Global Crossing Airlines (JET) AI Stock Analysis

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Global Crossing Airlines

(NEO-L:JET)

47Neutral

Global Crossing Airlines shows robust revenue growth and improvements in key financial metrics, primarily driven by its ACMI business. However, the company faces significant operational and financial challenges, such as profitability issues and high leverage. The technical analysis indicates a stagnant stock price, and the valuation is unattractive due to negative earnings. The strategic shift towards high-margin contracts is promising, but challenges in the cargo market and reduced charter revenue pose risks. Overall, the stock's performance is underwhelming, with substantial room for improvement.

Global Crossing Airlines (JET) vs. S&P 500 (SPY)

Market Cap

$69.11M

Dividend YieldN/A

Average Volume (3M)10.01K

Price to Earnings (P/E)―

Beta (1Y)N/A

Revenue Growth41.78%

EPS Growth47.68%

CountryCA

Employees678

SectorIndustrials

Sector Strength81

IndustryAirlines, Airports & Air Services

Share Statistics

EPS (TTM)0.03

Shares Outstanding45,221,672

10 Day Avg. Volume10,010

30 Day Avg. Volume10,010

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Global Crossing Airlines Business Overview & Revenue Model

Company DescriptionGlobal Crossing Airlines (JET) is an airline operator that provides passenger and cargo charter services. Based in the United States, the company operates a fleet of Airbus A320 family aircraft. Global Crossing Airlines focuses on offering flexible and customized air travel solutions to a diverse range of clients, including tour operators, sports teams, corporate groups, and government agencies.

How the Company Makes MoneyGlobal Crossing Airlines makes money primarily through its charter flight services. The company generates revenue by offering tailored flight solutions to charter customers who require specific travel itineraries and schedules. This includes serving tour operators who need to transport vacationers to various destinations, sports teams traveling for competitions, and corporate clients organizing group travel. Additionally, the company earns income from providing cargo charter services, where they transport goods for businesses that need flexible freight solutions. Partnerships with travel agencies, event organizers, and logistics companies also contribute to Global Crossing Airlines' revenue streams.

Global Crossing Airlines Financial Statement Overview

Summary

Global Crossing Airlines demonstrates strong revenue growth, but substantial operational and financial challenges persist. The company is facing profitability issues and a highly leveraged balance sheet, posing financial risk. Cash flow generation shows signs of improvement, but the company needs to manage its leverage and enhance operational efficiency to achieve financial stability.

Income Statement

Neutral

The income statement shows significant revenue growth, rising from $97.1 million in 2022 to $223.75 million in 2024, which is a positive sign. However, the company remains unprofitable, with a net loss of $11.47 million in 2024. Gross profit margin improved to 15.8%, but the EBIT and net profit margins are negative, indicating ongoing operational inefficiencies.

Balance Sheet

Negative

The balance sheet reflects financial instability with negative stockholders' equity of $29.56 million as of 2024. The company is highly leveraged, with a debt-to-equity ratio that cannot be calculated due to negative equity. This poses significant financial risk. Total assets have grown, but liabilities exceed them, contributing to negative equity.

Cash Flow

Negative

The cash flow statement shows improvement in operating cash flow, turning positive to $8.07 million in 2024 from negative in previous years. However, free cash flow remains weak at $0.85 million, with significant capital expenditures. The company's ability to generate cash is improving but remains a concern given its negative net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
223.75M	160.12M	97.11M	14.29M	0.00
	Gross Profit
35.38M	11.55M	7.24M	-6.99M	-253.40K
	EBIT
-1.13M	-15.87M	-11.24M	-17.16M	-2.65M
	EBITDA
18.14M	-5.40M	-8.79M	-17.13M	-2.74M
	Net Income Common Stockholders
-11.47M	-21.01M	-15.82M	-19.82M	-2.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.35M	11.60M	1.88M	5.24M	526.17K
	Total Assets
166.74M	131.33M	51.16M	39.07M	7.17M
	Total Debt
149.95M	108.58M	39.15M	25.01M	4.12M
	Net Debt
137.61M	100.28M	37.27M	19.77M	3.60M
	Total Liabilities
196.21M	151.20M	58.42M	34.83M	6.87M
	Stockholders Equity
-29.55M	-20.09M	-7.26M	4.25M	302.38K
Cash Flow		Free Cash Flow
853.00K	-5.42M	-8.76M	-8.73M	-1.39M
	Operating Cash Flow
8.07M	-1.38M	-6.85M	-8.08M	-1.39M
	Investing Cash Flow
-9.99M	-13.19M	-1.91M	-3.34M	-680.36K
	Financing Cash Flow
-1.71M	26.78M	6.23M	18.86M	2.62M

