Global Crossing Airlines Reports Record Q1 Revenue and Growth

Global Crossing Airlines Inc ((TSE:JET)) has held its Q1 earnings call. Read on for the main highlights of the call.

Global Crossing Airlines Inc. recently held an earnings call that highlighted a strong financial performance, marked by significant revenue growth and improved profitability. The expansion of the ACMI business was a key driver of this success, although challenges persist in the charter and cargo markets, alongside rising operating expenses. Despite these hurdles, the company maintains an optimistic outlook, with plans for further fleet expansion and strategic growth, reflecting a generally positive sentiment.

Record Revenue Growth

Global Crossing Airlines reported a record revenue of $66.6 million in the first quarter of 2025, marking a 24% increase compared to the previous year. This impressive growth underscores the company’s robust financial health and its ability to capitalize on market opportunities.

ACMI Business Expansion

The ACMI (Aircraft, Crew, Maintenance, and Insurance) business experienced remarkable growth, increasing by 84% to $34.3 million. This segment now accounts for 52% of the company’s total revenue, up from 35% the previous year, highlighting its strategic importance and contribution to the company’s overall success.

Improved Profitability

The company achieved a net income of $0.2 million, a significant turnaround from a loss of $6.4 million in the previous year. Additionally, EBITDA improved to $5.4 million from a loss of $3.5 million, showcasing the company’s enhanced profitability and operational efficiency.

Fleet Expansion

Global Crossing Airlines expanded its fleet to a total of 19 aircraft and plans to increase its fleet by more than 20% in the second half of 2025. This expansion is a strategic move to support the company’s growth ambitions and enhance its market presence.

Sports Charter Program Growth

The sports charter program demonstrated significant growth by transporting twice as many college teams for the 2025 basketball season. This expansion reflects the company’s ability to tap into niche markets and diversify its revenue streams.

Charter Revenue Decline

Charter revenue declined by 10% to $30.5 million, down from $34 million in the prior year period. This decrease reflects a strategic shift towards the more profitable ACMI business, as the company reallocates resources to maximize returns.

Ongoing Cargo Market Challenges

The cargo market continues to face challenges, operating in the trough of the freight cycle. The company has not added new capacity unless for long-term contracted work, indicating a cautious approach in this volatile segment.

Increased Operating Expenses

Operating expenses rose to $63.5 million from $58.5 million, driven by higher aircraft rent, maintenance, and personnel costs. This increase highlights the financial pressures the company faces as it scales its operations.

Reduced Cash Position

The cash and restricted cash position decreased to approximately $10.2 million from $14 million at the end of the previous year. This reduction underscores the need for careful cash management as the company navigates its growth trajectory.

Forward-Looking Guidance

Looking ahead, Global Crossing Airlines projects continued growth, with plans to expand its fleet by over 20% in the latter half of 2025. The company aims to capitalize on the growing ACMI market, with block hours and revenue per block hour expected to increase. Despite challenges in the charter and cargo sectors, the company remains focused on strategic growth and operational efficiency.

In conclusion, Global Crossing Airlines’ earnings call reflects a generally positive sentiment, driven by record revenue growth and improved profitability. While challenges persist in certain segments, the company’s strategic focus on expanding its ACMI business and fleet positions it well for future success. Investors and stakeholders can look forward to continued growth and operational improvements in the coming quarters.