GlobalX reports $7.5m Q2 loss as aircraft delivery delays take toll

South Florida start-up carrier Global Crossing Airlines (GlobalX) reports a Q2 loss of $7.5m as aircraft delivery delays and long turnaround times for aircraft maintenance continue hindering the airline’s operations. GlobalX lost $6.8m during the same three-month period last year. The charter operator said on 9 August that it generated $31.5m in quarterly revenue, compared with $17.4m last year. The carrier’s quarterly expenses reached $38.3m, including $12.1m spent on employee wages and benefits, $6m on fuel and $6.8m on leasing aircraft. The company adds that it was negatively impacted by “accelerated cockpit crew hiring and training to prepare for a busy 2023 summer schedule, resulting in an increase of approximately $4.2m in training expenses”, and the delayed delivery of its second Airbus A321 freighter. The aircraft was set to be delivered in late 2022 but finally entered revenue service in June. “While we had built in 90 days of flying for that airplane and 90 days of revenue for the quarter, we only got 10 days because of staffing issues and supply chain issues at the MROs,” says Ed Wegel, CE of GlobalX. Amid these challenges, Wegel says that “it was a very good quarter for us, setting us up for success in the future”. He points to GlobalX recently securing $35m of financing from investment firm Axar Capital Management, which comes with a six-year repayment term. The firm’s purchase of GlobalX stock will be used to “refinance all of the company’s existing indebtedness” and expand the carrier’s fleet of passenger and freighter aircraft”, Wegel said 2 August. The charter carrier flew 3,585 block hours in the second quarter, up 70% from last year. And company executives say the worst supply-chain snags and delivery delays are in the rearview mirror.<br/>