Global Crossing Airlines Group Inc.: Global Crossing Airlines Reports Second Quarter 2024 Financial Results

Achieves Profitability with GAAP Net Income of $0.3 Million or $0.01 per Share and EBITDAR of $18.7 Million

Generated Record Block Hours of 6,591 in Q2

Announces Major Government Contract Expected to Generate Approximately $65 Million in Annualized Revenue

MIAMI, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Global Crossing Airlines Group Inc. (Cboe CA: JET, Cboe CA: JET.B, OTCQB: JETMF) (the "Company" or "GlobalX"), the Nation's fastest growing charter airline, continued its record growth and announced its financial and operating results for the second quarter ended June 30, 2024. Except as otherwise disclosed, all figures are for the three month period, presented in United States dollars and prepared in accordance with U.S. GAAP.

Financial and Operational Summary
	Q2 2024	Q2 2023	% Change
Revenue:	$57.5M	$31.5M	83%
EBITDAR1:	$18.7M	$0.5M	~37x
Net Aircraft Available:	14.4	7.8	84%
Total Block Hours:	6,591	3,585	84%
Average Utilization Per Aircraft:	458	458	0%

"At the beginning of this year, we focused on streamlining our operations through disciplined and targeted efforts to enhance our award-winning service quality and sustain our industry-leading revenue growth. Today, we are pleased to report accelerated top-line growth, marking our third consecutive quarter of year-over-year increases and achieving a profitable quarter," said Chris Jamroz, Executive Chairman of GlobalX. "Our performance in 2024 has been strong, and we are now focused on laying the groundwork for continued growth and sustained profitability."

GlobalX President and CFO, Ryan Goepel, added: "In the second quarter, we delivered another period of double-digit revenue growth while further improving our operating efficiencies, enabling us to achieve GAAP profitability and significantly reduce cash usage in operations. These results reflect the strength of our new management team and a revitalized culture at GlobalX, alongside our sharpened focus on core operations and successful execution of our strategic plan."

Mr. Goepel continued: "During the quarter, we secured new customers and new contracts and generated a 27% sequential increase in block hours flown, with just one additional aircraft compared to the first quarter of 2024. We also renegotiated several contracts at higher rates, resulting in a 56% increase in revenue per block hour flown for ACMI and a 37% increase for charter. Additionally, we reached a significant milestone by operating our first flight for the Department of Defense, a key customer that has already booked material flight revenue for July and August. With our expanding fleet, new contract wins, and a focused approach to profitable growth, we are well-positioned to achieve our goals moving forward."

Q2 2024 Financial Highlights (vs. Q2 2023)

• Revenue: Revenue increased 83% to $57.5 million compared to $31.5 million. This is the best quarter in GlobalX's short corporate history. The increase was primarily driven by higher block hours flown and aircraft fleet expansion, as well as increased revenue per block hour flown for both passenger ACMI and charter.

• Total Operating Expenses: Operating expenses were $55.0 million compared to $38.3 million. The increase was primarily due to higher aircraft rent, maintenance, and personnel costs associated with the expansion of the GlobalX fleet, as well as higher travel costs related to the expansion of a government contract. In addition, the Company had approximately $1.2 million of expenses and charges related to the lease return of an aircraft, unwinding non-core businesses and other one-time items in the quarter, including severance costs incurred as part of an internal reorganization.

• Net Income (Loss)/EPS: Net income increased to $0.3 million compared to $(7.5) million. Earnings per share increased to $0.01 per basic and diluted share, compared to $(0.13) per basic and diluted share.

• EBITDAR¹: EBITDAR increased approximately 37x to $18.7 million compared to $0.5 million. The increase was primarily driven by the benefits of increased scale and efficient execution of the Company's core business plan.

^{(1) Refer below to the section "Non-GAAP Financial Measures" for additional information.}

Operational Highlights

• Awarded a five-year contract, inclusive of option periods, to provide air operations charter services on behalf of U.S. Immigration and Customs Enforcement ("ICE"), as a subcontractor to CSI Aviation, INC ("CSI") which has been selected as the prime contractor. GlobalX first began providing services to CSI under an emergency contract in September 2023. The new five-year contract is expected to generate approximately $65 million in annualized revenue.
• Completed the Company's first flight for the Department of Defense, a key customer representing an important milestone for GlobalX.
• In the first half of 2024, GlobalX took delivery of three additional aircraft; two A320 passenger aircraft and one A321F cargo aircraft.
• Signed letters of intent to lease five additional aircraft, which the Company expects to bring to market over the next 15 months.

