Executive Summary

Record Q3 revenue of $42.6M and EBITDAR of $7.6M; GAAP operating loss narrowed to $(2.33)M, a $4.45M sequential improvement versus Q2 as utilization climbed and mix tilted to ACMI .
Reaffirmed FY 2023 revenue guidance of $150+M with ~95% already flown/contracted ($143M), and projected >6,000 block hours in Q4, supported by additional aircraft deliveries .
Liquidity strengthened: Cash and restricted cash reached $17.3M; closed a $35M Axar Capital debt facility, and executed financing/lease for a ~$27M Fort Lauderdale maintenance facility .
Operational momentum: 6,487 block hours (+173% YoY; +80% QoQ), 50% higher aircraft utilization, increased government flying, and fleet at 10 passenger/3 cargo with more aircraft slated for Q4—key catalysts for near-term sentiment .

What Went Well and What Went Wrong

What Went Well

“Another record quarter” with revenue up 38% YoY and operating loss reduced by $4.4M vs. Q2; management cited fleet growth and scaling operations toward sustained profitability .
Strong execution: 6,487 revenue block hours in Q3 (+173% YoY; +80% QoQ), 50% utilization improvement, and 1,800 block hours flown under a wet lease for TUI in Europe .
Strategic milestones: Closed $35M debt facility; signed LOIs for additional A320/A321 aircraft; pilot headcount increased from 60 to 120–125 (four crews per aircraft), positioning for growth .

What Went Wrong

Profitability headwinds: GAAP net loss $(4.88)M and diluted EPS $(0.08); EBITDA $(1.76)M and Adjusted EBITDA $(1.20)M remained negative despite revenue strength .
Elevated OpEx from growth investments: ~$5.75M direct costs for pilot hiring/training in Q3; aircraft rent rose 38% QoQ; total operating expenses up 17% QoQ .
Higher interest burden: Q3 interest expense increased to $2.56M, reflecting capital needs amid fleet and infrastructure expansion .

Financial Results

Consolidated P&L snapshot

Metric	Q3 2022	Q2 2023	Q3 2023
Revenue ($)	$30,790,240	$31,475,076	$42,576,899
Operating Income (Loss) ($)	$795,975	$(6,776,462)	$(2,329,994)
Net Income (Loss) attributable to Company ($)	$163,631	—	$(4,883,645)
Diluted EPS ($)	$0.00	—	$(0.08)

Notes: “—” indicates not disclosed in available Q2 documents.

Non-GAAP performance

Metric	Q3 2022	Q3 2023
EBITDA ($)	$989,595	$(1,764,423)
Adjusted EBITDA ($)	$1,059,310	$(1,195,367)
EBITDAR ($)	$5,016,818	$8,204,647
Adjusted EBITDAR ($)	$5,016,818	$8,204,647
Adjusted EPS ($)	$0.00	$(0.08)

Reconciliation highlights: Q3 adjustments reflect share-based comp ($0.57M) and prior debt termination cost ($0.95M); management will no longer adjust to exclude pilot hiring/training costs going forward .

KPIs and operating metrics

KPI	Q3 2022	Q2 2023	Q3 2023
Block Hours Operated	2,380	3,585	6,487
Pilot Headcount	60	120	125
Total Operating Expenses ($)	$29,994,265	$38,251,539	$44,906,891

Fleet snapshot: Q2—9 passenger/2 cargo; Q3—10 passenger/3 cargo; delivery of a third A321 freighter late September .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($)	FY 2023	$140–145M (Q1 commentary)	$150+M; ~95% contracted ($143M)	Raised in Q2, Reaffirmed in Q3
Block Hours	Q4 2023	—	>6,000 projected	—
Block Hours	FY 2023	~13,000 contracted as of Aug (Q2 outlook)	~17,000 flown/contracted as of Nov 2; potential +1,800	Raised/updated
Fleet additions	Q4 2023	—	2 A320 passenger in Nov/Dec; 2 A321 freighters in Dec	New detail

