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Global Crossing Airlines Group Inc. (JETMF)·Q4 2023 Earnings Summary

Executive Summary

  • Q4 2023 delivered record quarterly revenue of $53.5M; full-year revenue reached $160.1M, exceeding the previously reaffirmed FY2023 guidance of “$150+M” and marking 64.9% YoY growth. Bold beat: FY revenue beat guidance by ~$10M .
  • Profitability metrics improved sequentially: Q4 EBITDA was ($0.4)M vs Q3 EBITDA ($1.7)M; Q4 EBITDAR rose to $11.4M from $7.6M in Q3, indicating scaling benefits despite elevated training costs .
  • Liquidity strengthened: cash and restricted cash ended at $17.7M, up 31% vs YE 2022; management extended an existing facility agreement with GEM for 12 months .
  • Execution catalysts: accelerating fleet deliveries and expanding contracted block hours into Q4; management expects demand for passenger charters to “soar in 2024,” supported by increased utilization and operational efficiency .

What Went Well and What Went Wrong

What Went Well

  • Scaling revenue and utilization: Full-year revenue $160.1M (+64.9% YoY) and aircraft utilization up 26.3% as GlobalX more than doubled block hours to 18,072 in 2023 .
  • Sequential EBITDA improvement: Q4 EBITDA ($0.4)M improved vs Q3 ($1.7)M; Q4 EBITDAR $11.4M vs Q3 $7.6M, reflecting scale benefits and demand strength .
  • Management conviction and demand outlook: “We remain steadfast in our commitment to charting a course towards sustained profitability and operational excellence… expecting demand for passenger charters to soar in 2024” — Chris Jamroz, Executive Chairman .

What Went Wrong

  • Losses persisted: FY operating loss ($15.9)M and net loss ($21.0)M; while improving sequentially, profitability remains a key issue .
  • Elevated training costs weighed on margins: ~$7.0M pilot hiring and training spend in Q4 in anticipation of 1H24 aircraft deliveries, pressuring near-term EBITDA despite strategic necessity .
  • Balance sheet deficit and leverage: YE 2023 stockholders’ deficit ($19.9)M; notes payable rose to $29.17M, highlighting capital intensity and the need for continued disciplined execution .

Financial Results

MetricQ2 2023Q3 2023Q4 2023FY 2023
Revenue ($USD Millions)$31.475 $42.577 $53.5 $160.122
EBITDA ($USD Millions)—($1.764) ($0.4) ($13.574)
EBITDAR ($USD Millions)—$7.6 $11.4 $20.057
Operating Income/Loss ($USD Millions)($6.776) ($2.330) —($15.867)
Diluted EPS ($USD)—($0.08) —($0.37)
EBITDA Margin %—(4.1%) (0.7%) (8.5%)

Notes:

  • EBITDA Margin % computed from EBITDA / Revenue; citations reference the underlying EBITDA and Revenue sources.
  • EPS for Q4 2023 was not disclosed in the press release/filing set reviewed.

KPIs and Operating Metrics

KPIQ2 2023Q3 2023Q4 2023FY 2023
Block Hours Operated3,585 6,487 Projected >6,000 18,072
Aircraft Utilization Change—+50% vs prior period —+26.3% YoY
Fleet Size (as noted)9 PAX / 2 Cargo operating 10 PAX / 3 Cargo; +4 planned in Q4 +2 A320 and +2 A321F expected 14 aircraft YE
Pilot Count123+ with incremental captains starting Sept 11 125 —“more than doubles” YoY
Cash & Restricted Cash ($USD Millions)—$17.299 —$17.675
Aircraft Rent ($USD Millions)$6.830 $9.400 —$33.632

Segment breakdown: The company operates in passenger ACMI/charter and cargo; no segment revenue breakdown was disclosed in the Q4 2023 press materials reviewed .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ResultChange
Revenue ($USD)FY 2023“$150+M” reaffirmed (Nov 8, 2023) Actual $160.1M (Mar 6, 2024) Beat vs guidance
Block HoursQ4 2023>3,800 contracted as of Nov 2; anticipate >6,000 hours Operational update confirms strong Q4 flying (no final disclosed) Raised operational plan
Aircraft DeliveriesQ4 2023A320 in Nov & Dec; two A321 freighters in Dec YE fleet reached 14 aircraft Achieved deliveries
Liquidity FacilityFY 2023/early 2024Axar $35M debt closed (Q3) GEM facility agreement extended 12 months Extended

No specific 2024 numeric guidance (revenue/EPS/margins) was provided in the Q4 press release; management expressed positive demand and scaling expectations qualitatively .

