Global Crossing Airlines Group Inc.
For the period ended Mar 31, 2025. Filed May 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000950170-24-122964
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0000950170-25-066553
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 68 current paragraphs.
32 unchanged; 28 reworded; 7 added; 27 removed; 6 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Took delivery of one A321 passenger aircraft.
Current report
Continued the slowdown of hiring new crew, right sizing for 20 aircraft and focusing on the Cargo business with the start on DHL at the beginning of the second quarter. In total, we increased our pilot headcount from 140 to 146.
Current report
Aircraft fuel decreased by $0.8 million, from $8.2 million to $7.4 million, or 9.7%. The volume of Charter and Non-Revenue block hours decreased by 10.2% or $0.8 million, while base jet fuel remained flat.
Current report
Depreciation and amortization increased $1.1 million, from $1.2 million to $2.2 million or 92.8%, primarily driven by aircraft deliveries secured on capital leases.
Current report
Travel decreased $1.3 million, from $4.3 million to $3.0 million or 31.0%. Throughout the year we expanded local hiring in key bases that support our government agency business and the reliance on travel dropped and is a cost that will be a continued focus in 2025.
Current report
Interest expense increased $0.8 million from $1.8 million to $2.6 million driven by the increase of aircraft on capital lease from 1.0 to 3.7 equivalent aircraft.
Removed paragraphs (27)
Previous report
Department of Transportation granted us economic authority to operate 20 aircraft, an increase from 16
Previous report
Took delivery of two A320 passenger aircraft and one A321F.
Previous report
Slightly increase pilot headcount from 134 to 136.
Previous report
Operated our first flight for the Department of Defense, a key customer representing an important milestone for GlobalX.
Previous report
Due to increasingly high demand in 2024, GlobalX also contracted over 1,200 block hours on other carriers to fulfill our customers’ missions.
Previous report
Q3 saw a significant shift in the mix of our business from Charter to ACMI. Charter revenue for the period decreased $6.8 million or 31.3%, from $21.8 million in 2023 to $15.0 million in 2024. Charter block hours decreased 44.4% from 2,256 to 1,254 resulting in a $9.7 million reduction which was primarily offset by the rate for Charter flying which increased 23.6% from $9,672 per block hour to $11,951 per block hour resulting in a $2.9 million impact. The increase in the rate per block hour is primarily driven by high market demand and a shortage of supply as competitors reduced capacity to increase demand, higher fuel and handling fees and the mix of flying. The decrease in charter block hours was due to the increase in the number of aircraft in the ACMI segment.
Previous report
ACMI revenue for the period increased by $17.7 million or 92.9% from $19.1 million in 2023 to $36.8 million in 2024. This variance is primarily driven by a 40.7% increase in the number of available aircraft and the movement of aircraft from the Charter segment which resulted in an increase from 4,615 block hours in 2023 to 6,571 block hours in 2024, an increase of 42.4% or 1,956 block hours. This volume accounted for 45.8% or $8.1 million of the revenue increase. The average revenue per block hour increased $1,468 per block hour from $4,139 per block hour in 2023 to $5,607 per block hour in 2024 and accounted for $9.6 million or 54.2% of the revenue increase. The primary driver for the increase was related to both high market demand and a shortage of supply as competitors reduce capacity.
Previous report
Aircraft fuel decreased by $1.6 million, from $5.7 million to $4.1 million, or 28.5%, primarily due to the volume of non-ACMI block hours which decreased 34.0% or $2.0 million. This was partially offset by an increase in fuel prices by 5.4%.
Previous report
Depreciation and amortization increased $1.3 million, from $0.6 million to $1.9 million or 229.7%, driven by assets acquired to support our airport operations. These assets include, but are not limited to, aircraft deliveries secured on capital leases, computers, software, and rotable inventory.
Previous report
Contracted ground and aviation services decreased by $1.4 million from $4.7 million to $3.3 million, or 30.1%. These costs are directly correlated to the number of Charter hours operated. A $2.7 million reduction was primarily driven by the decrease in charter block hours by 56.6%. This was offset by $1.2 million primarily due to an increase in rate by 61.0%.
Previous report
Travel increased by $0.6 million, from $1.6 million to $2.2 million or 42.6%. This increase was driven by increased activity at newly created bases to support new customers resulting in additional hotel, flight and meal costs.
