Earnings call transcript Q2 2023

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Grant Howard

Well, good morning or afternoon, depending upon where you are. My name is Grant Howard, and welcome to the Second Quarter Financial Report and Webinar with CEO, Ed Wegel, Global Crossing Airlines; and Ryan Goepel, the Chief Financial Officer. Exceedingly good results compared to Q2 of last year.

So gentlemen, with that, would you please start the webinar.

Ed Wegel

Sure. afternoon, good and Grant, everyone. Thanks, us Thanks discuss that can so second for quarter joining our results. we today

Our second year, as quarter the was the ready a success, both flying summer rest block we to through flown of for work the number of in hours as the preparatory well this the rest completed get through of terms of XXXX.

May in quarter, million financing course of $XX July. we closed over we our and negotiated also, which During the June, the

those things, setting of very So good success us a all combination for a us in quarter of the for up future.

the Like MROs every the other today, who AXXXs to are maintenance checks been airline chain heavy issues our in impacted supply by converting at our and as do staffing world the freighter. well the have from we where MROs, we as

For and were March, you to for this start in example, October freighter, then June certificate our second June last then revenue place give was year, delivery flying to XX. our we January originally on year, able delivered XXXX, to scheduled of it on then instance, just an finally

in issues built issues the the got XX quarter, MROs. days, only of of that airplane flying had chain in revenue, XX we we While XX because again, for and for supply days staffing of days at

themselves. few in that is supply issues and longer-term over business chain flying The and aircraft until other we coin staffing and see airlines, for next same us the resolved side contracts for issues of in that resulted to new delay us faced, OEMs, the we have those face that ACMI the deliveries from several they that continue charter years the

two aircraft their the lost As of in well maintenance out of two quarter, aircraft delays our of during months of checks. the because scheduled heavy equivalent we getting

maintenance getting and slightly checks. about the of their delayed of impacted we our moment. we’ll airplanes these went which not that’s available in of chain were scheduled a An in cannot supply And month to generate cycle that they revenue through their that out staffing had discuss and against issues, for us normal these. a of because So airplane quarter, both revenue,

those GlobalX having team flew sure every the issues, in make testament pulled hours we off block XXX at off charter our for members environment. to are a and efficiency through fought this the who and fleet. We flew X,XXX scheduling in to in My hats a tough we them maximize QX,

of and next but seen accomplish announcements as We’ve now to European the with to airlines year chain aircraft are expanding flying late partnerships to this as delivered our us, months, all European ACMI on we easing these supply flying. XX about ensure make our summer to working issues over contract cover soon some can to expect well we we

our fill winter to to enough per state classes we starting have aircraft we objective fly and November recruit, pipeline and to be. have pilots start was Our and hire have train who robust successful now. should schedule over to of little the pilots during crews very class pleased September October, the that four the and a to And where quarter, into summer signed a in right we letters we’re we’re

fill class Day, officers and September instance, very to our captains for Labor eight qualified continue after our aircraft fly September and schedule. our already class, and five of right captains. has start class The hired. And pipeline first will has has our captains August class August we Our to man started,

the Axar closed to second quarter, a the Management, with through in we financing moment. As will which you Capital subsequent walk we a event

we Lauderdale the expect new finally ground Airport, to next days. facility and maintenance and International Ft. We the XX within XX on financing have our finalized break lease to of at that

good very AXXX more two are this very, which will for year. airplanes And we for delivered leases signed ex-Alaska us, aircraft, later be which AXXXs,

will We of well for rest year that freighters during announcements as have as signed additional some soon the some XXXX. this we about for also make delivery in

So pipeline most to aircraft we to delivered well. our importantly, pipeline us on we contracts and certificate to that those robust signing and to pilots, of aircraft have are of and put of be a a robust list robust pilots a very charter utilize very clients those

get that, So And we’ll with after presentation to that, then about that we some short the we’d like into quarter. questions. a answer have

and an we’ll update, of financing, investor comment fleet results, terms on we’ll through cargo our an and go updates in So exchange quarter listings. update then you give our on the XXXX Axar the some update on

Axar I’ll Ryan main agreement. our through walk that us So terms who financing, Goepel, ask the was negotiator the to of on

Ryan Goepel

August we partner X, going Axar that thank we Axar an great a fund $X.X our in Ed. us forward. aviation, With experienced is for financing Capital. and is has to a with closed Great, you, be going believe billion

this doing you raised. higher of are we of all these deal in seem this the we’re the secure as fees, in to recognize cost lowest And interest rate only partner, since aspects of is the is started numbers cost that the equity than significantly current this plan. warrants One of not one some this secure we but cost to on raised looking were of but an capital When all high, and required airline. we’ve environment, key recognize looking I to execute offered, the our were capital growth Prior to capital capital this, might factor things we at raises. our we’ve of of

With business been to six we’ve grow capital, have and ability rate, what loan and for to $XX can’t fleet to at we over this execute to forecasting the six years, priced – two our XX% million repay months. last to basically we OID we twelve the believe warrants our with The however, with enough cash plan terms repayable interest million deal ten the payments. X.XX% are semiannual interest $X, after years, a operate

were million rates. debt, $X.X of XX the worth we which at is refinanced months, higher in due of this, With the coming proceeds which next

very of we’re have Axar part again, so excited team. to the And

which excited and going is with incredibly we’re be to We’re allow on in to us this plan. financing to to working have our place, as them, excited execute this

