On 16MAY, Canada Jetlines issued its first quarter results for 2023, and the growing leisure airline says it hit some "key milestones" in its growth plans.
Jetlines reports its total operating revenues for the first quarter 2023 were $5.1 million as compared to $3.2 million in previous quarter (ending 31DEC, 2022.) That's an increase of 59 per cent.
Similarly, Jetlines' charter and ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing business continued to increase, contributing to the airline's bottom line with Q1 revenues of $3.38 million. That's up from $2.4 million in the last quarter, representing an increase of 57 per cent.
Eddy Doyle, CEO and President of Jetlines commented: “We are pleased to report that several key milestones were achieved in Q1 2023, in February 2023 the Company was proud to introduce Las Vegas as its first international scheduled destination, this was followed in March with a new route from Toronto to Cancun, Mexico. Charter flights and ACMI lease contracts continued to grow throughout the first quarter of 2023 and in March the Company announced it was chosen to provide an aircraft and crew for a 5-month ACMI contract beginning at the end of March, 2023.”
Total operating expenses for the first quarter 2023 were $8.15 million as compared to $6.7 million in Q4 of 2022, an increase of 21 per cent, but the airline notes that increases in expenses were primarily the result of operating more revenue flights "as a result of higher contract volume and the operation of two aircraft for the entire quarter."
The airline also reported its total assets increased mostly as a result of raising financing. In Q1 2023, Jetlines' assets increased to $28,366,094 from $27,289,573 as at 31DEC, 2022.
Total liabilities also increased to $33,351,536 from $28,948,171 in the previous quarter, which Jetlines' attributes to an "increase in deferred revenue and increases in accounts payable and accrued liabilities, explained by the timing of payments and invoices received at the end of the period."
Looking Ahead
“In March, Canada Jetlines announced it was in discussion with Qatar Airways for a potential codeshare agreement where Canada Jetlines would provide service between Toronto and Doha, subject to government approval and completing all applicable agreements between the two airlines," Doyle said.
"This would offer Canadian travelers access to Qatar Airways' unparalleled network via Doha to destinations in the Middle East, Africa, Indian Subcontinent and across Asia. The Company is continuing to work through the Canadian government approval process and definitive documentation with Qatar Airways.”
Mr. Doyle concluded: “Looking forward, Canada Jetlines has recently announced a number of other charter contracts, including with two Canadian football teams. Canada Jetlines 3rd aircraft is expected to be delivered in July 2023 and the Company intends to add up to two additional aircraft to its fleet in 2023 and continue to grow its schedule and Charter/ACMI business.”
However, the company acknowledges it will need to raise more capital in the coming year and beyond "to support its business plan."