Previous report
Operating losswas greatly impacted by a series of unplanned maintenance events in September that effectively took almost 35% of the passenger fleet offline for almost two weeks. This included a severe weather event damaging two parked aircraft, multiple bird strikes across three different aircraft and a third-party vendor who severely damaged an aircraft during a routine check. A number of these are insurable events, but the impact to revenue was significant and the estimated impact to operating loss is over $5M. In addition, our Cargo segment continued to underperform which also served as a multimillion dollar drag to earnings in Q3. Specifically, operating loss increased $0.2 million, from an operating loss of $2.3 million to an operating loss in 2023 of $2.5 million. We were able to minimize the impacts of the events in September by our ability to secure higher rates for both ACMI and Charter contracts. The Company’s ACMI rate grew 35.4%, from $4,139 per block hour to $5,607 per block hour, while Charter rate per block hour is up 23.6% from 9,672 per block hour to $11,951 per block hour. The second factor is scale. As an example, when measured on a per block hour basis, Salaries, wages, and benefits dropped from $2,183 to $2,158 per block hour, a 1.1% reduction. There were also savings on a per block hour basis on fuel, and contracted ground and aviation services.
Previous report
Interest expense, netdecreased $0.2 million from $2.6 million to $2.4 million driven mainly by the restructuring of debt in Q3 of 2023.
Previous report
Net Income/Loss
Previous report
Net Loss remained unchanged at $4.9 million comparing the three months ended September 30, 2024 and 2023, despite the additional events noted above during the current period.
Previous report
Nine months ended September 30, 2024 and 2023
Previous report
Other revenue for the period decreased by $1.1 million from $3.9 million in 2023 to $2.8 million in 2024. The decrease is primarily driven by less ancillary services provided to our customers.
Previous report
Operating Expenses
Previous report
Salaries, wages, and benefits increased $12.7 million from $38.3 million to $50.9 million, or 33.1%, primarily due to the hiring and training of pilots and other airline personnel necessitated by the growing fleet and operations. The total employees grew 15.0% from 585 to 688 and pilots increased from 121 to 143, or 18.2%. A block hour increase of 52.2% drove a $19.3 million increase, offset by $6.6 million due to a reduction in rate per block hour of 11.5%.
Previous report
Aircraft fuel decreased by 9.5% by $1.9 million, the volume of non-ACMI block hours decreased by 16.2% or $3.2 million. This was offset by an increase in base jet fuel of approximately 8.0% or $1.3 million.
Previous report
Maintenance, materials, and repairs increased by $2.7 million, from $6.3 million to $9.0 million, or 43.1%. An increase of $0.6 million was due to a severe weather event that damaged two parked aircraft, multiple bird strikes across several aircraft and damage caused by a third-party vendor, which was offset by a $0.2 million decrease primarily due to decreased ad hoc work in spite of the increase in both the number of aircraft and the number of block hours flown which increased 954 or 15% from 6,506 to 7,460 block hours. Another $2.3 million cost increase was primarily due to volume from the increase in both the number of aircraft to 18 and the number of block hours flown which increased 45.5% from 13,235 to 19,252 block hours. This was offset by $0.2 million due to the rate per block hour improvement of 1.6% from $477 per block hour to $469 per block hour.
Previous report
Depreciation and amortization increased $3.0 million, from $1.5 million to $4.5 million or 208.3%, driven by assets acquired to support our airport operations. These assets include, but are not limited to, aircraft deliveries secured on capital leases, computers, software, and rotable inventory.
Previous report
Travel increased $4.0 million, from $5.2 million to $9.2 million or 78.2%, $2.3 million was driven by the 45.5% increase in block hours. The remaining $1.7 million variance is driven rate increase by 22.5%, caused by higher flying at outstations, thus raising hotel and meal cost for crews on missions.
Previous report
Insurance increased $1.2 million, from $3.6 million to $4.8 million or 34.2%, primarily related to the increase in the number of aircraft.
Previous report
Non-operating Expenses
Previous report
Interest expense, netincreased $2.6 million from $3.8 million to $6.4 million driven mainly by the interest payable on the debentures issued in 2023.
Reworded paragraphs (28)
Previous wording
GlobalX operates a US Part 121 domestic flag and supplemental airline using the Airbus A320 family of aircraft, operating both passenger and cargo aircraft. GlobalX’s business model is to (1) provide services on an ACMI using wet lease contracts to airlines and non-airlines, and (2) on a Charter basis whereby we provide passenger aircraft charter services to customers by charging an “all-in” fee that includes fuel, insurance, landing fees, navigation fees and most other operational fees and costs. GlobalX operates in the United States, Europe, Canada, Central and South America.
