Q1 2022 Global Crossing Airlines Group Inc Earnings Call

Ed Wegel: -- contracts that we have signed and updated forecast numbers. We're going to talk a little bit about the A321 freighter which we will introduce into revenue service by the fourth quarter of this year, which is a very important growth element in our story and talk a little bit about the unit economics of both the A320 passenger aircraft, as well as the 321 freighter. So, with the Q1 behind us now, again, we had a very good first quarter.

Unknown Speaker: --contracts that we have signed and updated forecast numbers. We're going to talk a little bit about the A321 crater which we will introduce into revenue service by the fourth quarter of this year, which is a very important growth element in our story. And talk a little bit about the unit economics of both the A320 passenger aircraft, as well as the 321 crater. So, with Q1 behind us now, again, we had a very good first quarter despite the negative effects of Omicron, which as you remember, affected everyone in late December, January, and into the mid part of February. So we were not immune to that, we had a number of pilots and flights and crew, and even office staff who were affected by that personally and, as well, a number of our clients had to either cancel, defer, or delay some of their trips because of Omicron. Despite that, our revenue was a little over 16 million for the quarter, which was a good jump over the fourth quarter of 2021. We're now projecting a 90-plus million in revenue for the full year 2022.

Speaker 2: By the fourth quarter of this year, which is a very important growth element in our story. And talk a little bit about the unit economics of both the eight 320 passenger aircraft as well as the 321 greater. So with the Q1 behind us now again this- we had a very good first quarter.

Speaker 1: By the fourth quarter of this year, which is a very important growth element in our story. And talk a little bit about the unit economics of both the AP three and 20 passenger aircraft, as well as the three hundred and twenty-one greater. So, with the Q1 behind us now again this, we had a very good first quarter.

Ed Wegel: Despite the negative effects of Omicron, which as you remember, affected everyone late December, January, and into the mid part of February. So, we were not immune to that. We had a number of pilots and flight crew, and even office staff who were affected by that personally. And as well, a number of our clients had to either cancel, defer or delay, some of their trips because of Omicron. Despite that, our revenue was a little over $16 million for the quarter, which was a good jump over the fourth quarter of 2021. We're now projecting $90 plus million in revenue for the full year 2022 and total contracts and otherwise that we now have in place exceed $200 million and that breaks down over the next three years as follows. So, $70 million in signed contracts now for 2022. So, it's a short jump to get us to over $90 plus million for the full year. For 2023, we have $76 million in signed contracts already and for 2024, we've already booked $52 million in revenue contracts. So, we've got a good base, a good foundation of revenue for the company as we move forward.

Speaker 1: Affected everyone late December jet newuar and into the mid part of February . So we were not vieune to that we had a number of pilots and like the crew and even office staff were affected by that personally and as well. A number of our clients had to either canceled defer delay some of their trips because of Om grro. Despite that our revenue was little over 16 million for the quarter which was a good jump over the fourth quarter of 2021. We're now projecting a 90 plus million revenue for the full year 2020 two.

Speaker 1: Despite the negative effects of owe CRO on which as you remember.

Speaker 1: Affected everyone late December , Jack duar into the mid part of February , So we were not vieune to that. We had a number of pilots and, like the crew, and even office staff, were affected by that personally and, as well, a number of our clients had to either canceled defer, delay some of their trips because of omi grro. Despite that, our revenue was little over 16 million for the quarter, which was a good jump. Over the fourth quarter of 2021, we're now projecting a 90 plus million in revenue Bo the full year. Two and thousand and twenty two.

Speaker 1: And total contracts and alloyze that we now have in place, it seeed two million. And that breaks down over the next three years as follows: So seven million in sign contracts now for two thousandtwenty Twenty two So it's a short jump to get us to over 90 plus million for the full year. We're thousand and Twenty three we have 76 million in sign contracts already and for 2020 four we've already books fifty two million dollars in revenue contracts. So we've got a good base, a good foundation of revenue for the company as we move forward.

Unknown Speaker: And total contracts and other [inaudible] that we now have in place exceed 200 million and that breaks down over the next three years as follows: so 70 million in signed contracts now for 2022, so it's a short jump to get us to over 90-plus million for the full year. For 2023, we have 76 million in signed contracts already and for 2024, we've already booked 52 million dollars in revenue contracts. So we've got a good base, a good foundation of revenue for the company as we move forward. We'll talk about some of those contracts in a moment, but the vast majority of those are recession-proof. And as we look at the possibility of a recession later this year in the US and Canada, maybe all of the Americas, this bodes well for us because we are largely shielded from that economic reality.

