Mr. Ed Wegel reports

GLOBAL CROSSING AIRLINES ACHIEVES RECORD THIRD QUARTER REVENUES AND EBITDAR

Global Crossing Airlines Group Inc. (GlobalX) has released its third quarter 2023 financial results, which saw accelerating positive financial and operational growth. All figures are in U.S. dollars and prepared in accordance with U.S. GAAP (generally accepted accounting principles).

Third quarter 2023 highlights and financial results:

• Revenues of $42.6-million;
• EBITDAR (operating income (loss), plus depreciation, amortization, interest, taxes and aircraft rent) of $7.6-million;
• Block hours flown increases 173 per cent over Q2 2022;
• Aircraft utilization jumps 50 per cent;
• Pilot count rises to 125.

"GlobalX had another record quarter and achieved a new high in block hours operated and reported revenue during the busy summer season," said Ed Wegel, chair and chief executive office of GlobalX. "Total revenue was up 38 per cent versus the third quarter of 2022 with a GAAP operating loss of $2.3-million, which is $4.4-million reduction compared to the second quarter of 2023. GlobalX has made great progress towards the goal of sustained profitability through the growth of our fleet and scaling of our operations. The fleet is now at 10 passenger and three cargo aircraft, with four additional planned aircraft to be added in Q4, which will underpin double-digit growth planned for 2024."

GlobalX operated 6,487 revenue block hours in Q3 2023, representing a 173-per-cent increase over the 2,380 block hours operated in Q3 2022. This also compares favourably with 3,585 block hours operated in Q2 2023, an increase of 80 per cent. Q3 2023 EBITDAR on an unadjusted basis was $7.6-million, EBITDA (earnings before interest, taxes, depreciation and amortization) was negative $1.7-million and EPS (earnings per share) was negative eight cents. Q3 2023 adjusted EBITDAR was $8.2-million, adjusted EBITDA was negative $1.2-million and adjusted EPS was negative eight cents.

The revenues generated during Q3 allowed the company to accelerate pilot hiring and training with approximately $5.75-million of direct costs spent in the third quarter on hiring and training new pilots required to crew the additional aircraft to be delivered through year-end. This continued spend is critical to the future of the airline as these crews will serve as the backbone of the operation as new aircraft are delivered. GlobalX has determined going forward it is important to highlight the money being spent on new pilot hiring and training, which is reflected in the company's operating expenses but will no longer present an adjusted earnings number excluding these amounts.

Ed Wegel, chair and chief executive officer of the company, stated: "We achieved several important milestones in the third quarter of 2023. We closed a $35-million debt facility, which will fund our rapid growth of operations and facilitate working capital needs in 2024 and beyond. Hiring and training in key operational groups in preparation for the delivery of four potential additional aircraft in the fourth quarter of this year. We achieved vastly improved operational efficiency evidenced by the improvement in aircraft utilization by 50 per cent. The company has more than 3,800 block hours contracted for Q4 of 2023 and anticipate operating over 6,000 hours in the quarter, which keeps us on track to meet our block hour and revenue goals for the year."

Q3 highlights:

• Closed a $35-million debt facility with Axar Capital;
• Signed LOIs (letters of intent) for two A320 passenger aircraft and one A321 passenger aircraft;
• Increased the company's pilot head count from 60 to 120, providing GlobalX with four crews per aircraft;
• Flew over 1,800 block hours under a wet lease for TUI, one of the largest leisure carriers in Europe;
• Took delivery of one A319, to be used primarily in 68-seat VIP configuration;
• Significant increase in government flying across all agencies;
• A third A321 freighter was delivered in late September;
• Completed the financing and signed the lease for the maintenance facility to be built at Fort Lauderdale International Airport at an approximate cost of $27-million.

Liquidity

GlobalX ended the quarter with $17.3-million in cash and restricted cash, which is up 46 per cent from the amount of cash and restricted cash available on Dec. 31, 2022.

2023 update and outlook

Q4 update:

• Expected to take delivery of two A320 passenger aircraft -- one in November and one in December;
• Expected to take delivery of two A321 freighter aircraft in December;
• Projected to fly over 6,000 block hours in the quarter.

Guidance items provided in this release are based on company's current estimates and are not a guarantee of future performance. As of Nov. 2, 2023, the company has flown or contracted approximately 17,000 block hours and expects to contract an additional 1,800 block hours subject to actual aircraft delivery dates. This compares with 10,615 block hours contracted for full-year 2022. Revenue guidance for 2023 remains $150-million, a 54-per-cent increase over 2022. Currently, $143-million of this revenue, or approximately 95 per cent, has been flown or contracted.

Conference call/webcast detail

GlobalX will be hosting a webinar on Nov. 8, 2023, 2023, to provide a business update and discuss the Q3 results.

When:  Nov. 8, 2023, 1 p.m. Eastern Time (United States and Canada)

Topic:  Global Crossing Airlines -- Q3 2023 earnings release and management update

Please register on-line in advance for this webinar.

After registering, you will receive a confirmation e-mail containing information about joining the webinar.

About Global Crossing Airlines Group Inc.

GlobalX is a U.S. 121 domestic flag and supplemental airline flying the Airbus A320 family aircraft. GlobalX flies as a passenger ACMI (aircraft, crew, maintenance and insurance) and charter airline serving the U.S., Caribbean, European and Latin American markets. GlobalX is also now operating ACMI cargo service flying the A321 freighter.

We seek Safe Harbor.