Current wording
GlobalX operates a US Part 121 domestic flag and supplemental airline using the Airbus A320 family of aircraft, operating both passenger and cargo aircraft. GlobalX’s business model is to (1) provide services on an ACMI using wet lease contracts to airlines and non-airlines, and (2) on a Charter basis whereby we provide passenger aircraft charter services to customers by charging an “all-in” fee that includes fuel, insurance, landing fees, navigation fees and most other operational fees and costs. GlobalX operates within the United States, Europe, Canada, Central and South America.
Previous wording
During the nine months period ended September 30, 2024, the Company refocused the business back to GlobalX’s core competency – operating narrow body charter flights for both passengers and cargo. This led to the cancellation of several initiatives and the prioritization of adding aircraft to our operating certificate. Projects cancelled, include UrbanX, GlobalX Colombia, GlobalX Ecuador, adding ETOP’s capability, the acquisition of a wide body A330 aircraft and the development of a hangar facility at Fort Lauderdale Airport. Not only does the cancellation of these projects represent significant cash savings in 2024, but it also allows the team to devote efforts towards our stated goal: creating the largest narrow body charter operation in North America generating sustainable, long-term profits. To achieve this goal, GlobalX continues to invest in its three key assets–certifications, aircraft, and crew.
Current wording
During the three months period ended March 31, 2025, the team devoted efforts towards our stated goal of creating the largest narrow body charter operation in North America generating sustainable, long-term profits. To achieve this goal, GlobalX continues to invest in its three key assets–certifications, aircraft, and crew.
Previous wording
GlobalX achieved the following during the nine months period ended September 30, 2024:
Current wording
GlobalX achieved the following during the three months period ended March 31, 2025:
Previous wording
Completed five heavy maintenance events and 12 non-heavy maintenance events.
Current wording
Completed three heavy maintenance events and nine non-heavy maintenance events.
Previous wording
Hired and trained over 70 people in dispatch, crew scheduling, operation control center and maintenance, people required to operate the volume of flights anticipated over the remainder of 2024.
Current wording
Hired and trained 9 people in dispatch, crew scheduling, operation control center and maintenance, people required to operate the volume of flights anticipated over the remainder of 2025.
Previous wording
GlobalX believes in the longer term viability of the A321F (passenger to freighter) cargo aircraft. During Q1 2024, we had two aircraft offline, one for maintenance and, one for conformity. This left two operational aircraft, both of which generated lower than anticipated revenue. GlobalX attributed the softness of the market to several external factors including the rebid of the USPS contract, general economic conditions, and excess capacity in the North American freight market. In response to this slowdown during the quarter, the Company cancelled two aircraft deliveries, elected to take two A321’s as passenger rather than freighter and deferred two other cargo deliveries to 2025. GlobalX is working diligently to place the aircraft we have into long term ACMI contracts and continues to make progress establishing our reputation for on-time performance as the market better understands the capabilities of the A321F aircraft. While the Company cannot predict when the cargo market will recover, GlobalX has taken concrete steps to reduce our financial exposure in 2024 while expanding our customer base for the aircraft the Company does have.
Current wording
GlobalX added the A321F (passenger to freighter) aircraft to its operating certificate during Q1 2023. The Company continues to believe that the A321F will be a highly sought after cargo aircraft over the next few years. During Q1 2025, we had four cargo aircraft operating. GlobalX has seen over a 200% increase in volume vs. Q1 2024 attributed two long-term contracts entered into during 2024. The market continues to be soft due to, general economic conditions and excess capacity in the North American freight market. In response to this continued slowdown during the quarter, the Company continues to make progress establishing our reputation for on time performance as the market better understands the capabilities of the A321F aircraft. While the Company cannot predict when the cargo market will recover, GlobalX has taken concrete steps to reduce our financial exposure in 2025 while expanding our customer base for the aircraft the Company does have.
Previous wording
The passenger market continues to experience surging demand resulting in improved aircraft utilization and improved operating income. There are several factors, including the supply of aircraft, reduced direct competition, increased reliance on air charter by colleges and increased customer demand driving increased demand for our services. GlobalX anticipates the high level of demand will continue well into 2025. To address this demand, the Company has prioritized passenger aircraft deliveries over cargo, devoted sales and operational resources to develop long term relationships with key customers and to expand the markets served as opportunities arise. Passenger charter services will be the economic engine for GlobalX in 2024.