Earnings Call Themes & Trends

Note: A formal Q4 2023 earnings call transcript was not available in the document catalog. The company hosted a Year End 2023 webinar on March 6, 2024; public transcript was not found in the repository. Webcast reference: Events & Presentations page (Year End 2023 link) .

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2023)Trend
Pilot hiring/trainingIncreased headcount to 123+; captains starting (Sept) . Pilot count rose to 125 in Q3 .~$7M invested in Q4 for pilot training/staffing ahead of aircraft deliveries .Scaling workforce ahead of fleet growth; short-term margin headwind.
Fleet expansionDelivery schedule: A320 Oct; 12th PAX aircraft Dec .Expected two A320 and two A321F in Q4; YE fleet target achieved .Accelerating deliveries; expanding cargo capability.
Revenue visibility/guidanceReaffirmed FY2023 $150+M; 95% contracted .Actual FY2023 $160.1M; record Q4 $53.5M .Upward trajectory; beat prior guidance.
Government/contractsNew $4M ACMI government contract; strong flying for multiple clients .“Significant increase in government flying” noted earlier; continued contracted block hours into Q4 .Stable to improving demand from repeat clients.
Financing/liquidity$35M debt facility closed (Axar) .GEM facility extended; YE cash/restricted cash $17.7M .Liquidity improved; leverage increased.

Management Commentary

  • “As we reflect on a year marked by unprecedented growth, we remain steadfast in our commitment to charting a course towards sustained profitability and operational excellence… we are expecting demand for passenger charters to soar in 2024.” — Chris Jamroz, Executive Chairman .
  • “The Company’s average fleet increased from 7 in 2022 to 11 in 2023… strong passenger demand drove increased activity and higher rates… efficiency and benefits of a larger scale operation enabled a 15% improvement in operating performance.” — Ryan Goepel, President & CFO .
  • “GlobalX had another record quarter… Total revenue was up 38% versus the third quarter of 2022… operating loss of $2.3M, a $4.4M reduction compared to the second quarter of 2023… fleet now at 10 passenger and 3 cargo aircraft…” — Ed Wegel, Chair and CEO (Q3) .

Q&A Highlights

A Q4 2023 earnings call transcript was not available in the repository. The company hosted a Year End 2023 webinar on March 6, 2024; no public transcript retrieved. Reference: Events & Presentations (Year End 2023 webcast) .

Estimates Context

  • Wall Street consensus estimates via S&P Global for Q4 2023 were unavailable due to access limits; therefore, comparisons to consensus EPS/revenue could not be provided at this time. Values would normally be retrieved from S&P Global and denoted with an asterisk and disclaimer.

Key Takeaways for Investors

  • Bold beat: FY2023 revenue of $160.1M exceeded reaffirmed $150+M guidance; Q4 revenue reached $53.5M, a company record .
  • Sequential profitability improvement: Q4 EBITDA ($0.4)M vs Q3 ($1.7)M; Q4 EBITDAR $11.4M vs Q3 $7.6M, suggesting scale is working despite training costs .
  • Capacity-driven strategy: ~$7M Q4 training investment positions the airline to crew new aircraft arriving in 1H24; near-term margin pressure likely offset by contracted block hours and rising utilization .
  • Liquidity trend: YE cash/restricted cash $17.7M; GEM facility extended; monitoring leverage and stockholders’ deficit remains prudent .
  • Demand visibility: High proportion of contracted hours and repeat blue-chip clients (government, sports, brokers) underpin revenue stability into Q4 and beyond .
  • Cargo growth: Continued ramp in A321 freighter operations alongside passenger ACMI/charter expands mix and potential margin contribution over time .
  • Actionable: Expect continued narrative around scaling, utilization, and contract visibility to drive sentiment; watch upcoming deliveries, crew readiness, and potential 2024 guidance updates for catalysts .