Ed Wegel: We'll talk about some of those contracts in a moment, but the vast majority of those are recession proof.

Speaker 1: We'll talk about some of those contracts in a moment, but the vast majority of those are recession proof.

Ed Wegel: And as we look at the possibility of a recession later this year in the U.S. and Canada, maybe all of the Americas, this bodes well for us because we are largely shielded from that economic reality.

Speaker 1: And as we look at the possibility of a recession later this year in the US and Canada, maybe all of the Americas, this bodes well for us because we are largely shielded from that economic reality.

Ed Wegel: Our operating hours per quarter will increase 300% in the fourth quarter this year versus the quarter that just ended. So, we're going to have tremendous growth over the balance of this year, which comes from additional passenger aircraft, as well as the introduction of the first freighter aircraft and we'll get into this in a moment, but we'll have three freighter aircraft on the certificate by the end of this year. So, we're forecasting our profitability in Q3. Q2, we're still investing heavily in pilot recruitment, pilot training, IT systems, all of the things that we need to lay further foundation for our growth to take on additional aircraft and to take on the A321 freighters.

Speaker 2: 300% in the fourth quarter of this year versus the quarter that just ended. So we're going to have tremendous growth over the balance of this year, which comes from additional passenger aircraft as well as the introduction of the first freighter aircraft, and we'll get into this in a moment. But we'll have three freighter aircraft on the certificate by the end of this year. So we're forecasting our profitability Q3, Q2. We're still investing heavily in pilot recruitment, pilot training, it systems- all of the things that we need to lay further foundation for our growth, to take non additional aircraft and to take on the eight 3, 21 craders.

Unknown Speaker: Our operating hours per quarter will increase 300% in the fourth quarter this year, versus the quarter that just ended. So we're going to have tremendous growth over the balance of this year, which comes from additional passenger aircraft as well as the introduction of the first crater aircraft- and we'll get into this in a moment- but we'll have three crater aircraft on the certificate by the end of this year. So we're forecasting our profitability Q3, Q2, we're still investing heavily in pilot recruitment, pilot training, IT systems- all of the things that we need to lay further foundation for our growth to take on additional aircraft and to take on the A321 craters.  So with that, I'll turn it to Ryan to go through the quarter versus Q4 of last year  

Speaker 1: 300% in the fourth quarter this year, versus the quarter that just ended.

Speaker 1: So we're going to have tremendous growth over the balance of this year, which comes from additional passenger aircraft as well as the introduction of the first freighter aircraft- and we'll get into this in a moment- but we'll have three freighter airaft on the certificate by the end of this year. So we're forecasting on our profitability Q3, Q2. We're still investing heavily in pilot recruitment, pilot training, it systems- all of the things that we need to lay further foundation for our growth, to take non additional aircraft and to take on the three hundred and twenty one craders.

Multiple speakers: [Ed Wegel] So, with that, I'll turn it to Ryan to go through the quarter versus Q4 of last year. [Ryan Goepel] And as Ed stated Q4, we saw $11 million in revenue which we grew to $16 million, which is a pretty large increase. One of the benefits you'll notice as we had aircraft is we don't necessarily add one for one in all other costs. So, for example, salaries and wages did not increase the proportion of revenue and as we add more aircraft, we'll see that see that continue. Aircraft fuel is largely impacted by how many contracts we do that are either ACI contract. We flew a lot of March schools in March and so that included fuel and those cost again, that's all cost plus basis. So, that's a pass through cost that we mark up, so we don't take any fuel risks there. Maintenance expense was up as we basically on boarded six aircraft pretty quickly at the end of 2021 and there's some upgrades that need to be put in place. And that wasn't necessarily -- that was a big increase over Q4. When we look at the travel and insurance, those are just a rent, that's just a reflection of adding aircraft. So, we're excited about the cost structure, we are continuing to invest in people, we're continue to invest in systems as Ed alluded to, in order for us to feed the growth that we're projecting through the rest of the year. [Ed Wegel] Some of the expenses that we highlight here, as Ryan said, relate to the three aircrafts that we brought on in December of last year. There are certain maintenance expenses involved in bringing those aircrafts on.