Current wording
Unlike the cargo market, the passenger market continues to demonstrate strong demand. There are several macro factors, including the supply of aircraft, reduced direct competition, increased reliance on air charter by colleges and a general increased customer demand, driving increased demand for our services. GlobalX anticipates the high level of demand will continue through the summer and well into 2026. To address this demand, the Company has prioritized passenger aircraft deliveries over cargo, devoted sales and operational resources to develop long-term relationships with key customers and to expand the markets served as opportunities arise. Passenger charter services will be the economic engine for GlobalX in 2025.
Previous wording
Heavy maintenance checks are expected to continue to be outsourced to FAA-approved service providers. The 6Y and 12Y checks will be primarily paid for using funds from the accrued maintenance reserves paid to lessors under operating leases.
Current wording
Heavy maintenance checks are expected to be outsourced to FAA-approved service providers. The 6Y and 12Y checks will be primarily paid for using funds from the accrued maintenance reserves paid to lessors under operating leases.
Previous wording
There have been significant changes to the competitive environment for US Charter operators in recent months. The liquidation of iAero (our largest competitor), the acquisition of Hillwood Airways by Eastern Airlines, the acquisition of iAero Assets by Eastern Airlines and Breeze Airways renewed focus on charter operations have all had a large impact on the charter market. It is our management's expectation that Eastern Airlines, with the assets acquired from iAero, will look to expand their business domestically. In response we are focusing on our core business, emphasizing on time performance, reinforcing our differentiation of our Airbus product and actively soliciting longer-term contracts with key customers.
Current wording
The US Charter market continues to evolve as several airlines provide charter aircraft. Specifically, Eastern Airlines Express, Breeze Airways and Avelo continue to dedicate aircraft to charter operations, having an impact on the charter market. It is our expectation that Eastern Airlines Express will continue to add aircraft to expand their business domestically and in the Caribbean. In response we are focusing on our core business, emphasizing on time performance, reinforcing our differentiation of our Airbus product and actively soliciting longer-term contracts with key customers.
Previous wording
Our management team has extensive operating and leadership experience in the airfreight, airline, and aircraft leasing, maintenance, and management industries at companies such as JetBlue Airways, Virgin America, American Airlines, US Airways, Atlas Air, Breeze Airways, Miami Air, Spirit Airlines, Continental Airlines, Pan Am, and Flair Airlines, as well as the United States Army, and Air Force.
Current wording
Our management team has extensive operating and leadership experience in the airfreight, airline, and aircraft leasing, maintenance, and management industries at companies such as JetBlue Airways, Virgin America, American Airlines, US Airways, Atlas Air, Breeze Airways, DHL, Emirates, North American Airlines, Miami Air, Spirit Airlines, Continental Airlines, Pan Am, and Flair Airlines, as well as the United States Army, and Air Force. In addition, our management team has a diversity of experience from other industries at companies such as KBR, Teladoc, Halliburton, Lehman Brothers, and the Burger King Corporation.
Previous wording
The analysis of GlobalX results for the three and nine-month periods ended on September 30, 2024 and 2023 requires an understanding of how the Company fundamentally evolved during that time period. 2023 was only our second year of full operations and was a period where the company was focused on securing new customers, entering new markets, and flying to new locations; primarily in the domestic and Caribbean markets.
Current wording
The analysis of GlobalX results for the three months period ended on March 31, 2025 and 2024 requires an understanding of how the Company fundamentally evolved during that time period. 2024 was our third year of full operations and was a period where the company was focused on securing new customers, entering new markets, and flying to new locations; primarily in the domestic and Caribbean markets.
Previous wording
By contrast in 2024, GlobalX is expanding on our existing relationships both domestically and internationally and grew operations in the ACMI market through increased focus on operating for government agencies. As the company grows, operational efficiency and margins are continuing to improve. Our key metric is block hours flown and block hours flown per available aircraft, which is the measure by which the Company tracks commercial activity. While other airlines discuss available seat miles and revenue per available seat mile (“rasm”), cost per available seat mile (“casm”), these metrics are not germane to our business model as an ACMI and Charter operator. GlobalX charters the entire aircraft, does not take fuel risk, and does not take third party risk therefore all results are evaluated on a block hour basis.
Current wording
In 2025, GlobalX is expanding on our existing relationships both domestically and internationally and grew operations in the ACMI market through increased focus on operating for government agencies. As the company grows, operational efficiency and margins are continuing to improve. Our key metric is block hours flown and block hours flown per available aircraft, which is the measure by which the Company tracks commercial activity. While other airlines discuss available seat miles and revenue per available seat mile (“rasm”), cost per available seat mile (“casm”), these metrics are not germane to our business model as an ACMI and Charter operator. GlobalX charters the entire aircraft, does not take fuel risk, and does not take third party risk therefore all results are evaluated on a block hour basis.
