10-K: GlobalX Achieves First Operating Profit Amid Fleet Expansion

Global Crossing Airlines Group Inc. reported its first positive operating income in 2025, driven by strong ACMI demand and strategic fleet growth, despite ongoing net losses and liquidity concerns.

Summary

• Global Crossing Airlines Group Inc. (GlobalX) operates a US Part 121 domestic flag and supplemental airline using Airbus A320 family aircraft for ACMI and Charter services across the Americas and Europe.
• The company reported its first positive operating income of $8.9 million in 2025, a significant improvement from a $1.1 million operating loss in 2024.
• Total revenue increased by 10.1% to $246.3 million in 2025 from $223.8 million in 2024.
• ACMI revenue surged by 42.8% to $175.8 million in 2025, driven by a 37.5% increase in Block Hours and higher average revenue per Block Hour.
• Charter revenue decreased by 34.8% to $62.3 million in 2025, primarily due to a strategic reduction in Charter Block Hours and the company's exit from the Cuba-based charter market.
• Net loss improved by 77.2% to $2.6 million in 2025 from $11.4 million in 2024.
• The operating fleet grew to 19.0 average aircraft equivalents in 2025, up 15.7% from 16.4 in 2024, with total Block Hours increasing by 24.0% to 33,013.
• GlobalX plans to expand its passenger fleet from 16 to 21 aircraft and maintain its cargo fleet at 4 aircraft by the end of 2026.
• The company entered into new lease agreements for four A319 passenger aircraft, took delivery of one A321 passenger aircraft, one A319 aircraft, and one A320 airframe, and purchased one A320 passenger aircraft in 2025.
• Headcount was reduced from a high of 727 in July 2025 to 661 in December 2025 to align with revenue projections.
• The company continues to face a working capital deficit of $60.5 million and a retained deficit of $73.6 million as of December 31, 2025, raising substantial doubt about its ability to continue as a going concern without additional financing.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive development, as the company achieved its first operating profit and significantly reduced its net loss, demonstrating progress in its business model. However, persistent working capital deficits and going concern doubts temper the overall sentiment.

Positives

• Achieved first positive operating income of $8.9 million in 2025, a significant turnaround from a $1.1 million operating loss in 2024.
• Total revenue increased by 10.1% to $246.3 million in 2025.
• ACMI revenue grew substantially by 42.8% to $175.8 million, driven by increased Block Hours (37.5%) and higher rates.
• Average utilization per available aircraft increased by 6.8% to 2,062 Block Hours in 2025.
• Successfully expanded the fleet, taking delivery of one A321 passenger aircraft, one A319 aircraft, and one A320 airframe, and purchasing one A320 passenger aircraft.
• Pilot headcount increased from 142 to 154 in 2025, supporting growth.
• Insurance expenses decreased by 15.8% due to favorable renegotiation of rates.
• Travel expenses decreased by 15.0% due to management's cost-reduction efforts and local base creation.
• Net loss significantly improved by 77.2% from $11.4 million in 2024 to $2.6 million in 2025.
• Received approval from the Australian Civil Aviation Authority for flights into and out of Australia.

Negatives

• Continued working capital deficit of $60.5 million and a retained deficit of $73.6 million as of December 31, 2025.
• Substantial doubt about the company's ability to continue as a going concern without ongoing income generation or additional financing.
• Cargo charter market remains a significant drag on earnings due to low rates and low utilization, with this dynamic expected to continue into 2026.
• Charter revenue decreased by 34.8% in 2025, partly due to exiting the Cuba-based charter market.
• Maintenance, materials, and repairs expenses increased by 44.7% due to increased Block Hours and significant price inflation in labor and parts.
• Depreciation and amortization expenses increased by 90.8% due to new aircraft on capital leases and purchased assets.
• Interest expense increased by 28.5% due to increased capital leases and aircraft purchases.
• Experienced aircraft delivery delays in late Q3 2025, leading to headcount reductions.