Ed Wegel

Yes, let on few a me make comment. colored comments I’ll this. just

We’re very understand have Axar. have airlines in our in before. business. charter invested They They before. pleased invested They airlines with

try have be us, they’ll I a forward, get if speaks partner and and know we grow So, our people language presented partners us other with other going are we that to very who work for with and as that, us good and They us. work want to especially good airlines to knows And may opportunities we very, what I – very also with. doing. are to think

pleased So, this. with very

of able of our debt. interest are about XX% were cost by to our on good. rate reduce XX% cost to We very very, on And terms that we significantly this portion the current these we cycle interest market, in that where The the lower for given Axar believe are us a we to to work financing are very that terms company as and as grow, us we’ve need. shows got that the ensure with we that life in our excellent is very, willing debt

financing with agreed and move and financing. we ROTH we a very that They execute both both as us good that they Capital to got very Both forward we’ve had partner plan. advised agreed our good on very, terms, us this Axar business in Jefferies

we’ll signed the in passenger through. making gone these AXXX releases for we press announcements of be some we’re as But more LOIs, in that next signing of which seen few we’ve to our In from was two and quarter. freighters. two Some over highlights of the summarize, more QX just more That aircraft you’ve weeks. LOIs some which about QX, AXXX just

over pilots, XX we schedule, month end an needed attendants. are in hired flight that, the and to additional the of quarter hours XXX of per but is QX. accrued per trained training, additional and Those XX as fly and what in with with about talk pilots, aircraft We intense. very, XX We’ll XX, very summer which the XX the we’re

And to so they successful look to financing to And work. with were able more very, to fly we More that our that’s and world. is and where that. coming us up saying, highlights very And ramp in schedule. crews the we doing the are want to to in we this very place, be cabin and strong cockpit quickly come needed outside now

very, that. about very good feel we So

the ago. months We Kingdom operator which a to authorization, complement few country is country third TCO operator a received EASA third our United received we that authorization

a we getting request the from into now are to be will very the soon. We and TCO UK and Europe, fly Kingdom this into using United

We’re that place. able to very, in that very pleased we’re put

other we this few we also, the three-week but term for as as for of so who for busy leading Europe. flying flying We contract. airplanes airlines quarter, flew summer, the They in During about a more be XXX hours ULCCs to on Wizz we’re over a longer here that, from in asked months. one that flew Europe and Wizz, because getting period. But the like Toei unable next the well were and them do we’ll two more believe in

started also ended flying completion, performance we Canada. performance time lease flawless that second August XXX% for that. a Lynx contract the about just on on August. in – controllable Almost a XX% it We started wet flying on-time We’ve we in concluded for quarter, And in X. us,

XXX have Wizz, factory. And the those MAX AXXXneos and deliveries their new of at are had two new Wizz that their their – Lynx, airlines examples from Their delayed aircraft. at

which we them airline with need like they fill of supplemental and airlines able lift they were was we and do published do us them, this and and is can in do, built to on. provide to lift, that, lot needed we we sold what and And for proved need. needed that the and can an of all that. to So this assist was They what And just other to it. had quickly to in crews the certifications react they airplanes quickly someone be the ply additional them, and needed provide and turn that a tickets to this step very in to to airline quarter ways, to there

and sense of you to Just give our the of operation. depth breadth a

visited is August XXX North Europe, flights. Latin cities XXXX. year America, the last over in since countries So and and had of America Canada. X,XXX this We’ve We XX

Europe. So the name. airplanes been and to Eastern airplanes word that do operate asked operate located about certainly to Middle of And to crews Kingdom United We’ve of more we’ve underlines this. out the put that. airplanes major East. global are been the we two with of feel very the of more to out our asked It We’ve out there. we operating for been And good of in expect airlines asked

state worried every like from day So our airlines is abilities which them. our to excellent, the spreading. would that That perform, crews, received the excellent. performance around which equipment, our calls to of word of is the we about is fly And us for world

$X about every day. worth quoting we’re point, this at million of believe, I And business

And so the as sense that market as gain ability gives the of a market well that our share size within of you to market.

don’t talk little to bit, So a QX why you this? take Ryan, about

Ryan Goepel

Sure.

of QX were XXXX, current for EBITDA, of million; million. training pilot we EBITDA, share-based negative million; requirements. revenue For $XX.X excess negative The had actual effectively comp and and adjusted for adjustments we made $X.X the $X.X pilots

Basically, the in is crews. made we’ve investment this

As operate, order to trained Ed talk talked the hired, how number number discuss about and the we’ve in is of three – we’ve we made the assets. up continually Global number required

assets more need which that made ultimately, we to to And which all in It’s and starting pay cruise. assets in our in operate certification, and add aircraft, you to three a are Our off which continue business in And add we lease our QX. on first we big QX QX, and to. aircraft investment is order this plan. to in execute continue and

$XXX,XXX of adjusted EBITDAR EBITDAR of and $X.X million. actual Our

increased us they maintenance actually Some X.X have ultimate not delays impacts occurred, on quarter had a million aircraft delivery basis. loss to our impacted month $X.X the would of EBITDA, and

said, the end Freighter plane large being accelerated up. significantly for the quarter freeze during summer. wrapping not There of available the kind picking a had been of crew of work. in all zero for That ice us Title being this of the XX with has delivery quarter a days, first that’s that was September. up the There required August training obviously, impact. and was on the on We That the versus quarter X.X%. work

program, we what And to then a happened. parts estimated gain a That’s been on sales small QX. had pushed is