Previous wording
Charter revenue for the period decreased $0.1 million or 0.2%, from $73.7 million in 2023 to $73.6 million in 2024. The rate for Charter flying increased 15.7% from $11,084 per block hour to $12,821 per block hour resulting in a $10.0 million increase. This was offset by a $10.1 million reduction due to charter block hours decreasing 13.7% from 6,652 to 5,742 block hours. The increase in the rate per block hour is primarily driven by high market demand and a shortage of supply as competitors reduced capacity to increase demand, higher fuel and handling fees and the mix of flying. The decrease in charter block hours was due to the increase in the number of aircraft in the ACMI segment.
Current wording
Charter revenue for the period decreased $3.5 million or 10.3%, from $34.0 million in 2024 to $30.5 million in 2025. The rate for Charter flying increased 7.1% from $12,688 per block hour to $13,588 per block hour creating a $0.9 million increase. This was offset by a $5.6 million reduction due to charter block hours decreasing 16.4% from 2,685 to 2,246 block hours . The primary driver for the per block hour increase was related to both high market demand and a shortage of supply as competitors reduced capacity. The decrease in charter block hours was due to the increased level of flying on an ACMI basis.
Previous wording
ACMI revenue for the period increased by $58.8 million or 205.9% from $28.6 million in 2023 to $87.4 million in 2024. This variance is driven by an increase from 7,146 block hours in 2023 to 14,775 block hours in 2024, an increase of 106.8% or 7,629 block hours. This volume accounted for 51.9% or $30.5 million of the increase. The average revenue per block hour increased $1,916 per block hours from $3,997 per block hour in 2023 to $5,914 per block hour in 2024 and accounted for $28.3 million or 48.1% of the revenue increase. The primary driver for the increase was related to both high market demand and a shortage of supply as competitors reduce capacity.
Current wording
ACMI revenue for the period increased by $15.7 million or 84.3% from $18.6 million in 2024 to $34.3 million in 2025. This variance is driven by an increase from 3,047 block hours in 2024 to 5,091 block hours in 2025, an increase of 67.1% or 2,044 block hours. This volume accounted for 79.6% or $12.5 million of the increase. The average revenue per block hour increased by $622 per block hour from $6,112 per block hour in 2024 to $6,740 per block hour in 2025. The rate increase accounted for $3.2 million or 20.4% of the increase. The primary driver for the increase was related to both high market demand and a shortage of supply as competitors reduce capacity.
Previous wording
Other revenue for the period decreased by $1.0 million from $1.7 million in 2023 to $0.6 million in 2024. The decrease is primarily driven by less ancillary services provided to our customers.
Current wording
Other revenue for the period increased by $0.6 million from $1.2 million in 2024 to $1.8 million in 2025. The increase is primarily driven by additional ancillary services provided to our customers.
Previous wording
Salaries, wages, and benefits increased $2.4 million from $15.0 million to $17.4 million, or 15.7%, primarily due to the hiring and training of pilots and other airline personnel necessitated by the growing fleet and operations. The total employees grew 15.0% from 585 to 688 and pilots increased from 121 to 143, or 18.2%.
Current wording
Salaries, wages, and benefits increased $2.0 million from $16.8 million to $18.8 million, or 12.0%, primarily due to the hiring and training of pilots and other airline personnel necessitated by the growing fleet and operations. Total employees increased 13.3% from 611 to 692 and pilots increased from 133 to 146, or 9.8%.
Previous wording
Maintenance, materials, and repairs increased by $0.5 million, from $3.0 million to $3.4 million, or 15.6%. An increase of $0.6 million was due to severe weather event that damaged two parked aircraft, multiple bird strikes and damage caused by a third-party vendor, which was offset by $0.2 million decrease primarily due to decreased ad hoc work in spite of the increase in both the number of aircraft and the number of block hours flown which increased 954 or 15% from 6,506 to 7,460 block hours. The rate per block hour remained relatively unchanged at $462 per block hour.
Current wording
Maintenance, materials, and repairs increased by $0.9 million, from $2.9 million to $3.8 million, or 31.3%.An increase of $1.1 million cost increase was primarily due to volume from the increase in both the number of aircraft to 18 aircraft and the number of block hours flown which increased 1,964 or 37.8% from 5,200 to 7,164 block hours. This is offset, $0.2 million decrease as the rate per block hour decreased 4.7% from $564 per block hour to $538 per block hour.
