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Global Crossing Airlines Group Inc. (JETMF)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue up 10.7% YoY to $58.0M; operating income turned positive to $1.0M vs a $(2.5)M loss in Q3 2024; net loss narrowed to $(2.0)M (EPS $(0.03)) on record utilization and ACMI mix shift .
  • Management cited ~500 lost block hours from unscheduled maintenance as the main reason profitability missed; actions include leadership changes, process redesign, and >$5M annualized SG&A cuts; all aircraft expected fully operational heading into December .
  • ACMI strength continued: ACMI revenue +44% YoY to $53.2M; ACMI block hours +45% YoY; charter revenue intentionally reduced as mix shifted to ACMI .
  • Near-term catalysts: Sunrise Airways ACMI (two A320s starting November), first purchased A320 and A319 deliveries entering service in Q4, record bookings into year-end .
  • Risks: liquidity (cash and restricted cash ~$7.2M at 9/30); elevated interest expense; going concern language due to working capital deficit and financing needs .

What Went Well and What Went Wrong

  • What Went Well

    • Record 9,901 block hours with average utilization per available aircraft up 26% YoY; ACMI block hours +45% YoY .
    • ACMI revenue +44% YoY to $53.2M; EBITDA improved to $4.3M (EBITDAR $18.9M) vs $(0.6)M a year ago .
    • Strategic wins: Sunrise ACMI (two dedicated A320s) and fleet actions (first purchased A320; A319 deliveries slated for Q4) supporting profitable expansion .
    • Quote: “We achieved some of the highest aircraft utilization rates since our inception… revenue up 11%, EBITDAR up 22%” – Executive Chairman Chris Jamroz .

  • What Went Wrong

    • ~500 block hours lost due to AOG/unscheduled maintenance in geographies with limited infrastructure; direct hit to revenue and margins .
    • Interest expense increased (Q3: $3.0M vs $2.4M prior-year), pressuring net income despite positive operating income .
    • Liquidity decline: cash and restricted cash ~$7.2M at quarter-end (vs $14.0M at 12/31/24); going concern language persists given working capital deficit and funding needs .
    • Analyst concern: execution risk in rapidly scaling operations; management is reorganizing ops/maintenance and normalizing SG&A starting December .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD)$52.4M $66.6M $61.4M $58.0M
Operating Income (EBIT) ($USD)$(2.5)M $3.1M $3.3M $1.0M
Net Income ($USD)$(4.9)M $0.15M $0.61M $(1.96)M
Diluted EPS ($)$(0.08) $0.00 $0.01 $(0.03)
Total Operating Expenses ($USD)$54.9M $63.5M $58.1M $57.0M
EBIT Margin %(4.4%)*4.67%*5.34%*1.78%*

Values marked with * retrieved from S&P Global.

Disaggregated revenue (segment-like):

Revenue ($USD)Q3 2024Q1 2025Q2 2025Q3 2025
ACMI$36.8M $34.3M $44.5M $53.2M
Charter$15.0M $30.5M $15.3M $2.3M
Other$0.6M $1.8M $1.5M $2.5M
Total$52.4M $66.6M $61.4M $58.0M

KPIs:

KPIQ3 2024Q1 2025Q2 2025Q3 2025
Net Aircraft Available (units)15.2 16.7 17.1 15.9
Total Block Hours (incl. subservice)8,064 7,546 8,065 9,901
Avg Utilization per Available Aircraft (hrs)490.8 442.0 471.0 617.5
ACMI Block Hours6,571 5,091 6,769 9,527
Charter Block Hours1,254 2,246 1,154 178
Revenue per Block Hour – ACMI ($)$5,600 $6,740 $6,580 $5,586
Revenue per Block Hour – Charter ($)$11,951 $13,588 $13,272 $13,015
% Block Hours – ACMI82% —84% 96%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SG&A Run RateQ4 2025Not disclosed“More normalized SG&A run rate” beginning in DecemberMaintained qualitative; operational normalization
Operational ReadinessQ4 2025Not disclosed“All aircraft… fully operational heading into [December]”Operational target added
Fleet AdditionsQ4 20254 A319 planned; A320 purchase announcedFirst A319 delivered; remaining three A319 over next three months; first purchased A320 in revenue service in DecemberMaintained/updated timing
Strategic ACMINov 2025Not disclosedSunrise Airways ACMI: 2 A320 starting in NovemberNew program
Cash Flow from OpsQ3Prior-year Q3: cash used $(1.0)MQ3 2025: cash provided $0.6MImproved