Speaker 2: In Q4 we saw $11 million of revenue which we grew to 16, which is a pretty large increase. One of the benefits you'll notice is we had aircraft is we don't necessarily add one for one in all other costs. So, for example, salaries and wages did not increase to proportional revenue, and as we add more aircraft, we will that see that continue. Aircraft fuel is largely impacted by how many contracts we do that are either [inaudible] contract- we fuelled a lot of March of schools and March and so that included fuel in those costs. Again, that's on a cost plus basis, so that's a pass-through cost that we mark up so we don't take any fuel risk there. [inaudible] expense is up as we basically onboarded six aircraft pretty quickly at the end of 2021 and there are some upgrade that need to be put in place and that was a big increase over Q4. When we look at the travel and insurance, and rent, those are just a reflection of added aircraft. So we're excited about the cost structure we are continuing to invest in people, we're continuing to invest in systems that alluded to in order for us to feed the growth that we're projecting through the rest of the year. 

Speaker 1: Some of the expenses that we highlight here as Ryan said, relate to the three aircrafts that we brought on in December of last year. There were certain maintenance expenses involved in bring those aircraft on. We've [inaudible] them fully in this quarter. We believe some of those will be recaptured from the less [inaudible] and some of the other maintenance providers of those aircrafts. We also had professional fees were up because we got our S1 finalized and made effective about the US SCC. We had a number of charges related to that, all of which we took in this quarter and expensed them so that we don't have any overhang going forward. And as we are building our systems, we are required under the FAA to build and develop our human infrastructure in terms of our maintenance capabilities, our dispatch, our scheduling, and our other systems, with the people and the systems that we need before we take the airplanes on. So we incur those expenses, the training expenses, the salary expenses before additional aircraft are brought on to the certificate. So that's an important thing to note, we have to have all of the pieces and elements in place before the FAA and DOT will allow us to bring additional aircraft on. We have done all of that hard work. We have spent the money. We have spent a lot of money on people and systems that allow us to effectively double our fleet from now until the end of this year. 

Ed Wegel: We've expensed them fully in this quarter, we believe some of those will be recaptured from the lessors and some of the other maintenance providers of those aircraft. We also had professional fees were up because we got our S-1 finalized and made effective at the U.S. SEC. We had a number of charges related to that all of which we took this quarter and expensed them so that we don't have any overhang going forward. And as we are building our systems, we are required under the FAA to build and develop our human infrastructure in terms of our maintenance capabilities, our dispatch, our scheduling, and our other systems, with the people and the systems that we need before we take the airplanes on. So, we incur those expenses, the training expenses, the salary expenses before additional aircraft are brought onto the certificate. So, that's an important thing to note is that we have to have the all of the pieces and elements in place before the FAA and DoT will allow us to bring additional aircraft on. We have done all of that hard work. We have spent the money, we have spent a lot of money on people and systems that allow us to effectively double our fleet from now until the end of this year.

Speaker 1: Our dispatch are scheduling and our other systems.

Speaker 1: Our human infrastructure in terms of our maintenance capabilities, our dispatch, our scheduling and our other systems, with the people and the systems that we need before we take the airplanes on. So we incur those expenses- the training expenses, of salary expenses- before additional aircraft are brought on to the certificate. So that's an important, important thing to note, that is, that we have to have the all of the pieces and elements in place before the FA and DOT will allow us to bring additional aircraft. Not we have done all of that hard work. We have spent the money. We have spent a lot of money on people and systems that allow us to effectively double our fleet from now until the end of this year. As we look at some of the key contracts that we have signed over the past three to four months.

Speaker 1: With the people and the systems that we need before we take the airplanes on. So we incurred those expenses- the training expenses, a salary expenses- before additional aircraft brought on to the certificate. So that's an important, important thing to note, that is, that we have to have the all of the pieces and elements in place before the FA and dot will allow us to bring additional aircraft on. We have done all of that hard work, we have spent the money, we have spent a lot of money on people and systems that allow us to effectively double our fleet from now until the end of this year.