Previous wording
Contracted ground and aviation services increased by $0.2 million from $14.7 million to $14.9 million, or 1.3%. A rate increase or 34.5% per block hour drove an increase of $3.8 million. This was mostly offset by lower charter block hours by 24.7%, which drove a reduction of $3.6 million.
Current wording
Contracted ground and aviation services decreased by $0.6 million from $6.9 million to $6.3 million, or 8.6%, A rate increase of 6.9% per block hour drove an increase of $0.4 million. This was offset by lower Charter block hours of 28.8%, which drove a reduction of $1.0 million.
Previous wording
Insurance increased $0.4 million, from $1.2 million to $1.6 million or 33.5%, primarily related to the increase in the number of aircraft.
Current wording
Insurance decreased $0.4 million, from $1.6 million to $1.2 million or 22.8%, primarily related to the receiving more favorable rates despite the increase in the number of aircraft.
Previous wording
Aircraft rent increased $6.6 million, from $9.4 million to $16.0 million or 70.5%, primarily due to the increase in the number of aircraft from 12 to 18 aircraft in the fleet. $4.2 million or 63.6% of the increase is driven by the increase in the number of aircraft being leased, with the remaining $2.4 million or 36.4% due to rate increase per aircraft and short-term ACMI leases from other airlines due to flights sold exceeded capacity available during the period.
Current wording
Aircraft rent increased $2.5 million, from $12.8 million to $15.2 million or 19.4%, primarily due to the increase in the average number of aircraft, on operating leases from 13.3 to 15.0 aircraft in the fleet. $1.6 million or 65.8% of the increase is driven by the increase in the number of aircraft being leased, with the remaining $0.9 million or 34.2% due to rate increase per aircraft and short-term ACMI leases from other airlines due to flights sold exceeded capacity available during the period.
Previous wording
Operating loss decreased $10.0 million, from an operating loss of $14.6 million to $4.6 million, or 68.7% improvement. In addition, operating loss as a percentage of revenue improved from (13.8%) to (2.8%), an 11.0% improvement. This was a direct result of GlobalX’s ability to grow its revenue faster than its cost structure as the airline works towards achieving scale and profitability. There are a few factors driving the improved margins. The first factor is rates as the Company was able to secure higher rates for both ACMI and Charter contracts. The Company’s ACMI rate grew 47.8%, from $4,001 per block hour to $5,914 per block hour, while Charter rate per block hour is up 30.5% from $9,822 per block hour to $12,821 per block hour. The second factor is scale. As an example, when measured on a per block hour basis, Salaries, wages, and benefits dropped from $1,384 to $1,224 per block hour, an 11.5% reduction. There were also savings on a per block hour basis in fuel, Maintenance, insurance, and general overhead expenses (other) which combined with the other factors drove the improvement. This improvement was, in spite of the impact of the events in September, that effectively took almost 35% of the passenger fleet offline for almost two weeks. This included a severe weather event damaging two parked aircraft, multiple bird strikes across three different aircraft and a third-party vendor who severely damaged an aircraft during a routine check. A number of these are insurable events, but the impact to revenue was significant and the estimated impact to operating loss is over $5M. In addition, our Cargo segment continued to underperform which also served as a multimillion dollar drag to earnings in Q3.
Current wording
Operating income increased $7.7 million, from an operating loss of $4.6 million to an operating income of $3.1 million. .In addition, operating income /(loss) as a percentage of revenue improved from (8.6%) to 4.7%. This was a direct result of GlobalX’s ability to grow its revenue faster than its cost structure as the airline focused on achieving scale and profitability. There are several factors driving the improved margins. The first factor is rates as the Company was able to secure higher rates for both ACMI and Charter contracts. The Company’s ACMI rate grew 10.3%, from $6,112 per block hour to $6,740 per block hour, while Charter rate per block hour is up 7.3% from $12,668 per block hour to $13,588 per block hour. The second factor is utilization as our average utilization per available aircraft grew 6.2%. The third factor is scale. As an example, when measured on a per block hour basis, Salaries, wages, and benefits dropped from $2,863 to $2,490 per block hour, a 13.0% reduction. There were also savings on a per block hour basis in travel, insurance and maintenance, materials and repairs which combined with the other factors drove the improvement.
Previous wording
Net Lossdue to events noted above, decreased by $7.4 million or 40.4%, from a net loss of $18.4 million in 2023 to $11.0 million in 2024.
Current wording
Net Income, due to events noted above, increased by $6.9 million from a net loss of $6.4 million in 2024 to a net income of $0.5 million in 2025.