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2023)	Previous Mentions (Q2 2023)	Current Period (Q3 2023)	Trend
Supply chain/MRO delays	Heavy maintenance and conversion delays constrained aircraft availability; cargo ramp delayed	Continued delays; easing expected; mitigation via maintenance planning	Noted improved efficiency; 50% utilization improvement	Improving operations despite industry constraints
Government contracts	Major U.S. government work deferred in Q1; ramp expected in May	ICE/CBP/HHS programs ramping; up to four aircraft requested	Significant increase in government flying; new $4M ACMI government contract	Strengthening demand
Cargo strategy	First A321F operating; long-term ramp envisioned; 15 freighters tied up	Two freighters fully sold; Caribbean and Central America focus; Colombian AOC progress	Third A321F delivered; two more A321Fs expected in December	Accelerating fleet build-out
Pilot hiring/training	Aggressive hiring; significant upfront training costs	Investment in crews impacting profitability but enabling summer surge	~$5.75M direct pilot hiring/training costs in Q3; will no longer adjust to exclude	Near-term drag, long-term capacity build
Capital structure/uplisting	Working on financing; mindful of dilution; uplist targeted later in 2023	Axar $35M facility closed; uplisting contingent on share price and positive equity	Axar financing closed; no pressing need for equity raise near-term	Improved funding flexibility

Management Commentary

“GlobalX had another record quarter… Total revenue was up 38% versus the third quarter of 2022 with a GAAP operating loss of $2.3M, which is $4.4M reduction compared to the second quarter of 2023.” — Ed Wegel, CEO .
“We closed a $35 million debt facility which will fund our rapid growth of operations and facilitate working capital needs in 2024 and beyond… We achieved vastly improved operational efficiency evidenced by the improvement in aircraft utilization by 50%.” — Ed Wegel, CEO .
“With this capital… we believe we have enough cash to operate our business plan to grow our fleet… The deal terms are $35 million loan repayable over six years… 15% interest rate… ten million warrants priced at $1.” — Ryan Goepel, CFO (Q2 call) .

Q&A Highlights

Note: A full Q3 2023 earnings call transcript was not available in the document repository. Highlights below reflect recent quarter commentary most proximate to Q3.

Uplisting prerequisites and timing: Management emphasized need for >$2 share price and positive shareholder equity; Axar financing provides flexibility to time an uplist appropriately .
Pilot training cost treatment: Adjustments previously excluded non-revenue training for growth crews; management clarified the distinction versus recurring training costs ; Q3 release indicates they will no longer present adjusted earnings excluding pilot hiring/training amounts .
Government programs: ICE/CBP/HHS activity increasing; potential to allocate up to four aircraft; operational protocols in challenging markets addressed (e.g., Haiti) .

Estimates Context

Analyst consensus (S&P Global) for Q3 2023 EPS and revenue was unavailable via our SPGI endpoint at time of analysis due to request limits; therefore, beats/misses versus Wall Street cannot be assessed here. Values would be retrieved from S&P Global if accessible.*
Given strong revenue growth (+38% YoY) and narrowed operating loss, near-term estimate revisions may focus on improved utilization and higher contracted revenue visibility, offset by higher interest expense and growth-related OpEx .

Key Takeaways for Investors

Sequential profitability trajectory improved materially: Operating loss narrowed by ~$4.45M QoQ as utilization and block hours surged; watch for continued operating leverage in Q4 with >6,000 projected block hours .
Revenue visibility is high: ~95% of FY revenue contracted with incremental capacity from incoming aircraft—reduces execution risk on guidance .
Growth investments are peaking: ~$5.75M Q3 pilot training/hiring costs should translate to higher productivity; management will no longer adjust to exclude these costs, increasing transparency .
Balance sheet flexibility: $35M Axar financing and $17.3M cash/restricted cash support fleet and infrastructure ramps without immediate equity needs—catalyst for institutional interest and future uplisting preparations .
Cargo growth vector strengthening: Third A321F delivered with two more expected in December; Caribbean/Central America routes expanding—monitor margin contribution as fleet scales .
Government demand resilient: Increased flying across agencies and a new $4M ACMI contract bolster contracted hours and revenue mix .
Risk monitor: Interest expense now a meaningful headwind; aircraft rent and maintenance tied to activity levels—track cost discipline versus revenue growth and mix (ACMI vs. full charter) .

Citations:

Q3 2023 8-K and Exhibit 99.1 press release, financials, non-GAAP reconciliations: .
Q3 investor slides (Ex. 99.2): .
Q2 2023 earnings call transcript: .
Q1 2023 earnings call transcript: .
Additional Q3 press release (Sept. 6, 2023): .
Company events page for Q3 webinar reference: .

Disclaimer: Estimates retrieved from S&P Global; unavailable due to request limits at time of analysis.

Global Crossing Airlines Group Inc. (JETMF)·Q3 2023 Earnings Summary