Global Crossing Airlines Group (JET) Q2 2024 earnings summary

Executive summary

• Achieved GAAP profitability in Q2 2024 with net income of $0.3 million, reversing a $7.5 million loss in Q2 2023, driven by 83% revenue growth and operational efficiencies.

• Strategic focus on core operations, scaling fleet, and expanding key customer relationships, especially in government contracts and ACMI demand.

• Record block hours flown and strong momentum in passenger and ACMI businesses, with robust passenger charter demand.

• Company shifted focus to core narrow-body charter operations, canceling non-core projects and prioritizing aircraft additions and efficiency.

• Secured a five-year government contract expected to generate $65 million in annualized revenue and completed first Department of Defense flight.

Financial highlights

• Q2 2024 revenue rose 83% year-over-year to $57.5 million, up from $31.5 million; operating income was $2.5 million versus a $6.8 million loss YoY.

• Net income reached $0.3 million, reversing a $7.5 million loss in Q2 2023; EPS improved to $0.01 from a $0.13 loss.

• EBITDA/EBITDAR surged to $18.7 million from $0.5 million year-over-year.

• Cash and restricted cash at quarter-end was $10.4 million, down from $12.2 million at March 31, 2024.

• Operating expenses increased to $55 million, mainly due to fleet and contract expansion.

Outlook and guidance

• Management expects continued growth and profitability as fleet expands and new contracts are executed, with strong passenger market demand through 2024 and 2025.

• Cargo segment improvement anticipated in late Q3 and Q4, with upside potential from new contracts, but recovery timing remains uncertain.

• Fleet expected to grow to 16 passenger and 6 cargo aircraft by end of 2024, and 22 passenger and 6 cargo aircraft by end of 2025.

• Five additional aircraft are planned to be brought to market over the next 15 months.