Mr. Ed Wegel reports

GLOBAL CROSSING AIRLINES ANNOUNCES $97.1M IN REVENUE FOR 2022

Global Crossing Airlines Group Inc. has released fourth quarter and 2022 annual financial results. All financial figures are in U.S. dollars.

Full-year and fourth quarter 2022 financial results

Total operating revenues for the 2022 year and Q4 2022 were $97.1-million and $32.5-million, respectively. This represents an increase of $82.8-million or 742 per cent and $21.3-million or 191 per cent when compared with the 2021 year and Q4 2021, respectively. This increase was driven by Global Crossing's continued growth in operations, including number of available aircraft during the year from three in 2021 to seven in 2022. In addition, Global Crossing operated 2,463 revenue block hours in Q4 2022, representing an 89-per-cent increase over the number of block hours operated in Q4 2021.

Ed Wegel, chair and chief executive officer of Global Crossing, commented: "We are pleased to report strong financial and operational results for 2022. We reached $97.1-million in revenue, beating previous guidance of $90-million by 8 per cent. GlobalX finished 2022 with eight A320 family passenger aircraft, which resulted in full-year 2022 adjusted [earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs] (non-[generally accepted accounting principles]) (1) of $8.9-million and a 2022 adjusted [earnings before interest, taxes, depreciation and amortization] (non-GAAP) (1) of ($6.6-million). Q4 2022 results were an adjusted EBITDAR of $5.3-million, an adjusted EBITDA of approximately $845,000 and adjusted [earnings per share] (non-GAAP) (1) of nil. Those results reflect our continued efforts to expand charter operations throughout North and South America, as well as the Caribbean, by adding 79 new customers during 2022."

Mr. Wegel continued: "We continued to invest heavily during Q4 in our systems, training and development of our people as we added over 55 pilots, 86 flight attendants, built our cargo operating systems and continued work on important certifications. We incurred cargo-related expenses in anticipation of A321 freighter (A321F) deliveries and revenue operations in Q4, which did not ultimately occur. As a result, we expect compensation to be paid because of the late deliveries, which we will receive in 2023."

2023 update

Mr. Wegel added: "We remain bullish on 2023 with our cargo certification completed and our first A321F started revenue operations in February. We will take delivery of the second A321F and will be operating revenue flights in early [second quarter]. We are providing guidance of expected full-year revenue in 2023 of at least $140-million from our base plan of nine passenger and two freighter aircraft. In addition to this fleet of 9/2, our target plan for 2023 is to add up to four A321Fs and three A320 passenger aircraft. We have developed a strong reputation as a reliable operator, and we will continue to add new customers and build on existing customers."

Cost performance

Total operating expense for 2022 year and Q4 2022 increased 244 per cent and 115 per cent compared with 2021 year and the Q4 2021, to $33.2-million and $15.4-million, respectively. These increases were primarily driven by additional aircraft and number of block hours operated, as well as investments made to initiate our cargo operations in first quarter 2023.

Liquidity

Global Crossing ended the quarter with $11.7-million in current assets, an increase of $2-million compared with year-end 2021 and $300,000 compared with Q3 2022. The increase is mainly due to the company's acquisition of an airframe for teardown that resulted in approximately $1.4-million in parts available for sale as of Dec. 31, 2022.

Current liabilities increased from $14.7-million in 2021 to 27.8-million in 2022, mainly due to an increase of $6.2-million in leased aircraft liabilities as Global Crossing increased its fleet from one aircraft in August, 2021, to eight aircraft by December, 2022, $1.6-million in aircraft fuel liabilities, $1.6-million of passenger taxes liabilities, $1.0-million of ground-handling liabilities primarily due to the addition of four leased aircraft added during 2022 and $1.4-million from the spares deal.

Global Crossing is seeking additional capital in the form of debt, convertible debt or equity to further invest in the business and facilitate the continued growth of the fleet, including the acquisition of additional leased aircraft, as well as for additional working capital.

Outlook

Guidance items provided in this release are based on the company's current estimates and are not a guarantee of future performance. Global Crossing is providing revenue guidance of at least $140-million in revenue for 2023 based on a fleet of nine passenger and two cargo aircraft, a 44-per-cent increase. Currently, $81.5-million of this revenue is contracted, and an additional $60-million is currently being actively quoted, and Global Crossing anticipates that most of this will become contracted. It will provide updated guidance as it takes delivery of additional aircraft to the current projected fleet of nine passenger and two cargo aircraft.

(1) A non-generally accepted accounting principle financial measure.

We seek Safe Harbor.