Earnings Call Themes & Trends

TopicQ1 2025 (Mar)Q2 2025 (Jun)Q3 2025 (Sep)Trend
Ops & MaintenanceHeavy checks and right-sizing crew; focus on stability 14 maintenance events incl. 2 heavy checks; reduced sub-service; hybrid ownership Unplanned AOGs; 500 lost block hours; overhaul ops/maintenance, central planning, audits; preventive maintenance Execution intensity rising; processes strengthened
Cargo MarketSoft; 4 A321F operating; expanding customer base Soft; DHL trial ACMI extended 4 months Soft; maintaining activity; efficient platform keeps utilization Softness persists; positioning for recovery
Passenger DemandStrong; colleges/tours/government driving demand Strong; tight supply; expanding relationships “Exceptionally strong,” constrained aircraft supply; record bookings Robust and improving
ACMI Mix ShiftACMI revenue +84% YoY; charter down as mix shifts ACMI ~73% revenue/84% block hours ACMI 92–96% of revenue/block hours; charter materially reduced Continued shift to predictable margin
LiquidityCash decreased; positive CFO beginning Cash & restricted ~$14.1M; cash flow from ops +$8.9M H1 Cash & restricted ~$7.2M; expect build in Q4 deposits/payments Seasonal rebuild expected Q4
Fleet StrategyA321 delivery; staffing; plan for up to 19 pax aircraft First aircraft purchase (A320); 4 A319 leases signed Q4 A319 deliveries; A320 in service; target ~24 aircraft by mid-2026 (Q&A) Scaling with mixed lease/ownership

Management Commentary

  • “We had the opportunity to achieve net income profitability — and we fell short due to our own execution issues… the rapid pace of growth challenged our maintenance and operations functions, leading to avoidable logistics disruptions and preventable AOG events.” – Chris Jamroz .
  • “We lost approximately 500 block hours to unscheduled maintenance… those lost hours, and the resulting incremental maintenance expense, are the primary reasons we missed the opportunity to report positive net income.” – Ryan Goepel .
  • “We’ve reduced more than $5 million in annualized office and operating costs… we expect a more normalized SG&A run rate beginning in December… and we anticipate all aircraft will be fully operational heading into that period.” – Ryan Goepel .
  • “Bookings across all charter customer segments are at record levels, materially ahead of last year.” – Ryan Goepel .
  • “Signed a strategic ACMI agreement with Sunrise Airways to provide two dedicated A320 aircraft starting in November.” – Management .

Q&A Highlights

  • Unscheduled maintenance detail: operations in regions with limited infrastructure (e.g., bird strike in Turkey; hydraulic lines on West Coast) prolonged AOGs; ~500 hours lost equates ~$1.5–$2.0M revenue impact at ACMI rates, materially affecting bottom line .
  • Cost actions: overhead reduced ~15% in headcount/cost; >$5M annualized savings; future salary growth 90–95% tied to crew and revenue aircraft .
  • Mix & seasonality: ACMI-heavy in Q3; charter ramps mid-November through March with higher revenue per block hour; expected seasonal mix shift in Q4 .
  • Liquidity outlook: positive operating cash flow; deposits and payments expected to rebuild cash entering sports charter season .
  • Fleet path: plan to add four A319 by YE; target ~24 aircraft by mid-next year; focus on unit economics; reduced reliance on sub-service .

Estimates Context

  • S&P Global consensus for Q3 2025 EPS and revenue was not available; the estimates feed contained actuals only and showed no # of estimates for EPS or revenue. As a result, a beat/miss vs consensus cannot be assessed for EPS/revenue for Q3 2025 [Values retrieved from S&P Global].
  • Actuals: Revenue $58.0M; EBITDA $4.3M (company disclosure) .
  • Implication: Given management’s commentary and absence of consensus, buyside models may need to reflect lower charter mix, higher ACMI utilization, and near-term maintenance normalization.

Key Takeaways for Investors

  • Utilization-led growth with ACMI mix drove positive operating income; profitability hinged on execution—watch Q4 reliability after process/leadership changes .
  • Near-term catalysts include Sunrise ACMI launch, A319 additions and first owned A320 entering service in December; bookings at record levels could support sequential improvement .
  • Margin trajectory: ACMI expands utilization and predictability but reduces revenue per hour; monitor EBITDA conversion as SG&A normalizes and maintenance costs stabilize .
  • Liquidity remains tight; cash and restricted cash ~$7.2M at quarter-end; going concern disclosure underscores the importance of operating cash generation and financing options .
  • Interest expense is a headwind (high-cost notes and lease financing); leverage and cash interest should be tracked against expanding fleet and operating cash flow .
  • Cargo remains soft, but platform retains utilization with efficient A321F economics; upside optionality if North American freight recovers and DHL relationship deepens .
  • Trading lens: Stock may respond to evidence of Q4 operational normalization (on-time performance, reduced AOGs), execution of Sunrise ACMI, and visible cash build from deposits/seasonal charter.

Citations: Press release and investor presentation ; Q3 2025 10-Q ; Q2 2025 10-Q and 8-K ; Q1 2025 10-Q . Values marked with * retrieved from S&P Global.