Ed Wegel: As we look at some of the key contracts that we have signed over the past three to four months, a couple of things of note. So, we've got over $200 million in contracts for 2022 and beyond, so, 2022, 2023, and 2024. And we are still building on those every day, we signed contracts almost every day. We've got LOIs that are contingent on us, getting airplanes in such as some of our freighters, but we're very secure in those LOIs, we've got deposits -- cash deposits up from the clients for those contracts. Key contracts include the U.S. government, we will do just shy of 5,000 hours by the government this year, 2022. And we've already looked and have booked over 9,000 hours so far for 2023 and 9,000 in 2024. U.S. government is recession proof and that business will continue to grow for us.

Speaker 2: A couple of things of note. So we've got over two million contracts for 2022 and beyond of 2000 and twent-two, 23 and 24, and we are still building on those every day. We sign contracts almost every day. We've got LOIs that are contingent on us getting airplanes in, such as some of our freghters, but we're very secure in those LOIs. We've got deposits.

Speaker 1: As we look at some of the key contracts that we have signed over the past three to four months, a couple of things to note. So we've got over 200 million in contracts for 2022 and beyond, so 2022, 2023, and 2024. And we are still building on those every day. We sign contracts almost every day. We've got LOIs that are contingent on us getting airplanes in, such as some of our craters, but we're very secure in those LOIs. We've got cash deposits up from the clients for those contracts. Key contracts include the US government. We will do just shy of 5000 hours for the government this year, 2022, and we've already looked to and have booked over 9000 hours so far for 2023, and 9000 in 2024. The US government is recession-proof and that business will continue to grow for us. 

Speaker 1: Cash deposits up from the clients for those for those contracts. Key contracts include our, the? U's government. We will do just shy a 5000 hours for the government this year 2022, and we've already looked to and have booked over 9000 hours so far for 2023 and 9000 in 2024. U's government is recession proof and that business will continue to grow for us.

Ed Wegel: Our contract to fly from Miami into Havana and from Tampa to Havana has been renewed. This represents a little over 1,700 hours in 2022 and as you may have seen yesterday, the Biden administration opened up all the Cuba province cities now for air service again. So, we're projecting that we will fly to four cities on top of Havana relatively soon and on a full year basis, those additional flights represent about 780 hours per year. Our collegiate fan and incentive travel business continues to grow. We're signing up more and more brokers. We're providing dedicated aircraft to the NCAA and others, providing dedicated aircraft to brokers who specialize in certain conferences and certain Championship Series. For instance, we're putting two airplanes into the NCAA College World Series that starts later this month and because of our performance in March Madness, which was the college basketball championship, where we had two aircraft this year, we have now been asked to provide six dedicated aircraft to that championship next March. So, we're building a reputation, on-time, reliable, clean, great aircraft, clean systems, great crews. And so as a result, we're seeing repeat business and that business is actually growing in terms of the volume.

Speaker 1: Our contract to fly from Miami to Havana and from Tampa to Havana has been renewed. This represents little a over 1700 hours in 2022 and as you may have seen yesterday the Biden administration opened all of Cuba's province cities now for air service again. So we're projecting that we will fly to four cities on top of Havana relatively soon and on a full year basis, those additional flights represent about 780 hours per year. Our collegiate fan and incentive travel business continues to grow. We're signing up more and more brokers. We're providing dedicated aircraft to the NCAA and others. We're providing dedicated aircraft to brokers who specialize in certain conferences in certain Championship series. For instance, we're putting two airplanes into the NCAA college world series that starts later this month, and because of our performance in March Madness which was the college basketball Championship where we had two aircraft this year, we have now been asked to provide six dedicated aircraft at that Championship next March. So we're building a reputation: on time, reliable, clean, great aircraft, clean systems, great crews and so, as a result, we're seeing repeat business and that business is actually growing in terms of the volume.

Speaker 1: Championship next March. So we're building a reputation: on time reliable, clean bregreat aircraft, clean systems, great crews and so, as a result, we're seeing repeat business and that business is actually growing in terms of the volume.

Ed Wegel: We're also flying later this month and into June for a major U.S. airline, LCC. We're going to do 171 hours for them in what we call sub-service. So, we'll fly certain routes for them. They are growing rapidly, they need additional capacity on some of their routes. So, we're opening up a route for them. This is really one of the reasons that we built this airline the way we did as a U.S. 121 scheduled flight carrier so that we're able to perform missions just like this. And so we mimic that other airline with their onboard service, but with our crews, our aircraft and they came to us because again, our reputation already established for our on-time and our clean aircraft, our great crews and we think this business will continue to expand for us with other airlines in the U.S.

