Mr. Eddy Doyle reports

CANADA JETLINES ANNOUNCES Q2 2023 FINANCIAL RESULTS AND 72.8% INCREASE IN OPERATING REVENUE VERSUS Q1, 2023

Canada Jetlines Operations Ltd. has released second quarter 2023 interim financial results. All financial figures are in accordance with international financial reporting standards.

Second quarter 2023 interim financial results

Total operating revenues for the second quarter of 2023 were $8.8-million as compared with $5.1-million in the previous quarter, an increase of 72.8 per cent. The company continues to increase the operation of charter and ACMI (aircraft, crew, maintenance and insurance) flights, generating $6.34-million this quarter as compared with $3.38-million in the previous quarter, representing an increase of 87.5 per cent.

Total operating expenses for the second quarter of 2023 were $9.23-million as compared with $8.15-million in the previous quarter, an increase of 13 per cent. The increase was primarily driven by increased flying activity.

Total assets increased to $27,860,429 at the end of the current quarter from $27,289,573 as at Dec. 31, 2022. The minor increase in total assets is primarily attributable to an increase in current assets that was partially offset by a decrease in right-of-use assets due to depreciation.

Total liabilities increased to $33,753,436 at the end of the current quarter from $28,948,171 as at Dec. 31, 2022. The increase was made up of the liabilities associated with an increase in deferred revenue and an increase 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, chief executive officer and president of Canada Jetlines, commented: "We are pleased to report that several key milestones were achieved in Q2 2023. The company has achieved exceptional flying hours in Q2 2023 as compared to Q1 2023, an increase of 265 per cent, and a 72.8-per-cent increase in its operating revenue. Canada Jetlines also took delivery of its third aircraft at the end July, 2023. The company intends to add up to two additional aircraft to its fleet in 2023 and continue to grow its schedule, with the upcoming fall/winter season, and grow its charter/ACMI business."

Liquidity

The company ended the quarter with $5.1-million in current assets, an increase of $2-million compared with Dec. 31, 2022. The increase is mainly due to the increase in cash balance.

Current liabilities increased from $8.2-million at Dec. 31, 2022, to $13.1-million, mainly due to an increase of $800,000 in accounts payable and accrued liabilities. In addition, there is a $4-million increase in deferred revenue for cash collected in terms of future flying.

Based on the company's working capital position, the company will need to raise additional capital 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 six-month period ended June 30, 2023, and the related management's discussion and analysis, which are available on SEDAR+.

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