Risks

• Limited operating history makes it difficult to forecast revenue and evaluate future viability or profitability.
• History of net losses and anticipated increasing operating expenses, with no assurance of achieving or maintaining profitability.
• Negative cash flow from operating activities is expected to continue for the foreseeable future.
• Inability to obtain additional financing on favorable terms could delay or postpone growth strategy or impact the ability to continue as a going concern.
• Reliance on third-party suppliers for goods and services, with potential for significant interruptions or price increases.
• Vulnerability to unscheduled maintenance due to a limited number of aircraft, potentially causing material adverse financial and reputational impacts.
• Exposure to unexpected increases in aircraft fuel prices or supply disruptions.
• Dependence on the Airbus A320 family of aircraft makes the company vulnerable to design defects, mechanical problems, or adverse public perception.
• Vulnerability of intellectual property rights, particularly branding rights, to inadequate protection or litigation.
• Quarterly results are subject to fluctuations due to seasonality in the charter airline industry.
• Threatened or actual terrorist attacks or security concerns could adversely affect demand and increase costs.
• General economic conditions (e.g., recession, inflation, labor disputes, pandemics, weather, unemployment, interest rates) may reduce demand for services.
• Inflation may increase operating costs and negatively impact demand.
• Potential involvement in costly and time-consuming litigation.
• Increased labor costs, union disputes, or labor-related disruptions could adversely affect the business.
• Difficulties in securing operating capacity at primary hubs (Miami, San Antonio, Alexandria, Mesa Gateway, Harlingen) or increases in associated fees.
• Heavy reliance on technology and automated systems, with potential for significant revenue loss and operational difficulties if systems fail.
• Cybersecurity risks and potential data breaches could lead to liability, reputational damage, and adverse financial effects.
• Non-compliance with environmental laws and regulations, including CORSIA, could result in increased costs and operational impacts.
• Significant aircraft-related fixed obligations under lease and debt arrangements could impair liquidity.
• Rising maintenance and repair costs as the fleet ages, with significant heavy maintenance obligations expected around the same time for the current fleet.
• Difficulties in recruiting and retaining FAA-licensed personnel, especially pilots and mechanics, due to competition.
• Risks associated with operating in international emerging markets, including political/economic instability and compliance failures.
• Limits on foreign ownership and control (no more than 25% of voting stock, no more than 49.9% of outstanding stock owned by non-U.S. citizens).
• Extensive regulation by U.S. and foreign governmental agencies, with compliance potentially increasing costs.
• Volatility in the trading price of common stock due to limited daily trading volume and other factors.
• Common stock is considered a 'penny stock' (price less than $5.00/share), which may reduce liquidity.
• Substantial influence of insiders (approximately 48% beneficial ownership) could limit other stockholders' ability to affect key transactions.
• Potential dilution of existing stockholders' ownership interest from the exercise of warrants or conversion of Class A Non-Voting Common Stock.
• No intention to pay cash dividends for the foreseeable future.
• Delaware law and corporate charter provisions may discourage, delay, or prevent a change in control.
• Increased costs and management time devoted to compliance initiatives as a public company.
• Disclosure controls and procedures may not prevent or detect all errors or acts of fraud.

Future Outlook

GlobalX expects to improve profitability in 2026 by securing higher rates for both ACMI and Charter contracts. The company plans to increase its passenger aircraft fleet from 16 to 21 and maintain its cargo fleet at 4 aircraft by the end of 2026, projecting an increase in total revenue. Management is actively assessing options for additional equity or debt financing and is confident that augmented cash and anticipated sales will address liquidity requirements.

Management Comments

• "The twelve month period ended December 31, 2025, was a time when GlobalX invested in its people, prepared for its growth, and established a robust infrastructure for its future."
• "We are happy with the improvement in 2025 and will continue this focus into 2026."
• "The Companys increasing scale also contributed to this positive result, for example, there were savings on a per block hour basis in travel and insurance, which combined with the other factors to drive the improvement."
• "Management is confident that the augmented cash and cash equivalents, coupled with the anticipated rise in sales linked to the Companys strategies to attract more funds, will adequately address the Companys liquidity requirements."

Industry Context

StockSavvy.ai notes that GlobalX's strategic shift from the cargo charter market, which is experiencing low rates and utilization, to the passenger charter market, which demonstrates strong demand, aligns with current market dynamics. The company's focus on the Airbus A320 family for cost-efficiency and operational capability is a common strategy among low-cost carriers. The reported increase in ACMI revenue and average utilization per aircraft indicates effective capitalization on market demand, particularly in a competitive environment where other charter operators might lower pricing. The expansion into new international markets, such as Australia, suggests a proactive approach to diversification and growth beyond traditional routes.