Global Crossing Airlines Risk Analysis

Global Crossing Airlines disclosed 10 risk factors in its most recent earnings report. Global Crossing Airlines reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Global Crossing Airlines Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIF	73 Outperform	C$2.67B	20.41	9.13%	5.04%	6.46%	-5.54%
BBD.B	72 Outperform	$8.44B	21.35	-18.58%	―	16.31%	4.12%
AC	68 Neutral	$4.99B	3.13	112.28%	―	1.93%	-24.67%
Sector *	64 Neutral	$4.25B	11.72	5.24%	249.79%	4.07%	-9.45%
TTNM	56 Neutral	C$60.34M	―	-20.72%	5.84%	5.42%	-331.87%
CHR	51 Neutral	C$514.81M	―	-1.28%	―	-12.40%	-529.26%
JET	47 Neutral	$69.11M	―		―	41.78%	47.68%

* Industrials Sector Average

Performance Comparison

TSE:JET

Global Crossing Airlines

1.36

0.00

0.00%

TSE:AC

Air Canada

14.79

-3.74

-20.18%

TSE:BBD.B

Bombardier

81.46

7.90

10.74%

TSE:CHR

Chorus Aviation

19.11

3.15

19.74%

TSE:EIF

Exchange Income

52.83

8.78

19.93%

TSE:TTNM

Titanium Transportation

1.33

-0.87

-39.55%

Global Crossing Airlines Earnings Call Summary

Earnings Call Date:Mar 05, 2025

(Q4-2024)

% Change Since: 0.00%|

Next Earnings Date:May 08, 2025

Earnings Call Sentiment Neutral

Global Crossing Airlines showed strong revenue growth driven by its ACMI business and fleet expansion. However, challenges persist in the cargo market, which has impacted financials. While the strategic shift towards airframe ownership is promising, the decrease in charter revenue highlights the transitional challenges. Overall, the company is positioned for future growth, with improvements in financial metrics and strategic partnerships contributing positively.

Q4-2024 Updates

Positive Updates

Significant ACMI Revenue Growth

ACMI business revenue grew more than 3x to $36 million compared to the year-ago quarter, primarily driven by an increase in fleet, strong customer demand, and growth in government business.

Expansion of Fleet and Utilization Improvement

The company expanded its fleet and increased block hours by 26% year-over-year. Average utilization per aircraft increased 12% to 473 block hours.

Record Cargo Block Hours

Surpassed 1,600 block hours flown in Q4, marking the strongest quarter for cargo in GlobalX history.

Improved Financial Performance

Revenue in Q4 increased by 11% to $59.9 million. EBITDA increased to $5.1 million from a $0.4 million loss, and EBITDAR increased to $19.3 million from $11.4 million.

New Strategic Partnerships and Contracts

Secured new contracts, including a six-month ACMI contract with DHL and a seven-month ACMI contract with a South American tour operator, guaranteeing over 1,800 block hours.

Strategic Shift to Airframe Ownership

Began acquiring airframes to optimize capital deployment and maintain a strong balance sheet, with expected delivery of the first airframe in Q2 2025.

Negative Updates

Decrease in Charter Revenue

Charter revenue decreased to $22 million, accounting for 36% of total revenue compared to 75% in the same quarter last year, reflecting a strategic shift to ACMI.

Cargo Market Challenges

Continued challenges in the cargo market with an estimated $10 million in losses in 2024, primarily in the first three quarters.

Impact of External Factors on Cargo

Uncertainty in the cargo market due to tariff issues, impacting the overall market despite attempts to mitigate exposure.

One-time Charge Impacting Net Income

Net income was impacted by a one-time $1.3 million charge related to a lease guarantee associated with Canada Jetlines' bankruptcy.

Company Guidance

During the call, Global Crossing Airlines provided detailed guidance on their financial operations, emphasizing the strong growth and strategic shifts in their business model. They reached the high end of their Q4 and fiscal year 2024 guidance for key metrics, including revenue, EBITDA, EBITDAR, and block hours flown. The company reported a significant expansion in their ACMI (Aircraft, Crew, Maintenance, and Insurance) operations, which generated $36 million in revenue for the quarter, tripling from the previous year and now accounting for 60% of total revenue. Charter revenue, however, decreased to $22 million, representing 36% of total revenue, reflecting a strategic shift from charter to ACMI services. They flew 7,745 block hours, marking a 26% increase year-over-year, with ACMI block hours more than doubling to 5,758. On the cargo side, they flew over 1,600 block hours, the highest in their history, despite challenges in the market. The company achieved a 12% increase in average aircraft utilization to 473 block hours. Financial metrics showed improvement with an increase in adjusted net income to $1.2 million and EBITDA rising to $5.1 million. They ended the quarter with $14 million in cash and restricted cash. Looking forward, they expect further fleet expansion by over 20% in the second half of 2025 and focus on securing high-margin ACMI contracts to sustain profitability.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.