Speaker 1: We're also flying later this month and into June for a major US airline, LCC. We're going to do 171 hours for them and what we call sub-service. So we'll fly certain routes for them. They are growing rapidly. They need additional capacity on some of their routes, so we're opening up a route for them. This is really one of the reasons that we built this airline the way we did as a US 121 scheduled flag carrier so that we're able to perform missions just like this. And so we mimic that other airline with their onboard service, but with our crews, our aircraft, and they came to us because again, our reputation already established for our on time and our clean aircraft, our great crews, and we think this business will continue to expand for us with other airlines in the US.

Speaker 1: We're going to do 171 hours for them and what we call subservice So will aply certain routts for them. They are growing rapidly. They need additional capacity on some of their routo, So we're opening up a route for them. This is really one of the one of the reasons that we built this airline the way we did as a? U's one hundred and Twenty one scheduled flag carrier, So that we're able to perform missions just like this. And so we mimic that other airline with their onboard service but with our crews are an aircraft and they came to us because again, our reputation already established for our on time and our clean aircraft or great crews, and we think this business will continue to expand for us with other airlines in the U? S.

Speaker 1: We're going to do 171 hours for them and what we buil subservice. So we'll dvly certain routts for them.

Speaker 1: They are growing rapidly. They need additional capacity on some of their routoes, So we're opening up a route for them. This is really one of the one of the reasons that we built this airline the way we did as a? U one hundred and twenty one scheduled flag carrier, So that we're able to perform missions just like this. And so we mimic that other airline with their onboard service, but with our crews are aircraft, and they came to us because again, our reputation already established for our on time and our clean aircraft are great crews and we think this business will continue to expand for us with other airlines in the U S.

Ed Wegel: We've also signed with a major European tour operator for the summer. We're moving two airplanes to Amsterdam in the end of June. We'll fly 400 hours per month per aircraft in both July and August. And this is the start of a major program with this tour operator that should go on for the next 10 or 20 years, however long these programs will be in existence, but we've got a great relationship with them. We've got everything in place to move those airplanes over. What is a relatively quieter time for us here in the U.S. in the summertime, we're able to get almost double utilization out of two aircraft in July and August.

Speaker 1: We've also signed with a major European tour operator for the summer. We're moving two airplanes to Amsterdam at the end of June. We'll fly 400 hours per month for aircraft in both July and August, and this is the start of a major program with this tour operator that should go on for the next 10 or 20 years, however long these programs will be in existence. But we've got a great relationship with them. We've got everything in place to move those airplanes over. What is a relatively quieter time for us here in the US in the summer time, we're able to get almost double utilization out of two aircrafts in July and August.

Speaker 1: Will be in existence, but we've got a great relationship with them. We've got everything in place to move those airplanes over certain what is a relatively quieter time for us here in the? U us in the summertime. We're able to get almost double utilization at a two aircraft in July and August .

Ed Wegel: On the cargo side, we're making great progress now as we get closer to having the first two airplanes on our certificate. We've got LOIs and actually a signed agreement now with a major Latin American airline to provide them one airplane, minimum of 200 hours a month at a great ACMI rate, we'll be announcing with this airline this deal within the next few days. They're putting out their entire fleet plan. This is part of it. We'll do a separate announcement as well a GlobalX for this contract. We also have a major logistics operator in the Caribbean, that has signed for a number of hours, not fully a dedicated aircraft, but we have other pieces of contracts that we will put in place to fill in for this airplane.

Speaker 1: On the cargo side, we're making great progress now as we get closer to having the first two airplanes on our certificate. We've got LOIs that actually signed an agreement now with a major Latin American airline to provide them one airplane minimum of 200 hours a month at a great ACMI rate. We will be announcing with this airline this deal within the next few days. They're putting out their entire fleet plan. This is a part of it. We will do a separate announcement as well at global X for this contract. We also have a major logistics operator in the Caribbean that is signed for a number of hours, not fully a dedicated aircraft, but we have other pieces of contracts that we'll put in place to fill in for this airplane. As we look out over our delivery schedule, which we'll get into in a moment, of the A321 crater, we now foresee that the first five aircrafts are essentially fully place or fully booked going forward due to the demand that we're seeing for this particular aircraft type, the A321 crater. So we feel very, very confident about our cargo business going forward. 

