Q1 which were not flown.
Ed Wegel, Chair and CEO of the Company stated “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.”
2023 Update
Mr. Wegel outlined an optimistic projection for the rest of the year, saying: “The Company remains very bullish on 2023 with its cargo certification completed and its first A321 freighter having started revenue operations in Q1.”
“The Company is also expecting the delivery of the second A321 freighter in late May, which will be operating in June.”
“We expect full year revenue in 2023 of over of $140 million, with $65 million in revenue during the first half of the year.”
“To date for all of 2023, we have contracted for 12,827 block hours and expect to contract an additional 10,000 hours subject to aircraft delivery dates. This compares to 10,615 block hours contracted in 2022,” Wegel concluded.
About GlobalX
Global Crossing Airlines, also known as GlobalX, is a charter airline based in Miami, Florida. It was founded in 2015 and operates under the FAA Part 121 certificate, which allows it to conduct scheduled and charter flights.
GlobalX focuses on providing air transportation services to various industries, including leisure travel, sports teams, government agencies, and the entertainment sector.
GlobalX operates Airbus A320 family aircraft and flies as a passenger ACMI and charter airline serving the US, Caribbean, European and Latin American markets.
GlobalX is also now operating ACMI cargo service flying the A321 freighter.
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