Global Crossing Airlines Group (OTCPK:JETM.F) Conference Transcript

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]