Summary of Global Crossing Airlines Group Conference Call Company Overview - **Company Name**: Global Crossing Airlines Group (OTCPK: JETM.F) - **Industry**: Charter Airline - **Established**: February 2020, certified as an airline in August 2021 - **Current Fleet**: 18 operating aircraft, plans for growth [4][10] Key Financial Metrics - **Valuation**: Trading at 2 times EBITDA, compared to peers sold for 6.9 times EBITDA [2] - **Market Size**: U.S. charter market estimated at $3.9 billion, cargo market at $5.8 billion, totaling approximately $9 billion revenue opportunity [10] - **2024 Revenue**: $223 million [10] - **Q3 Financials**: $58 million in revenue, $18.9 million EBITDA, 9,900 block hours flown [21] Business Model - **Charter Operations**: Operates on an ACMI (Aircraft Crew Maintenance Insurance) basis, which is more prevalent in Europe [7][12] - **Cost Structure**: No fixed schedule; revenue based on hourly rates for flights, with fuel and crew costs passed through to customers [12][13] - **Profitability Focus**: Aims for $300,000 to $400,000 operating income per aircraft per month [13] Growth Strategy - **Fleet Expansion**: Plans to grow from 20 aircraft, with current leasing strategy to avoid high lease rates [16][17] - **Base Locations**: Established bases in Miami, Alexandria, Louisiana, and Harlingen, Texas to enhance operational efficiency and competitiveness [18] - **Market Reach**: Flown to over 450 cities in 67 countries, with flexibility to adapt to customer needs [19][20] Competitive Landscape - **Market Position**: Largest charter operator in the U.S., capitalizing on competitors' failures due to high debt and service delivery issues [9][40] - **Risk Management**: Maintains a disciplined approach to fleet management and maintenance reserves to avoid operational pitfalls [41][42] Operational Insights - **Pilot Recruitment**: Offers unique benefits to pilots, including a Gateway Program allowing flexible living arrangements, which helps attract experienced captains [33][34] - **Maintenance Strategy**: Leases all aircraft, paying into maintenance reserves to ensure funds are available for heavy maintenance checks [41] Future Outlook - **Profitability Goals**: Focus on improving utilization and profitability through high-margin ACMI work, while navigating a weak cargo market [26] - **Investment Highlights**: Fastest-growing charter airline with a strong employee investment and belief in the company's future [28][30] Conclusion - **Overall Assessment**: The company believes its valuation does not reflect its growth potential and operational achievements, encouraging investors to consider the unit economics of adding aircraft to the fleet [43]

Core Insights - Prosper Stars & Stripes achieved a net return of +9.8% in Q3 2025, outperforming its peer group which returned +3.8% and the Russell 2000 Index which returned +12.4% [1] - Year-to-date, the fund returned +8.6%, lagging behind the HFRI's +13.6% and the Russell's +10.4% [1] - The fund's long book performed well, while the short book negatively impacted overall performance [1] Company Highlights: Park Aerospace Corp. (NYSE:PKE) - Park Aerospace Corp. had a one-month return of 2.78% and a 52-week gain of 28.52%, with a market capitalization of $390.154 million as of November 26, 2025 [2] - The company was the second-best contributor in the fund's long book during Q3 2025, focusing on advanced composite materials for aerospace and defense [3] - Park has a sole-sourced agreement for producing composite materials for the LEAP-1A engine, which powers 60-70% of the A320 family of aircraft [3] - Airbus plans to increase production from 50 to 78 planes per month, benefiting Park's operations [3] - Park is involved in the Valkyrie loyal wingman program with Kratos and has historically achieved EBITDA margins above 20% in the aerospace and defense sectors [3] - The company announced a significant investment to expand production capacity for components used in missile systems, responding to increased demand from the US Army [3] - Military sales accounted for 42% of FY25 sales, with expectations for growth in the coming years [3] - The stock is valued at 25x FY26 EBITDA, with projections to reach the mid to high $20s within the next 12 months [3]