So EBITDA, amount. increased or all happened EBITDA would a those actual things have significant we had not happened, by our of

impact. disappointed made I for there we improve the but discuss understand to opportunity going an an in with some which, we’ll there’s forward XXXX, We we’re the might So investment be think, results. that going see loss, as us you’re our the people to future, –

Ed Wegel

programs place as procedures we’re and And line not going that of forward. in putting us do certain impact items, those in so these much

now into a and going before heavy the maintenance and our We’re believe we forward. go planning will working maintenance lot reduce delays we airplanes MROs those of with doing

ease freighters means doing the freighter converted more conversions. the which to built-in AXXX freighters that delivery eliminated as the to we’ll already able months of freighter, that delays. more are and those up over The are shops delays those starting get efficient we’ve to potential conversion And become converted have in be several next been getting two

this learning we’re So difficulties with environment of well become as of conversion. maintenance deliveries reduced delays out for getting our adjust future to freighters. freighters these conversions as And out we’ve of significantly to where our aircraft got we’ll see of aircraft

We the took a in lot of quarter. pain

crews enough order board in able on get we fly schedule. to be stated, Ryan to summer the As

alone, flew X,XXX in we hours. sense, a X,XXX QX. July we In you give to flew Just hours

ramped We’re had. impact an only That’s cabin our valuable. members that cockpit which of it the of and have, that up we in able now we an profitability, is is number asset because we that to very crew very, but terms do

The force to And again. provide ice period in to we work, as asked have down of a the for Ryan few shut four said, now many next time. is airplanes as was program. months that It full-time full been as

looking We’re that have but so airplanes, this problem how all it’s that. can We to but a those can we work in, good eventually see other we we’ve much work do to have. got of provide to

QX, financial us in results of with what for with in control, look up largely QX we were in the at And future. the we believe terms the are line wanted adjustments. So very with out we we that, what impacts, which which very, when of the that our for feel sets we good accomplished

And allows platform we’ve do fully they the that, platform which they financial new that but clearly, built that leverage do, as spent dynamics of the and of say understood for profitability. to this, forward we all now the as we briefed investor, they and and to look revenue money our us

Ryan Goepel

the we us it leverage, of looking growth relates things in speaking as as finance how And side is QX, different QX point each difficult for kind sequential QX, of because us we And performing market different to one is one compare quarters to and QX. very from are it’s at a is as quarter to are relates from out cost. is – quarter, it is the as very of QX things of and need a to company and the different very QX

and adjustment look look at accurate most the to So, is to year-over-year.

do our aircraft base, only revenue we grew What which available similar grew but kind do pricing? of by we how So, do managed a customer cost XX%, is of grew XX%. QX last We hours by to similar by but we our is stream, we our we by XX%. revenue XX%, year, grew our versus similar block

is have means we we’re with more, is, this we but operating which better aircraft utilization. the So, what us is getting more using are aircraft, much

cost revenue a We’re without rate. bottom line our lower adding to increasing at our also

a us. is focus this key So for

things our more the this we types we detailed we’re and we’ll point to talked results, of need as when about much QX of have revenue. going everyone, I one remind out, And about two to be

to have $X,XXX and charter and basically and all-in be around We charter $X,XXX X times price, which ACMI tends Full to revenue, between hour. an ACMI an revenue revenue revenue. higher. fuel includes full is X.X

to charter will necessarily revenue but revenue So not the mix ACMI of ultimate the the impact number, margin.

about of revenue out It’s XX-Q. metric. one. hours metrics. disclosure more another QX and one the Block broken isn’t of significantly a have in our results, talk we’ll is couple But again, So in again, we’ll this that only

Ed Wegel

of we had previous about is that on, airplanes to number couple talked a as wanted dynamics the to why we in going here them. we as which have So what quarters, to we’re get we seeing the got of quickly

are that not are fixed as increasing You increasing we costs seeing revenue, variable the increase much. as costs,

than what to have. place more foundation operate currently So, the we’ve in airplanes got we

add we airplanes, the the cost cost on not side, variable as side. as on are costs so increasing And much our fixed

So, lower but XX%, costs we our that. can grow than much are revenue

the the seeing of network. we’re power well, As

aircraft around that pieces because got get puzzle to have, by more that can more will the you it means more fit is that you are So, originate. all country and that the of up you’ve likely you that can contracts positioned pick easier together it’s shorter and it that airplanes standing where nearby the flying the charter aircraft additional so have

airplanes, hours. we’re increasing what we’re as seeing, add block we So, the

because airplanes. the they’re the bit out we utilization more of better more have across a getting Caribbean. airplanes the spread or country And We’re across

airplane day city, one then go. where have client second to swoop can them they we airplane and take back next a and to a to take a the need to So,

the again, it’s So network. the power of

of to beyond number more contracts better and Additional increase the allow bid us in opportunity the aircraft all airplanes. us the utilization incremental just on aircraft allow of