Speaker 1: To provide them one airplane minimum of 200 hours a month at a great ACM. I rate will be announcing with this airline this deal within the next few days. They're putting out their entire fleet plan. This is part of it- will do a separate announcement as well at global X for this contract. We also have a major logistics operator in the Caribbean that signed for a number of hours, not fully, a dedicated aircraft, but we have other pieces of contracts that will put in place to fill in for the airplane.

Speaker 1: To provide them one airplane minimum of 200 hours a month at a great acm. I rate will be announcing with this airline this deal within the next few days. They're putting out their entire fleet plan. This is part of IT- will do a separate announcement as well at global X for this contrcraft. We also have a major logistics operator in the gibbean that is signed for a number of hours, not fully a dedicated aircraft, but we have other pieces, contracts that will put in place to fill in for this airplane. As we look out over the, our delibvery schedule, which we'll get into in a moment, of the 8, three hundred twenty one freghters, we now foresee that the first five aircraft are essentially fully place or fully booked going forward D to the due to the demand that we're seeing for this particular aircraft type.

Ed Wegel: As we look out over our delivery schedule, which we'll get into in a moment, of the A321 freighters, we now foresee that the first five aircrafts are essentially fully placed or fully booked going forward due to the demand that we're seeing for this particular aircraft type, the 321 freighter. So, we feel very, very good, very, very confident about our cargo business now going forward.

Speaker 1: Of the ap-one freiters.

Speaker 2: We now foresee that the first five aircraft are essentially fully placed or fully booked going forward, due to the due to the demand that we're seeing for this particular aircraft type.

Speaker 1: The free 21 freghghter. So we feel very, very good very, very confident about our cargo business now going forward.

Speaker 2: Sure, our current status of aircraft- we have obviously the six aircrafts on board. Our first A320, our next A320 which is 2, four will show pict's in paint- it should be delivered here at end of the month, our first 319, which will be delivered in June. These are hopeful to be here earlier in the year. They have been going through significant maintenance checks and they've been delayed on that side but we're excited to get them on board. Our next 321 will be coming in July and the next 319 we to hope to have here in August. And then when you look at the cargo aircraft, we have 13 from leases or alloys of deposits, and seven additional less or commitments, we'll walk through that on a later slide. The first aircraft is to be delivered in August to allow us to complete our certification, which is all the track and we'll detail that process. Second aircraft, first week of September and we hope to go on to revenue service by October first.

Multiple speakers: [Ed Wegel] You want to touch on this for us? [Ryan Goepel] Sure, current status of aircraft, we have obviously the six aircraft on board, our first A320, with our next A320, which is adding to a four, we'll show pictures, it's in paint and should be delivered here at the end of the month. Our first 319, which will be delivered in June. These were hoped to be here earlier in the year. They've been going through significant maintenance checks and they've been delayed on that side, but we're excited to get them on board. Our next 321 will be coming in July and the next 319, we hope to have here in August. But then when you look at the cargo aircraft, we have 13 on from lease -- either from leases or LOIs, with deposits, and seven additional lessor commitments. We'll walk through that on a later slide. The first aircraft to be delivered in August to allow us to complete our certification, which is on track and Ed will detail that process. Second aircraft, first week of September and both are going to  revenue service by October 1st.

Ryan Goepel: When you look at our team, I think one of the key elements is getting pilots through our training program. We currently have 30 in training, we're starting classes every two weeks. That pilot group is growing and that's given us the capacity to go do the work that we need to do over the next nine months. But looking at bases, Miami, Atlantic City, Las Vegas are operating and we're opening a San Antonio office for flight attendants and maintenance to support our government work down there. So, all elements are growing, we're still adding the planes, we're adding the people and the systems and this is kind of where the investment is. And if you look at the next slide, it's real, 284, it's been painted. This is the next one to join, it's in our original delivery. We're excited. This is another aircraft that we're getting from Alaska, so our three sisterships all sequential serial numbers, which is great for us from a maintenance and record standpoint. And the two we have now have been performing admirably throughout.