Liquidity

• Cash and Restricted Cash: The Company had $10.4 million in cash and restricted cash at June 30, 2024, compared to cash and restricted cash of $12.1 million at March 31, 2024 and $17.7 million at December 31, 2023.
  

Conference Call

The GlobalX management team will host a conference call tomorrow, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing [e-mail].

Date: Wednesday, August 14, 2024
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: [phone]
International dial-in number: [phone]
Conference ID: 13747881
Webcast: GlobalX's Q2 2024 Conference Call

If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at [phone].

The conference call will also be available for replay on the investor relations section of the Company's website at www.globalairlinesgroup.com.

About Global Crossing Airlines

GlobalX is a US 121 domestic flag and supplemental airline flying the Airbus A320 family of aircraft. The Company's services include domestic and international ACMI and charter flights for passengers and cargo throughout the US, Caribbean, Europe, and Latin America. GlobalX is IOSA certified by IATA and holds TCO's for Europe and the UK.

For more information:

Company Contact

Ryan Goepel, President & CFO
Tel: [phone]

Investor Relations Contact

Sean Mansouri, CFA or Aaron D'Souza
Email: [e-mail]

Non-GAAP Financial Measures

The Company evaluates its financial performance utilizing various accounting principles generally accepted in the United States of America ("GAAP") and non-GAAP financial measures, including Adjusted operating expenses, adjusted operating income (loss), Adjusted operating margin, adjusted pre-tax income (loss), Adjusted pre-tax margin, Adjusted net income (loss), Adjusted diluted earnings (loss) per share, adjusted EBITDA and adjusted EBITDAR. These non-GAAP financial measures are provided as supplemental information to the financial information presented in this press release that is calculated and presented in accordance with GAAP and these non-GAAP financial measures are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past and future periods.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in the method of calculation and in the items being adjusted. We encourage investors to review our financial statements and other filings with the Securities and Exchange Commission in their entirety and not to rely on any single financial measure.

The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release (other than forward-looking non-GAAP financial measures) to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Per unit amounts presented are calculated from the underlying amounts.

EBITDAR which is defined Operating income (loss), plus depreciation, amortization, interest, taxes and aircraft rent is an important metric to be considered to allow investors to compare results across different airlines regardless of how the airlines acquired their aircraft. This distinction is important when comparing the operational results of an airline leasing its aircraft versus an airline purchasing its aircraft. Specifically, the airline leasing aircraft would see the costs relating to those aircraft flow through aircraft rent, while an airline that owns their aircraft would see their costs for those aircraft flow through depreciation and amortization. In order to compare the operating results of the two airlines an investor needs to look at EBITDAR which is why it is presented.

EBITDAR Reconciliation (in thousands)		Three Months Ended June 30, 2024				Three Months Ended June 30, 2023
Operating Income (Loss)		$	2,543			$	(6,776	)
Depreciation and amortization			1,444				443
EBITDA			3,986				(6,335	)
Aircraft Rent			14,762				6,830
EBITDAR			18,748				495

Cautionary Note Regarding Forward-Looking Information

This news release contains certain "forward-looking statements" and "forward-looking information", as defined under applicable United States and Canadian securities laws, concerning anticipated developments and events that may occur in the future. Forward-looking statements contained in this news release include, but are not limited to, statements with respect to the

Company's industry leading revenue growth, continued growth and sustained profitability, execution of the Company's strategic plan, future flight revenue, approach to profitable growth, the achievement of the Company's goals moving forward, details regarding the lease of five additional aircraft and the intention to bring them to market over the next 15 months, the Company's status as the Nation's fastest growing charter airline and the Company's growth plans. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking statements contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to continue airline operations, the accuracy, reliability and success of GlobalX's business model; GlobalX's ability to accurately forecast demand; GlobalX will be able to successfully conclude definitive agreements for transactions subject to LOI; the timely receipt of governmental approvals; the success of airline operations of GlobalX; GlobalX's ability to successfully enter new geographic markets; the legislative and regulatory environments of the jurisdictions where GlobalX will carry on business or have operations; the Company has or will have sufficient aircraft to provide the service; the impact of competition and the competitive response to GlobalX's business strategy; the future price of fuel, and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include risks related to, the ability to obtain financing at acceptable terms, the impact of general economic conditions, risks related to supply chain and labor disruptions, failure to retain or obtain sufficient aircraft, domestic and international airline industry conditions, failure to conclude definitive agreements for transactions subject to LOI, the effects of increased competition from our market competitors and new market entrants, passenger demand being less than anticipated, the impact of any resurgence of COVID-19, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, risks associated with doing business in foreign countries, the ability of management to implement GlobalX's operational strategy, the ability to attract qualified management and staff, labor disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits; risks related to significant disruption in, or breach in security of GlobalX's information technology systems and resultant interruptions in service and any related impact on its reputation; and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators and the U.S. Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in the forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements are made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking statements. If GlobalX does update one or more forward-looking statements, no inference should be made that it will make additional updates with respect to those or other forward-looking statements.