Comparison to Industry Standards

• GlobalX's choice of the Airbus A320 family is a common strategy among low-cost airlines globally, such as Spirit Airlines and Flair Airlines (mentioned in the filing as companies where GlobalX management has experience), due to its lower fuel burn, operational capability, maintenance dispatch reliability, and spare parts availability compared to the Boeing 737 family.
• The company's emphasis on a single aircraft family for cost control is a recognized industry best practice for efficiency, reducing training, operating, and maintenance costs.
• The reported average utilization of 2,062 Block Hours per available aircraft in 2025, while an improvement, should be benchmarked against industry leaders. For instance, some highly efficient narrow-body operators can achieve utilization rates upwards of 10-12 block hours per day (approximately 3,650-4,380 hours annually), suggesting there may still be room for GlobalX to optimize its aircraft deployment.
• The increase in ACMI rates and overall revenue per Block Hour indicates GlobalX is successfully navigating competitive pressures, potentially by leveraging its newer fleet for cost-efficient operations, a key differentiator in the charter market.

Management Changes

Corporate Governance

Legal Proceedings

• A former executive, Mr. Mark Morabito, was alleged to have committed insider trading in October 2021.
• GlobalX and Mr. Morabito settled the insider trading matter on July 25, 2025, with GlobalX paying approximately $4,000. The full settlement was paid in Q3 2025.

Related Party Transactions

• In 2023, the company issued $35.7 million in senior secured notes to an entity whose executive remained a member of the Board of Directors in December 2025.
• Red Oak Partners LLC and related funds delivered $12,000 to the company in 2025, representing disgorgement of short-swing profits from transactions in July and December 2024.

Stakeholder Impact

• Shareholders: Potential for significant dilution if additional equity financing is raised. Volatility in stock price and penny stock status may affect investment value. Insiders hold substantial influence. No cash dividends expected.
• Employees: Headcount reductions in late Q3 2025 due to aircraft delivery delays. Increased pilot headcount in 2025. Risk of increased labor costs and union disputes.
• Customers: Strong demand in the passenger charter market. Cargo charter market faces low rates.
• Creditors: Working capital deficit and retained deficit raise substantial doubt about going concern, potentially impacting creditors. Significant fixed obligations under leases and debt arrangements.
• Suppliers: Reliance on third-party specialists and suppliers, with potential for disruptions or price increases.

Next Steps

• Increase passenger aircraft fleet from 16 to 21 by the end of 2026.
• Maintain cargo aircraft fleet at 4 by the end of 2026.
• Continue securing higher rates for ACMI and Charter contracts.
• Improve seasonality on Cargo aircraft contracts.
• Actively assess options for additional equity or debt financing to fund future requirements.
• Continue to invest in people, prepare for growth, and establish robust infrastructure.
• Continue focus on reducing travel expenses.
• Evaluate the impact of ASU No. 2024-03 on disclosures for the 2027 Annual Report.

Key Dates

Recommendation

GlobalX demonstrated significant operational improvement by achieving its first operating profit and substantially reducing its net loss in 2025, driven by strong ACMI demand and strategic fleet expansion. This indicates positive momentum in its business model. However, the persistent working capital deficit and the "going concern" warning from auditors highlight significant financial risks and the need for substantial additional financing. The cargo market remains a drag, and increased maintenance and interest costs are notable. While the operational turnaround is encouraging, the underlying financial fragility warrants a cautious "hold" recommendation until there is clearer evidence of strengthened liquidity and a sustainable path to overall profitability without relying on further capital raises that could dilute existing shareholders.

Keywords

Airline, Charter, ACMI, Airbus A320, Airbus A319, Airbus A321F, Aircraft Leasing, Aviation, Global Crossing Airlines, Financial Results, Operating Income, Fleet Expansion, Risk Factors, Going Concern, Miami International Airport, Cargo Operations, Passenger Operations, Maintenance, Regulatory Compliance, Cybersecurity