Ryan Goepel

forward, these looking we the in So, what call, past. metrics, nonfinancial we are our released key, which KPI

added have just July reinforce point. to the of kind We

month at – the so grown days you look hours XXX%, adding has if means right, our look of fleet we’re growing our And more when block – hour What we’re average flying our often. the is – block has we’re that’s you but fleet, the reflected average at bottom that total around what per aircraft per month but we’ve grown XXX%. in So, per our flying grown aircraft. at also that number we’re

the which the of left. the drivers in big pool, we one is of talked that pilot Now bottom

is hour, kind the make of revenue out a flown is were and that which in flights is basis, kind indicator. to going QX, percentage number a of the on of for ACMI point the I’m an XXs. leading thing one per QX QX lower Now In

is the number XXs. to QX, in be For that going

hours, in will the going see dollar-for-dollar impact see have will a means to an but block – for profitability. increase the that you what it So, revenue you’re not is on

So, just that, just to sure again, for we – make we’ll people to numbers demonstrate – QX we want show, when the will I make dynamic. have but we that understand

pretty and every ACMI is the on And for and charter, charter. the and unique percentage then rates quarter ACMI of

So again, there is multiple dynamics.

much We’re are And I what’s job people But do more going so forward, job. better going can understand going a growing. to think we on. a it detailed explaining

we’re utilization the goal which our of and assets, the quickly, growing of We’re key getting company. is better

contracted. with So our forecast outlook $XXX for million, how revenue increase of We’re XXXX? currently into does translate looking over to of that XX% our

through We which growth have up period contracted over hours. XX,XXX XXXX numbers. add XX This significant contracted a XX,XXX XXXX, in million of X,XXX August potential the into date, hours to translates for to in outstanding December, for targets [indiscernible] identified to to with all compares hours total XXX hours another

indicators pilot fleet this leading is The and our our for count count.

And so on plan. this executing we’re

plan. with And as quoting to out, very year. We’re day pointed for $X next help we’re optimistic million this year a fill this and this over Ed

is year fleet aircraft, six target the into Our the few we’ll end delivery in specifically at aircraft and go XX-passenger size a cargo of and slides.

if Ed, add want I don’t know anything? you to

Ed Wegel

Yes.

to means out is which and or the deposit. that so So, we’re million contracted, out $XX contract, that another revenue million million Probably for quotes where we’ve currently $XX targets, we’ve million signed there. about identified $XXX at then $XXX got with another and

point. of quotes We closed at about XX% our this

million. aircraft from with have we’ve delivery target the new seen on raising we’re schedule aircraft getting other revenue delays that delivered, to comfortable but dependent built we on So, aircraft. dates we into our now that It’s comfortable $XXX with million, are based also $XXX in our the up

we’re comfortable million. with So, $XXX

We but is what will are $XXX we with point. guidance this that, at as providing comfortable probably million beat

And delivered. supply have airplane for This delivered it X that of it’s up configuration. a great delays a a continuous X-class AXXX. well the is Its It’s that our be it NCAA almost chain this we is of issues, should it’s is will in it XX for of be X-class – teams winter the the is configuration teams. VIP already make because next will but various airplane we to into its airplane certificate, booked That a fly, about time airplane. or support seats. an of ago. This excellent This period in VIP an configuration fully been Once on other with some a our example. on and this get months many another will converted airplane

way should the of again, airplane here and to be that configure the in the this going So, And certificate airplane it’s fall we’re because third week and on pretty August. this its by booked, solidly into and winter. economics the

delivery our is plan. Here

Our our plan current current plan. – target our now is

now largely target was Our plan on is contingent in which the financing, place.

so current our is this And plan.

aircraft passenger freighter during AXXX aircraft our nine us was and well That brings delivered quarter. second as Our to two the freighters. ninth that passenger delivered was as

And the will should Now – of we just plan, of in freighter in and have actually AXXX The the of we’ll This month be current the not this mix on picture a the We’ve freighter. a month, freighters the That third are passenger a then August. late that. year. airplane you of the take AXXX. aircraft end taking and in we certificate. aircraft through is QX that another passenger the showed by week X number

the So, just expect XX-passenger year. all aircraft end the be advance six put that’s financing have airplane and those to the of by airplanes we even been this of of made, bring capital we deposits on. that freighter to And in required in a Many the already of have we place.

in we the So deposits. the in bringing shape airplanes of terms we’re into fleet, these paid great

got the to have as standing airplanes we’ve the fleet. airplanes we pilots fly entire sure of XX and we a get We have enough make and fly that by these to to pilots the crew to pipeline

ramp are Our I currently up. sold. cargo fully to Those freighters, Two said, operation. as side in are continues

And and performance XXX XXX XXX, an average and against out and better airplane, performance freighters. economics an XXX pencils many aircraft. see competing freight both the those operating we hours We’re And per getting are freighters financial this and per than month, forwarders airplane this as in of the others aircraft. two operating of cases,

same about a fuel less XXX-XXX. much than Our And fuel carry had XXX. more burn. the a XX% We than is we burn

We we freight very pinch other forwarders, this that pitched So, that to don’t two the government, seven. airplanes. another we think airplane office we U.S. those performance other we, post tend this airplane. We’ve we have we with point, have characteristics four seven coming this present year. that as units got agencies, we’ve obviously and airlines, got feel sign well of the within But at cargo two, it of confident But to and because aircraft very allocated.