GLOBAL CROSSING AIRLINES GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and share quantities)
		June 30, 2024 (Unaudited)				December 31, 2023
Current Assets
Cash and cash equivalents		$	8,047			$	11,596
Restricted cash			2,400				6,080
Accounts receivable, net of allowance			6,485				10,180
Prepaid expenses and other current assets			2,017				2,552
Current assets held for sale			403				184
Total Current Assets			19,352				30,592
Property and equipment, net			8,296				5,525
Finance leases, net			20,107				4,108
Operating lease right-of-use assets			90,664				76,880
Deposits			11,909				12,506
Other assets			3,114				1,717
Total Assets		$	153,442			$	131,328
Current liabilities
Accounts payable		$	9,982			$	7,481
Accrued liabilities			17,159				17,465
Deferred revenue			3,888				9,896
Customer deposits			4,429				3,935
Current portion of long-term operating leases			13,323				13,650
Current portion of finance leases			2,284				599
Total current liabilities			51,065				53,026
Other liabilities
Note payable, net of unamortized debt issuance costs			29,389				29,175
Long-term operating leases			79,512				65,158
Long-term finance leases			17,964				3,292
Other liabilities			511				544
Total other liabilities			127,376				98,169
Total Liabilities		$	178,441			$	151,195
Commitments and Contingencies (Note 7)
Equity (Deficit)
Common Stock
$.001 par value; 200,000,000 authorized; 60,603,681 and 58,925,871 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		$	60			$	59
Additional paid-in capital			40,004				38,943
Retained deficit			(65,189	)			(59,094	)
Total Company's stockholders' deficit			(25,125	)			(20,092	)
Noncontrolling interest			126				225
Total stockholders' deficit			(24,999	)			(19,867	)
Total Liabilities and Deficit		$	153,442			$	131,328
See accompanying notes to consolidated financial statements.

GLOBAL CROSSING AIRLINES GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except share and per share amounts)
		Three Months Ended June 30, 2024				Three Months Ended June 30, 2023				Six Months Ended June 30, 2024				Six Months Ended June 30, 2023
Revenue		$	57,546			$	31,475			$	111,380			$	63,626
Operating Expenses
Salaries, Wages, & Benefits			16,745				12,140				33,520				23,308
Aircraft Fuel			5,601				6,087				13,800				14,036
Maintenance, materials and repairs			2,645				1,767				5,578				3,326
Depreciation and amortization			1,444				443				2,609				886
Contracted ground and aviation services			4,757				5,201				11,660				10,054
Travel			3,118				1,347				6,969				3,601
Insurance			1,554				1,245				3,188				2,370
Aircraft Rent			14,762				6,830				27,523				12,474
Other			4,377				3,191				8,609				5,995
Total Operating Expenses		$	55,003			$	38,251			$	113,456			$	76,050
Operating Income (Loss)			2,543				(6,776	)			(2,076	)			(12,424	)
Non-Operating Expenses
Interest Expense			2,258				695				4,018				1,119
Total Non-Operating Expenses			2,258				695				4,018				1,119
Income (Loss) before income taxes			285				(7,471	)			(6,094	)			(13,543	)
Income tax expense			-				-				-				-
Net Income (Loss)			285				(7,471	)			(6,094	)			(13,543	)
Net Income attributable to Noncontrolling Interest			1				-				1				-
Net Income (Loss) attributable to the Company			284				(7,471	)			(6,095	)			(13,543	)
Income (Loss) per share:
Basic		$	0.00			$	(0.13	)		$	(0.10	)		$	(0.24	)
Diluted		$	0.00			$	(0.13	)		$	(0.10	)		$	(0.24	)
Weighted average number of shares outstanding			60,008,779				56,857,629				59,621,946				55,680,815
Fully diluted shares outstanding			83,633,139				56,857,629				59,621,946				55,680,815
See accompanying notes to consolidated financial statements.