Previous wording
As of September 30, 2024, the Company had approximately $7.1 million in unrestricted cash and cash equivalents and approximately $0.8 million in restricted cash, a decrease of approximately $4.5 million and $5.3 million from December 31, 2023, respectively primarily due to new aircraft deliveries, deposits, and net loss in operations. Management is confident that the augmented cash and cash equivalents, coupled with the anticipated rise in sales linked to the Company’s strategies to attract more funds, will adequately address the Company’s liquidity requirements. Management is actively assessing various options to procure additional funds, including exploring opportunities for additional equity or debt financing.
Current wording
As of March 31, 2025, the Company had approximately $7.3 million in unrestricted cash and cash equivalents and approximately $2.9 million in restricted cash, a decrease and increase of approximately $5.1 million and $1.2 million, respectively, from December 31, 2024, primarily due to new aircraft deliveries, deposits, and net loss in operations. Management is confident that the augmented cash and cash equivalents, coupled with the anticipated rise in sales linked to the Company’s strategies to attract more funds, will adequately address the Company’s liquidity requirements. Management is actively assessing various options to procure additional funds, including exploring opportunities for additional equity or debt financing.
Previous wording
Net Cash used in operating activities during the nine months ended September 30, 2024 decreased $4.5 million to $2.3 million, consisting primarily of $5.3 million of increase in accounts payable, $3.4 million of decrease in accounts receivable, $0.1 million of decrease in prepaid expenses and other current assets, $15.5 million in noncash adjustments for depreciation and amortization of fixed assets, operating lease right of use assets and debt issue costs, $2.0 million of interest on finance leases, $1.3 million of share-based payments, $0.4 million of bad debt expense and $0.2 million of loss on sale of spare parts. These were partially offset by $10.5 million of decrease in operating leases obligations, $8.6 million of decrease in accrued liabilities and other liabilities, $11.0 million of net loss and $0.4 million of increase in assets held for sale. Net Cash used in operating activities during the nine months ended September 30, 2023 was $6.8 million, consisting primarily of $18.4 million of net loss, $6.2 million of increase of operating lease obligations, $4.9 million of increase of accounts receivable, $1.2 million of increase in prepaid expenses and other current assets and $0.2 million of gain on sale of spare parts. These were partially offset by $8.9 million of increase of accrued liabilities and other liabilities, $3.6 million of increase in accounts payable and $8.9 million in noncash adjustments for depreciation and amortization of fixed assets, operating lease right of use assets and debt issue costs, $1.7 million of share-based payments, $0.3 million of interest on finance leases, and $0.1 million of loss on sale of property.
Current wording
Net Cash provided by operating activities during the three months ended March 31, 2025 increased $2.2 million to $0.1 million, consisting primarily of $6.3 million in noncash adjustments for depreciation and amortization of fixed assets, operating lease right of use assets and debt issue costs, $1.1 million in interest on finance leases, $0.5 million of net income, $0.5 million of share-based payments, and $0.2 million of increase in accounts payable. These were partially offset by $4.1 million of decrease in operating lease obligations, $2.2 million of increase in accounts receivable, $2.2 million of decrease in accrued liabilities and other liabilities, and $0.1 million of increase in prepaid expenses and other current assets. Net Cash used in operating activities during the three months ended March 31, 2024 increased $1.4 million to $2.1 million, consisting primarily of $6.4 million of net loss, $5.9 million of decrease in accrued liabilities and other liabilities, $3.1 million of decrease in operating leases obligations, $0.6 million of increase in prepaid expenses and other current assets, $0.4 million of credit losses, $0.3 million in interest on finance leases, $0.3 million of share-based payments. These were partially offset by $4.5 million of increase in accounts payable, $4.2 million of increase in accounts receivable, and $4.0 million in noncash adjustments for depreciation and amortization of fixed assets, operating lease right of use assets and debt issue costs.
Previous wording
The Company has significant fixed and non-cancelable lease commitments of aircraft, equipment and related maintenance checks. As of September 30, 2024, the Company had total of $19.5 million due in the next 12 months of future minimum lease payments under finance and operating leases. As of September 30, 2024, the Company had total of $105.3 million due after 12 months from the balance sheet date of future minimum lease payments under finance and operating leases, and $29.5 million in notes payable included in the non-current liabilities presented in the Company’s consolidated balance sheet. The Company ended September 30, 2024 with fourteen passenger aircraft and four cargo aircraft and expects the fleet to increase to 15 and 17 passenger aircraft and maintain four cargo aircraft by the end of 2024 and 2025, respectively. To achieve the number of aircraft deliveries in 2024 and 2025, the Company currently has seven aircrafts under lease with partial or total deposit paid.