Miami Cuba, Literally, to is Caribbean Port of one to Caribbean. Lucia that, We’ve well taking flying assigned regularly Guyana. cargo to Spain, full to and got as slate Jamaica, cargo taking off. Our we’ve to to Eastern cargo business airplane got now to we’re to flights and Barbados, the cargo to Haiti Dominican as St. a of Republic,

the continue So, see this almost increase business the time three have next have number we we I for will assigned project would to Caribbean Caribbean operating that year. to will increase freighters I full that the time year. in will us. this by next

come Central out is into airplane to focus right-sized is U.S. us. a the America of This Central the America. for also

Miami our to four of Salvador, forwarders assigned airplanes cetera. Costa Honduras, et into next One freight of Rica, will fly El be out Guatemala,

So business. we good about feel that

Ascent airplane only been some busy, we of at two; because Our one to difficult those keep flights. partners it’s schedule will have

our we’ll that we to will flying start airplane, met to assigned Texas Ascent, be anticipate revenue with airplane move them. get we’ll that for based be targets And in to that the automotive airplane third and in The market. monthly flying

We're Colombian X. our in AOC. with Phase we America, are now Latin progressing

see late of Latin the in aircraft to and into assign to of fly by we in over them. next or get Number aircraft and America to finalized that at pilots, think U.S., point. growing. will U.S. we'll for three aircraft effectively But Latin be America one But that from will the pilot to any want pressure will lines business one XX our which a Latin that AOC. assigned that to that us that flying with the October, expect will airplane here business – XX for months. We foresee ease September AOC increase the That from airlines approached some of also to we about us capacity that spare provide issued an some airplanes can additional number those have And I

So airplanes, airplanes for first we five the seven are to and that. effectively, formulate our after plans allocation the next got we've for the starting

we're seeing is cargo So demand increasing.

for volumes cargo the outperforms freighters so than While into intra-regional remains our fair Latin competitors, of down and the of Caribbean are more airplane demands we this its of into wide-body because will any from America strong. the coming that. the the win and share Asia, And market

Ryan, could take this? you

Ryan Goepel

Sure.

So on every get Q&A daily. we pretty the question uplisting, I'd to it probably get much relates

shareholder But With not have no the the have go There way uplist the the conditions, hurdles generally, clear positive need we raise $X is capital. exchange and equity. financing, capital. And is on stock we're raise, option of share and is addressed. we price what pressing need best when raise the need of being to to you time We said, has kind the Axar there through two do to over performed, that to price are the capital determine reason it's real be uplisting on based that we we expense the That of an our is to right because performance. market share with and cover. a needs have financial to

are The positive investors, of I All talking the that we're to monitoring we if time institutional accomplish significant getting through shareholder a amount a raise, share. our Ed a being spending and comfortable time equity feel is doing investors, is we more are be could talking we generally addressed or $X and a it. comfortable said $X very which at story out.

be received. when well uplist, to the is right So will time

who – that are the their or shareholders, they shares sell work. of who don't existing you becomes uplist side or could you doesn't For it other wanting don't on need are to people buyers so want that you

value We're towards And thinking the understand working and exchange. through in so it, to getting on we different the are the long-term. that we

the have that our and A, right, we warrant the table or On updated B breaks financial Class the which common cap close, out post structure Class exists. the

$XX of outstanding $XX total have diluted we of shares million. million shares So fully and

with that, And think I finish. that's

Ed Wegel

Yes.

Axar it's cash and financial cash things think finance importantly use lines understand fuel, for sheet, does handling, maintenance. us on strength Ryan number for important. ground that of which that a the important of in allows and place puts with us, the for most But that put for balance to for to for credit better FBOs, his I financing is team

to up in grow. it everyone our lot our of And and a over instance, I airplanes think we and invest business. that's have talking shows after ETAP And capital supplied in the get our especially alliance So to airplanes we're to frees forth. to that providing about it got when Europe Hawaii partners for clients our stay certification competitors, very, capital very so and the or we important,

gives gives us room breathe. are lines execute this allows we us narrow-body So our stay, vendors, continue key to here to plan. will the financing confidence It our the with increase we to in our become to credit us grow everyone it to and and U.S. It preeminent that allows operator charter to the

on get built, quarter be is we've very, very for got to making up in to for again, needed aircraft future, payroll, trained the of year terms the we later the to successful So facility ready under get delivered that this LOI wrap pilots fly. setting us to just up a to feel our this maintenance us and that we sure the

us Axar So set future financing. up for this the great a along has with

quarter. successful a again, So

months over all are and here the July in We past we've moving six and that benefits of the forward. done August seeing

airline our confident in we very and the very very, good do become shape, and are about very, U.S. what our a we will and in to we future the charter best projections So are

questions. to any with we'll Grant, to back it and happy So answer that, turn you

Grant Howard

Ed you, and Ryan. Thank

already. And in screen, we'll so the that to questions. your participants, the just feature reminder bottom moment. please to a questions there's as And your at them a of some Q&A have in use submit to We a get

and already plans. A important interview and thing one Axar into when a after announcement, and addressed, about lot which your released the you it Axar it's stated. further was that little the of spoke what I builds discussion understandably been I flexibility was to thought recorded has you Ryan, in the future

going comfort XXXX have there's more introduces stated commitments that into and the around been XXXX? this for You management you much talked make the about the can certainty objectives so that that

Ryan Goepel

Yes. do need you day-to-day as a capital on capital And execute to to basis. in order ultimately, need you execute

growth this to capital that that so little are so doing and prior is fallback we pretty and were this with effectively to us. having significant. And our fuel no for brands And critical

Grant Howard

right. All

they're corner when report get the profitable Let's to from you'll same Roth, turn anticipate questions. you'll was about, here the effectively do and a There's a asking where couple and the you question, quarter? he when Chris

Ryan Goepel

QX.