GLOBAL CROSSING AIRLINES GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(UNAUDITED)
(In thousands, except shares quantities)
		Common Stock Number of Shares			Amount				Additional Paid in Capital				Retained Deficit				Total
Beginning - January 1, 2023		53,440,482			$	53			$	30,774			$	(38,083	)		$	(7,256	)
Issuance of shares - options exercised		150,000				-				67				-				67
Issuance of shares - warrants exercised		2,499,453				3				1,134				-				1,137
Issuance of shares - share based compensation on RSUs		208,416				-				501				-				501
Loss for the period		-				-				-				(6,072	)			(6,072	)
Ending - March 31, 2023		56,298,351			$	56			$	32,476			$	(44,155	)		$	(11,623	)
Issuance of shares - options exercised		-				-				-				-				-
Issuance of shares - warrants exercised		227,630				-				220				-				220
Issuance of shares - share based compensation on RSUs		481,593				1				578				-				579
Issuance of shares - ESPP		300,121				-				199				-				199
Loss for the period		-				-				-				(7,471	)			(7,471	)
Ending - June 30, 2023		57,307,695			$	57			$	33,473			$	(51,626	)		$	(18,096	)
		Common Stock Number of Shares			Amount				Additional Paid in Capital				Retained Deficit				Total				Noncontrolling Interest				Total
Beginning - January 1, 2024		58,925,871			$	59			$	38,943			$	(59,094	)		$	(20,092	)		$	225			$	(19,867	)
Issuance of shares - share based compensation on RSUs		742,079				1				342				-				343				-				343
Loss for the period		-				-				-				(6,379	)			(6,379	)			-				(6,379	)
Ending - March 31, 2024		59,667,950			$	60			$	39,285			$	(65,473	)		$	(26,128	)		$	225			$	(25,903	)
Issuance of shares - share based compensation on RSUs		544,157				-				498				-				498				-				498
Issuance of shares - ESPP		391,574				-				221				-				221				-				221
Dividends		-				-				-				-				-				(100	)			(100	)
Income for the period		-				-				-				284				284				1				285
Ending - June 30, 2024		60,603,681			$	60			$	40,004			$	(65,189	)		$	(25,125	)		$	126			$	(24,999	)
See accompanying notes to consolidated financial statements.

GLOBAL CROSSING AIRLINES GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
		For The Six Months Ended June 30,
			2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(6,094	)		$	(13,543	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense			2,609				894
Bad debt expense (recovery)			357				(18	)
Loss on sale of property			-				136
Loss (gain) on sale of spare parts			79				(107	)
Foreign exchange loss			-				1
Amortization of debt issue costs			339				531
Amortization of operating lease right of use assets			7,081				3,647
Share-based payments			874				1,109
Interest on finance leases			1,042				202
Changes in assets and liabilities:
Accounts receivable			3,339				(2,931	)
Assets held for sale			(298	)			701
Prepaid expenses and other current assets			535				(684	)
Accounts payable			2,501				4,767
Accrued liabilities and other liabilities			(5,821	)			12,344
Operating lease obligations			(6,838	)			(3,669	)
Other liabilities			(945	)			233
Net cash (used in) provided by operating activities			(1,240	)			3,613
CASH FLOWS FROM INVESTING ACTIVITIES
Deposits, deferred costs and other assets			(1,616	)			(1,069	)
Purchases of property and equipment			(3,603	)			(2,969	)
Net cash used in investing activities			(5,219	)			(4,038	)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on finance leases			(858	)			(221	)
Dividends			(100	)			-
Proceeds on issuance of shares			188				1,594
Proceeds from note payable			-				2,017
Net cash (used in) provided by financing activities			(770	)			3,390
Net (decrease) increase in cash, cash equivalents, and restricted cash			(7,229	)			2,965
Cash, cash equivalents and restricted cash - beginning of the period			17,676				5,461
Cash, cash equivalents and restricted cash - end of the period		$	10,447			$	8,426
Non-cash transactions
Right-of-use (ROU) assets acquired through operating leases		$	20,865			$	37,297
Equipment acquired through finance leases		$	17,085			$	1,334
Note Payable reductions through accounts receivable from sale of Assets held for sale		$	-			$	337
Reclass of capitalized professional fees from proceeds from senior secured note		$	125			$	-
Cash paid for
Interest		$	3,421			$	473
See accompanying notes to consolidated financial statements.

______________________________
^{¹ Refer below to the section "Non-GAAP Financial Measures" for additional information}