Mr. Percy Gyara reports

CANADA JETLINES ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS

Canada Jetlines Operations Ltd. has released first quarter 2023 interim financial results. All financial figures are in Canadian dollars and in accordance with IFRS as presented in the annual consolidated financial statements.

First Quarter 2023 Interim Financial Results

Total operating revenues for the first quarter 2023 were $5.1 million as compared to $3.2 million in the quarter ended December 31, 2022 (the "Prior Quarter"), an increase of 59%. The Company continues to increase the operations of charters and ACMI (Aircraft, Crew, Maintenance, and Insurance) flights generating revenues of $3.38 million this quarter as compared to $2.4 million in the Prior Quarter, representing an increase of 57%.

Total operating expenses for the first quarter 2023 were $8.15 million as compared to $6.7 million in the Prior Quarter, an increase of 21%. Increases were primarily driven by increased flying activity as a result of higher contract volume and the operation of two aircraft for the entire quarter.

Total assets increased to $28,366,094 from $27,289,573 as at December 31, 2022. The increase in total assets is primarily attributable to an increase in cash from financing activities.

Total liabilities increased to $33,351,536 from $28,948,171 as at December 31, 2022. The increase was made up of the liabilities associated with increase in deferred revenue and increases in accounts payable and accrued liabilities, explained by the timing of payments and invoices received at the end of the period.

Management Commentary

Eddy Doyle, CEO and President of Jetlines commented: "We are pleased to report that several key milestones were achieved in Q1 2023, in February 2023 the Company was proud to introduce Las Vegas as its first international scheduled destination, this was followed in March with a new route from Toronto to Cancun, Mexico. Charter flights and ACMI lease contracts continued to grow throughout the first quarter of 2023 and in March the Company announced it was chosen to provide an aircraft and crew for a 5-month ACMI contract beginning at the end of March, 2023."

Mr. Doyle continued: "In March, Canada Jetlines announced it was in discussion with Qatar Airways for a potential codeshare agreement where Canada Jetlines would provide service between Toronto and Doha, subject to government approval and completing all applicable agreements between the two airlines. This would offer Canadian travelers access to Qatar Airways' unparalleled network via Doha to destinations in the Middle East, Africa, Indian Subcontinent and across Asia. The Company is continuing to work through the Canadian government approval process and definitive documentation with Qatar Airways."

Mr. Doyle concluded: "Looking forward, Canada Jetlines has recently announced a number of other charter contracts, including with two Canadian football teams. Canada Jetlines 3rd aircraft is expected to be delivered in July 2023 and the Company intends to add up to two additional aircraft to its fleet in 2023 and continue to grow its schedule and Charter/ACMI business."

Liquidity

The Company ended the first quarter of 2023 with $5.1 million in current assets, an increase of $2 million compared to year end 2022. The increase is mainly due to the increase in cash balances from financing activities.

Current liabilities increased from $8.2 million at the end of the Prior Quarter to $11.8 million in the current quarter, mainly due to an increase of $1.1 million in accounts payable and accrued liabilities. In addition, there is a $2.5 million increase in deferred revenue for cash collected for future flight operations.

Based on the Company's working capital position, the Company will need to raise additional capital during the next twelve months and beyond to support its business plan. The Company is seeking additional capital in the form of debt, convertible debt or equity in order to further invest in the business and facilitate the continued growth of the fleet, including the acquisition of additional leased aircraft, as well as additional working capital.

This news release should be read in conjunction with Canada Jetlines' condensed interim consolidated financial statements for the three month period ended March 31, 2023 and Management's Discussion and Analysis available at www.sedar.com.

We seek Safe Harbor.