Grant Howard

crew to significant training the Zambanini, do quarter-over-quarter? That was continues it a as be and hiring drag expect a to continue you direct. Jason cost as how long

Ed Wegel

cash going from seven the and our airplanes there's reduced. significant say, So that's percentage XX as we're a there's a airplanes, training significant from, represented profitability. be as airplanes, a XX significant and when you're hiring we drag move pilot four go going to in will are less on airplanes to drag by forward, much drag our that's or But of XX, you that future two costs the total from to

So overall the less. percentage that as of steady get with number will or airplanes, that represents our cost in of increase move we significantly overall the forward, a revenues

Grant Howard

For of have aggressively? price talking to think the I Karl about Brewer he's guess, the you room new Do may plan believe class, more almost be booked already, executive an I XX% freighter, fully quotes. with it or your you acceptance

Ed Wegel

And Yes. are. we

Grant Howard

Lee. Jeff

to in the refer press four QX. you freighters Your that those of intent mentioned LOIs, QX Can total? both freighters for two AXXX are and and release letters confirm in different

Ed Wegel

can. I Yes,

we'll top – XXXX. the QX LOI of will on be is QX in for two. freighters announce other that this And that two delivered LOIs for and aircraft of Other year will be So we delivered the signed

Grant Howard

is believe was what customs [indiscernible] and asking, immigration correct ICE? That's I on? now in U.S.; the I'm Hill Randy from

Ed Wegel

Right.

countries one in So minimum ICE back U.S. and America of Central operating XX, which South is enforcement at U.S. move our as many the home and people agency XX the America. integration to a and airplanes many to from as has time their as customs as any across also

airplanes into So And those as year that programs before, as four that in number been later and we're of up, this as a that airplanes the provide, program. in I program. many seeing they need great ramping we've asked are said increase to

program. We're to right six flying under trips flying into we're five Central a America week that well, As now.

Grant Howard

I the a investors are you is you those NASDAQ you a with And think of right, some of perhaps nature little degree more and timing lot you it look Question listing. discussions there here. institutional of type the that as down reception the have road pertains receiving? to mentioned been a discussions that to provide When around can clarity the

Ryan Goepel

process can too or if XX of not talked we're fundraise participate, a investors. they of institutional the them, is are they the it a – and Goldilocks kind their don't on we probably fund deals, XX through Many the problem, we funds, to have why but radars. that are say assets to did of So all different last equity lot of It's you over small. or did credit a lot

going investor last think I I conducted between and and conferences. we volume. in four one-on-ones I quarter, participated to conducted Ed in different we're the XX Earlier continue that

will other a would what then radar, your of on invest. cycle and put and decide buy than they're a and you buy to some they'll quarters, the And if more cycle maybe they'll longer diligent or two They much there. for much have they'll out is institutional investors going you of expect three lot from the results do watch

our ultimately pump is biggest to I the work like which planned transparent. to the these think are have we to said to going ready we'll is value as uplisting I actually the going record gives through a execution an of we do you we hopefully and roadshow think to investors, of to that institutional targets so try And off. pay and hit, be it, we've that, to try hit We receptive we're Ultimately, exposure the when it, with to audience. goes that we track

Grant Howard

Thank for it QX. and from Roth you answer on the Chris stated profitability, you was direct the

folks Helane Colin out and is that currently airline GlobalX. we've Helane a three questions and Now reminder transportation analyst in from with an to to listening as adviser And Becker. who is are just got of New York

start first I'll with question. your So

crews fly in Haiti elsewhere the ensure the you out and Do crews? Haiti of safety the the not, and do how markets? and risky If of same with in you aircraft

Ed Wegel

security done freighter. day flying We're total Haiti, of and going starting we're once And to Port-au-Prince next safety flying anticipate the we and assessment to there. a to we've with a day start to Cap-Haitien. there a month, fly So now and once

on security and with that fly for all all There of the American and are plan event the there to the protocols have the safety in programs JetBlue, have aircraft. But and airport us stay do to crews support there of we stay reason, JetBlue, three if Their a that. other into piggyback going Spirit, the and the at us protocols off Spirit chance the we to, requires of any worked on to to of their to and ensure ground Haiti. overnight will have that won't situation each when – off we we all overnight. occurs we're that

a the if our a to we've situation got arises. us to get as done airport hotel back as So for put that programs well us that for next and We've consultants full morning people security place in assessment. come do in the to and

other so international of JetBlue support airlines day. will day in times that that. part there be American and share So all the out out like Spirit It of Again, a of there's we're traffic of place. very in flights community just international long. and situations well, are that several programs as Miami comfortable with difficult in each that

Grant Howard

Are Global equipment you? do think question. pick opportunities up How bankruptcy to either second or the business? Western will affect Helane's there of you

