Canada Jetlines Reports Q2 2023 Financial Results
Canada Jetlines Operations Ltd. has reported second quarter 2023 interim financial results. All financial figures are in Canadian dollars and in accordance with IFRS as presented in the interim financial statements.
Total operating revenues for the second quarter 2023 were $8.8 million as compared to $5.1 million in the previous quarter, an increase of 72.8%.
The company continues to increase the operation of charter and ACMI (Aircraft, Crew, Maintenance, and Insurance) flights generating $6.34 million this quarter as compared to $3.38 million in the previous quarter, representing an increase of 87.5%.
Total operating expenses for the second quarter 2023 were $9.23 million as compared to $8.15 million in the previous quarter, an increase of 13%. Increases were primarily driven by increased flying activity.
Total assets increased to $27,860,429 at the end of the current quarter from $27,289,573 as at Dec. 31, 2022.
The minor increase in total assets is primarily attributable to an increase in current assets that was partially offset by a decrease in Right-of-use assets due to depreciation.
Total liabilities increased to $33,753,436 at the end of the current quarter from $28,948,171 as at Dec. 31, 2022.
The increase was made up of the liabilities associated with an increase in deferred revenue and an increase in accounts payable and accrued liabilities, explained by the timing of payments and invoices received at the end of the period.
Eddy Doyle, CEO and President of Jetlines commented: “We are pleased to report that several key milestones were achieved in Q2 2023. The Company has achieved exceptional flying hours in Q2 2023 as compared to Q1 2023, an increase of 265% and a 72.8% increase in its operating revenue.”
Doyle noted that: “Canada Jetlines also took delivery of its 3rd aircraft at the end July 2023. The Company intends to add up to two additional aircraft to its fleet in 2023 and continue to grow its schedule, with the upcoming fall/winter season, and grow its Charter/ACMI business.”
The company ended the quarter with $5.1 million in current assets, an increase of $2 million compared to Dec. 31, 2022. The increase is mainly due to the increase in cash balance.
Current liabilities increased from $8.2 million at Dec. 31, 2022 to $13.1 million, mainly due to an increase of $0.8 million in accounts payable and accrued liabilities. In addition, there is a $4 million increase in deferred revenue for cash collected in terms of future flying.
Based on the company’s working capital position, the company will need to raise additional capital to support its business plan. The company is seeking additional capital in the form of debt, convertible debt or equity in order to further invest in the business and facilitate the continued growth of the fleet, including the acquisition of additional leased aircraft, as well as additional working capital.