To borrow a phrase born in the 1960’s, charter and cargo focused Global Crossing Airlines just “keeps on keeping on” as it delivers solid quarter over quarter growth and already has signed contracts through 2024 worth almost $200 million.  

All figures are USD.

The best way through the current market malaise is to keep performing and as is evident in the below chart, there’s a clear disconnect between what management has delivered and is forecasting, which shines a spotlight on an irrational market. 

In its May 17th webinar to discuss first quarter 2022 results, CEO Ed Wegel and CFO Ryan Goepel reaffirmed forecasts of profitability by the third quarter of this year and a base case of $90 million in revenues.

As an aside, the revenue forecast is a little more than twice its current market cap of approximately $40 million based on 50 million shares issued. It would be a test to find a company on any Canadian Exchange that had no revenues last summer and:

  • Eight months later reported Q1 numbers of $16.3 million.
  • Forecast Q2/2022 revenues of $19+ million
  • Base case $90 million 2022 forecast revenues
  • Profitable Q3/2022 or just a year after starting commercial operations

Also keep in mind these management forecasts:

  • Annualized gross profit of $1.5 to $2.2 million per passenger aircraft
  • Annualized gross profit of $4.2 to $5.5 million per cargo freighter

And put that in context of fleet growth and run your own numbers:

  • 2022: 10 Passenger / 3 Cargo
  • 2023: 13 Passenger / 8 Cargo
  • 2024: 19 Passenger / 15 Cargo
  • 2025: 25 Passenger / 25 Cargo

To reiterate a few closing points, there is no fuel cost risk as this is a pass through cost in contracts because GlobalX is a charter and cargo airline NOT a scheduled carrier like Air Canada or American Airlines. 

CEO Ed Wegel stated the first five cargo freighters are essentially totally booked already and this is before the first freighter starts flying in Q4 of this year. He also stated “our contracts are recession proof” due to the nature of their clients.

To view the webinar CLICK HERE

To view the investor deck CLICK HERE

The Howard Group (HG) is not a registered investment advisor and as such, individuals should consult a registered investment advisor prior to making any investment decisions. The information presented was obtained from sources believed to be reliable but is not guaranteed, is not all conclusive and should not be relied upon as the sole source of information/opinion for making an investment decision. The Howard Group receives remuneration for Capital Market Communication activities and HG or its employees may own securities in client companies.