Ed Wegel

the So that aircraft Global we obviously which is a freighters – MD-XX XXXs wide-body fly. Western operates and very dissimilar to AXXX freighters,

S. has Europe to impacted to and business from the with severely the their package U.S. So coming been business Asia the U

seen because and in so the seen that of we operate volume level the of particularly don't We those that. in in in, the not Caribbean. of markets Express fly block the hours market, the they've operate into of of significantly reduction so markets have they number the automotive, volumes that cargo And we reduced that narrowbody business

that And we and to Kingston a been into Haiti lot has a business and Cuba DHL into contracted what into fly is of us.

bankruptcy got that really volumes not again. in we're assume equipment. other that prepackaged will leaner, their Western survive like to them and through, will Asia out cargo put to the essentially up a interested I much a until come they side. lower from cost Western they Global's So Global operation would be allow It any looks they'll pick

way. not up and doesn't it so flying impact in any see just impact us. we really can don't because bankrupt, to we not they're It's size, equipment So we like a pick what that they're they're flights any really do different

Grant Howard

best and for and how in our asking GlobalX or Stifel to those And short, the ICE that relates the can she's third humane of you're transportation or ensure people question treatment flying? what

Ed Wegel

– lot protocols we So with we have have that a fly a place for of both we in number agencies. and of

and fly human border for and We customs and for services. fly we So fly we for patrol. health ICE, HHS,

So essentially the much on airplane. do we don't

agencies. emergency. are by are of on by one placed guards those passengers airplane case attendants the The flight are of in monitored there board Our that an

But seen of the in have they're our especially treatment passengers. members, seen inhumane and threats flying, not any to have made been some that we not time And of trained the We at to deported mistreatment including do that haven't contain because or There being criminal any the in are deal we've been who we've those. activity crew all. flight we U.S. with any of seen passengers run

be work there so had in of may that, around more or guards security never or involved incident we problem flights. a have And those any an but

Grant Howard

have severe recession do that? a a recession soft not any about or landing But the you deal variety will mild here you recession, place? in any contingency should plans There's how recession, with global and be whether recession, it. be would Question or whatsoever. of will there Or there how a handle a opinions, a

Ed Wegel

So some of a then color. Ryan things, couple let and also I'll provide

will operations or normal. as their of moving those recession San programs. of size Cuba, to in friends clients as fly VFR and relatives of there's to be charter not where because possible. Slide visiting traffic NCAA the improved Haiti, government we're flights the recession we the When X, in X a teams look Division at and whether list built FLY, this that recession at continue agencies, a as airline The the We've you U.S. Domingo

calculate as requirements. clients airlift we'll XX% to much for And us, so current proof. business our continue those will need to And that come and effectively their to we is as recession continue that of

forecast you not some a is landing. Grant, very will say, are some really analysts soft So severe as saying it recession be

have to is And charters may summer. where that the Some we in we're saying our entire we if fleet to in number this there able Europe be being over in for we to Europe over on What right this we to moved fly Europe the the do now, avoid have charter could any – seeing are capability degradation than it not had so, requested number or people particularly are completely. who arguably of summer. traveling are airlines flights seeing the worse We're shape U.S. of economic could

leading that's again proof. vast a traffic we our that but the hold, if think business is will recession majority So indicator, the of

Grant Howard

you so in And now, update the seven use I that the I'm final on so asking freighter one for an presentation, we have here AXXX correct but freighters. far, plans, could the right believe

So demand capacity obviously, there's a handle. have than you there, lot growing currently to more of demand

to know provide additional want don't if that? any comments you I So on

Ed Wegel

Yes.

markets. freighter the wide-body two are different and narrow-body the markets again, So

wait added with start on And freighter the out demand the come can't So passenger to we want our wide-bodies. even something set would good markets America because much now. very well of its the cargo and think an freighter, And we competitor we long-haul we volumes freighter. Latin until get to a want The competes seeing could there that not we're aircraft. would it I need AXXX for we up into add certificate, we the with of frankly, to is back the but the against Central into before additional our America, aircraft AXXX because because airplane U.S. if for AXXX lift an AXXXs Caribbean get

AXXX process, that some a – clients can our of start and low-risk those. lot And We aircraft. all XXX. project because modifying a getting to have with putting already full side together certification off approval that and our for of passenger It's an we to with programs start is manuals, before received exercise a on resources. to some do Board training gotten internal certification the money which demand we've And very do the spend and of or improve with interest a the we of FAA number process can any we

certification. before to the prep now on being we back work a move the by but sometime in come lot So real to to done flying is that of that the that's to with XXX to them add for again I we a have execute next summer. something start think We'll we AXXX any year, green light spending will on our begin money that, forward certificate, next have a to Board hope with

get in not you little Again, the cargo PPE. levels freighter. – their give And to packages bit markets to the a an we're flying are impossible also Asia back a we freighters, with one, just sense, the and it's until more mass off even rebound the and in mean, cargo to wide-bodies to I XXXX were when and all get they back sorts between well, They're levels. AXXX XXXX long-haul I that of to U.S. that back levels could if want push think comfortable we to

as programs once passenger can. do we'll forward full and XXX move as for those both do airline; and So freighter that the radar will passenger got that the it's we easier have we approval We've on us for first. to into demand quickly Board