Current wording
The Company has significant fixed and noncancelable lease commitments of aircraft, equipment and related maintenance checks. As of March 31, 2025, the Company had total of $21.7 million due in the next 12 months of future minimum lease payments under finance and operating leases. As of March 31, 2025, the Company had total of $96.8 million due after 12 months from the balance sheet date of future minimum lease payments under finance and operating leases, and approximately $30 million in notes payable included in the non-current liabilities presented in the Company’s consolidated balance sheet. The Company ended the period of January 1 to March 31, 2025 with fifteen passenger aircraft and four cargo aircraft and expects the fleet to increase to nineteen passenger aircraft and remain at four cargo aircraft by the end of 2025. To achieve the number of aircraft deliveries in 2025, the Company currently has four aircrafts under lease with partial or total deposits paid.
Previous wording
During the nine months ended September 30, 2024, net cash used for investing activities decreased $1.5 million to $6.3 million, consisting of $5.0 million of Purchases of property and equipment and $1.3 million of increase of deposit, deferred costs and other assets. During the nine months ended September 30, 2023, net cash used for investing activities was $7.8 million, consisting of $5.7 million increase of deposit, deferred costs and other assets and $2.1 million of Purchases of property and equipment.
Current wording
During the three months ended March 31, 2025, net cash used in investing activities decreased $0.4 million to $2.9 million, consisting of $2.7 million of Purchases of property and equipment and $0.1 million of increase of deposits, deferred costs and other assets. During the three months ended March 31, 2024, net cash used for investing activities increased $2.1 million to $3.2 million, consisting of $1.7 million of Purchases of property and equipment and $1.5 million of increase of deposits, deferred costs and other assets.
Previous wording
During the nine months ended September 30, 2024, net cash used in financing activities increased $27.7 million to $1.3 million, consisting of $1.4 million of Principal payments on finance leases and $0.1 million of Dividends, partially offset by Proceeds on issuance of shares of $0.2 million. During the nine months ended September 30, 2023, net cash provided by financing activities was $26.4 million, consisting of $32.1 million of Proceeds from note payable, $1.6 million of Proceeds on issuance of shares, partially offset by $7.0 million of Repayment of note payable and $0.3 million of Principal payments on finance leases.
Current wording
During the three months ended March 31, 2025, net cash used in financing activities increased $0.8 million to $1.1 million of net cash used in financing activities, consisting primarily of $1.1 million of Principal payments on finance leases. During the three months ended March 31, 2024, net cash used in financing activities decreased $3.8 million to $0.2 million, consisting of $0.2 million of Principal payments on finance leases.
Previous wording
The Company continuously seeks to identify external sources of capital from time to time depending on our cash requirements, assessment of current and anticipated market conditions, and the after-tax cost of capital. Our access to capital markets can be adversely impacted by prevailing economic conditions and by financial, business and other factors, some of which are beyond our control.
Current wording
The Company continuously seeks to identify external sources of capital from time to time depending on our cash requirements, assessment of current and anticipated market conditions, and the after-tax cost of capital. Our access to capital markets can be adversely impacted by prevailing economic conditions and by financial, business and other factors, some of which are beyond our control. Additionally, the Company’s borrowing costs are affected by market conditions and may be adversely impacted by a tightening in credit markets.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The following discussion should be read in conjunction with our Financial Statements and other financial information appearing and referred to elsewhere in this report.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
The following table compares our Operating Fleet (average aircraft equivalents during the period) and total Block Hours operated:
Previous report — wording carried elsewhere
The following table describes the degree to which variations in revenues in thousands can be attributed to fluctuations in prices and nature of GlobalX services.
Previous report — wording carried elsewhere
The following table compares our Operating Expenses (in thousands):
Previous report — wording carried elsewhere
Aircraft rent increased $21.7 million, from $21.9 million to $43.6 million or 99.1%, primarily due to the increase in the number of aircraft from 10 to 18 aircraft in the fleet. $11.2 million or 51.9% of the increase is driven by the increase in the number of aircraft being leased, with the remaining $10.4 million or 48.1% due to rate increase per aircraft and short-term ACMI leases from other airlines due to flights sold exceeded capacity available during the period.
Previous report — wording carried elsewhere
The following table compares our Non-operating Expenses (in thousands):
Previous report — wording carried elsewhere
Additionally, the Company’s borrowing costs are affected by market conditions and may be adversely impacted by a tightening in credit markets.