Mr. Eddy Doyle reports

CANADA JETLINES ANNOUNCES Q3 2023 RESULTS

Canada Jetlines Operations Ltd. has released Q3 2023 financial and operating results. All financial figures are in Canadian dollars and in accordance with international financial reporting standards as presented in the company's financial statements filed on SEDAR+.

Q3 2023 financial results:

• Operating revenues of $13.4-million, a sequential increase of 52.1 per cent compared with Q2 2023;
• Operating income of $804,000, with an operating margin of 6 per cent, a sequential increase of $1.28-million compared with Q2 2023;
• Adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) of $1.9-million, a sequential improvement of over $1.6-million compared with Q2 2023;
• A positive adjusted EBITDAR margin of 14.37 per cent;
• A positive net income of $121,000, a sequential improvement of over $1.06-million compared with Q2 2023;
• Third quarter net cash flows from operating activities of $5.3-million, a sequential improvement of over $3.5-million compared with Q2 2023.

Eddy Doyle, chief executive officer and president of Canada Jetlines, commented on the quarter: "We are extremely pleased to report strong financial results for Q3 2023. It is a rare achievement for an airline to have positive net income in any quarter during its first 12 months of operations. In addition to our Las Vegas and Cancun destinations, we started scheduled service from Toronto to Orlando on Oct. 30 and will be starting Toronto to Montego Bay, Jamaica, in December, 2023. We are well positioned to service the demand heading into the holiday season."

Total operating revenue for the third quarter 2023 was $13.4-million compared with $8.8-million in the previous quarter, an increase of 52.1 per cent. The company continues to grow its charter and ACMI (aircraft, crew, maintenance and insurance) operations, generating $12.28-million in revenue in Q3 2023 compared with $6.34-million in Q2 2023, representing an increase of 93.6 per cent.

Total operating expenses for tQ3 2023 were $12.59-million as compared with $9.23-million in the previous quarter, an increase of 36.4 per cent. This increase was primarily driven by the increase in flight operations.

Total assets increased by 62.4 per cent to $45,247,736 at the end of Q3 2023, from $27,289,573 as of Dec. 31, 2022. This increase is mainly due to the increase in cash generated from operations, as well as an increase in lease assets associated with the now three aircraft, as compared with its two aircraft in December, 2022.

Total liabilities increased by 76 per cent to $50,982,110 at the end of Q3 2023, from $28,948,171 as of Dec. 31, 2022. The increase was made up of the liabilities associated with lease liabilities for the three aircraft, as compared with two aircraft in December, 2022. The increase is also attributable to 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.

Liquidity

The company ended the quarter with $8.25-million in current assets, an increase of $5.1-million compared with Dec. 31, 2022. This is mainly due to the increase in cash balance as a result of revenues from increased flight operations.

Current liabilities increased from $8.2-million as of Dec. 31, 2022, to $17.8-million at the end of the current quarter, mainly due to an increase of $2-million in accounts payable and accrued liabilities. In addition, there was a $5-million increase in deferred revenue for cash collected for future flights. There was also an increase in lease liabilities of $2-million due to the increase in the number of aircraft leased during the quarter.

During the quarter, Canada Jetlines secured a $13.5-million financing through a non-brokered private placement. The completion of the full financing remains subject to receipt of shareholder approval at a special meeting of shareholders scheduled for Nov. 14, 2023. The company intends to utilize the proceeds of the financing to finance aircraft acquisition, and for general corporate and working capital purposes, in line with the strategic road map.

This news release should be read in conjunction with Canada Jetlines' condensed interim consolidated financial statements for the nine-month period ended Sept. 30, 2023, and management's discussion and analysis available on SEDAR+.

About Canada Jetlines Operations Ltd.

Canada Jetlines is a Canadian leisure airline committed to providing an exciting travel experience to its passengers. With a growing network of destinations, Canada Jetlines is dedicated to connecting Canadians with some of the world's most captivating and sought-after locations.

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