Grant Howard

A indicated adding stock the portfolio? investors in, global asked, global to to Have institutional to from a couple just would what standpoint needs market; before their of the profitability consider Kaiser do they both related questions came

Ryan Goepel

that. investors tell start it I'll Not you they buying. interest. when They'll know guess we've express I don't done specifically, institutional

Grant Howard

the And way institutional share only to that is the $X agree price second was, the get investors. part do to you attract to

Ryan Goepel

No, think don't no, so. I

a important retail play think very I investors role.

retail following. heavy institutional Retail good We as have investor a as money. heavily is money investors'

a is webinars a be possible. transparent disservice as why news be Grant, we we kind retail keep This to informed you sure try didn't I have as out and all – press XX,XXX, much. focus think investor, on – lot investor and the the we why so so retail send we that's And We make would is do issue them releases well this. I of on our that's letter. it our as so in to to like think of

And and because but think to you are. of I at through only It's be is we the and need institutional's XX kind so the get looking need do we path to think retail both don't no, X,XXX volume, easier somewhat institutional. I same to

Ed Wegel

more a color bit little that. And I think on – so

world. Ryan to probably, was million mentioned, a private right, deal. a from different what equity raising the Their $XX So can investors, this institutional you funds, where as major think to XX OR airline charter I focus and talked platform – of investors it add Axar, other in financing a institutional through was we become our process became alluded have do airplanes force scalable do you the

focus and employee base you can of your reasonable rates to on. long-term, of what that leverage you network, could scale and on. power a Now not focused levels. What pilots institutional you become these of investors that airplanes do – of that this make hiring the can did your fleet, the your profit at operations couple focus sustainably looking a at they're power that the platform quarter profitable not have dollars have your by power It's grow and so got they not adding on so the skinning a what down over can that's at you is

XX that. away we who many those not capital. to don't They can selling believe to in our I business. in don't experienced business. And They we and from terms $X.XX understand our the gotten They're want – $XX shares, with need in they're ways investors. to They they're stock, have business, retail our investors airplanes understand of move could because of understand by that million unrealistic our get XXX

yes, that will what have can investors. do retail need and we do for because you platform do a institutional We be who scale So profitable? understand investors need institutional look investors sustainably

level up scale at we where are as we get profitable. a you can can in And sustainably drive that and

but but hunker have quarter, down we of and airplane, So the delivery not through to been delayed every have would the cut of schedule. fly have have hiring, off native we And every the in end the able yes. profit, we December all we but second pilot July

to We get under and up that train need now grow hire clients to And have to. will been we those to to have contract. point, the we from where airplanes seven pilots not still some we to at able would have grow

you investors do take done. so later? execute is the is you that sustainably wants to the now the have and do you and do pain profitable; take Institutional So now future your plan we pain that what

Grant Howard

January, directed the that and retail investors and all GlobalX retail retail. was that push of their and online at with out support. volumes, and assistance almost was at this And of March February, look volumes, first just an year, at at a of through stock also the the if as look additional go there and then global of on was year, note they was look aggressive pretty that, people quarter lot tremendous office this a with came you this charts there It coordinated

there. out is assets, take of it run $X was in than a a going and they microcap So out [indiscernible] reading a to liberty have do just more Toronto, I'm they report billion here. I fund. but from

lines, are lackluster TSX continuing ever world as evidenced just just by conditions couple the bad a of So is witnessed. of the microcap read performance Venture in the we've as

as and on We draw other newsletter it more saying a and are so low being writers. isn't just can we that a more on on they group, that but they saying lot are goes that simply now, but priced there imagine but and are not we can't downside, much

done a years, that seeing, and the now context of almost we're conditions you've XX absolutely our right everything junior So what face I hell here. in can are think has GlobalX in to of horrific had say I job markets a in the

gentlemen, comments? that with congratulations. So closing Any

Ed Wegel

I that's Grant. No, think right,

of a days in to shareholders to They Ryan our week another Air planes follow – I we exchange day-one. make They right. and uplisting putting ours. frustrating airline, merged are believe our a It's obviously, are single this to, a seven shareholder, not with of with made is Moving our we price largest twice to to a we're XX-hour every that's profit need mature six closely. Mobility days, the two something I that interests have very company. seven with planes. since and aligned Surf do. the see count And – market engine stock they work. haven't We're

but carry long-term, have twice cap the is for planes predicted eight that losses have ours, seven can they – their passengers. that And single-engine market

again, Let carry market cap ours. passengers; me double that say can eight that and planes seven single their engine is

can. But that XXX We shares So institutional much if to as the drop sell happen $X.XX, and see we talk it's and investors time. frustrating. wants all to as sit we us someone

we talk support it. want other get no Hopefully, to each why will from than down, stock the keep investors knocking the apparent we So right, do [indiscernible] institutions. retail reason, other to do because for can we price

people So we understand and investors, change to our and profitable, making that are need need to curve growing need are to mix be we of sustainably to exchange. We this business well a to get we that mature along the the we happen. to

Grant Howard

lead QX of quite we will participants, and Thank our announcements you forward Again, we are be thank you. to to to look anticipate thank all results. that and going into wonderful you, the what

Ed Wegel

Thanks, Thanks, Great. everyone. Grant.

Operator

bye. Good

Global Crossing Airlines (JETMF) 9 Aug 232023 Q2 Earnings call transcript