Speaker 2: When we look at our team, I think one of the key elements is getting pilots through our training program. We currently have 30 in training and they are starting classes in the next two weeks. That pilot group is growing and that's given us the capacity to go do the work that we need to do over the next nine months. But looking at bases, Miami, Atlantic City, and Las Vegas are operating and we're opening a San Antonio Office for flight attendance and maintenance to support our government work down there. So all elements are growing. We're still adding the planes, we're adding the people, and the systems and this is kind of where the investment is. And if you look at the next slide, it's real, 284, it's been painted. This is the next one to join. It's in our original delivery, we're excited. This is another aircraft that we're getting from Alaska so one of our three sister ships, all sequential serial numbers, which is great for us from a maintenance and record standpoint- and the two we have now have been performing admirably throughout.

Ryan Goepel: Looking in Q2, you want me to --. Looking in Q2, our objectives, we're targeting $90 million in revenue. EBITDAR positive. Now, EBITDAR is a metric that is used in aviation and basically its earnings before interest taxes, depreciation and rent. It's commonly used with air analyzing airlines because it allows apple-to-apples comparison by removing a rental cost. The reason this is important is allows you to compare companies with similar operations who choose to acquire their assets differently whether they buy the asset, or they lease the asset, EBITDAR is a metric that allows you to compare the two. We're looking to take delivery as you said earlier over next 319 and 320. We'll get two additional passenger aircraft LOIs signed to support the government contracts. We'll announce multiple cargo contracts and we are bidding all the Fall football season work. We look to finalize those contracts, there's been a lot of competition and we're trying to see what we can do to optimize the schedule and our utilization of our aircraft for the season.

Speaker 5: Looking Q2 or objectives, we're targeting 19 million of revenue. Even our positive now even our- is the metric that is used in aviation and basically it's earnings before interest taxes, depreciation of rent. It's Comm only the use of analyzing airlines because allows AP ical, apve' comparison by removing the rental cost. The reason this is important is a allowed to precompare companies a similar operations who choose to acquire their assets different, whether they buy the asset or they lease the asset. Even's a metric allowed you to compare it to. We're looking to take delivery to said earlier: over next 3, 19 and 3: 20 we will get two additional passast aircraft alloy signence support. The government contracts will announce multiple cargo contracts and we are bidding all the fall football season work. We look to finale those contracts's going. A lot of competition. We're trying to see what we need to optimiz the schedule and our utilization of our aircraft for the season.

Speaker 2: Looking in Q2, our objectives, we're targeting 19 million of revenue, EBITDAR positive. Now, EBITDAR is the metric that is used in aviation and basically, it's earnings before interest, taxes, depreciation, and rent. It's commonly used with analyzing airlines because it allows that comparison by removing the rental costs. The reason this is important is it allows you to compare companies of similar operations who choose to acquire their assets differently, whether they buy the asset or they lease the asset, EBITDAR is a metric that allows you to compare the two. We're looking to take deliveries as we said earlier, our next is 319 and 220. We'll get two additional passenger aircraft alloy signs to support the government contracts. We'll announce multiple cargo contracts and we are bidding all the fall football season work. We look to finalize those contracts, there has been a lot of competition and we're trying to see what we need to optimize the schedule and our utilization of our aircraft for the season. I think now I'll turn over to Ed who will walk through cargo.

Multiple speakers: [Ryan Goepel] I think now I'll turn over to Ed, who will walk through cargo. [Ed Wegel] So, this is the concept design for our 321 freighter. As we said, the first two aircraft will be delivered first, mid-August, the second, near the end of August. We have our teams up at both conversion facilities, working with the conversion vendor to get these aircraft converted to cargo, both are outstanding OEM contractors, one is Precision and the second one is ST Engineering, which is the largest aircraft maintenance engineering MRO in the world.

Speaker 3: This is the concept design for our 321 crater. As we said, the first two aircrafts will be delivered first mid-August, the second near the end of August. We have our teams up at both conversion facilities working with the conversion vendor to get these aircraft converted to cargo. Both our outstanding OEM contractors- one is Precision and the second one is ST engineering, which is the largest aircraft maintenance engineering MRO in the world. And so we've been up to Lake City Florida for the one aircraft and the second aircraft at San Antonio. You may have seen some of the pictures of our cutting the door ceremony in San Antonio and in a few weeks we'll have a ceremony in Lake City Florida for the placement of the cargo door into our second aircraft. 321 versus the competition--we've gone through this a bit, it's on our website. But this airplane is the next shiny thing in the aviation business. We've seen [inaudible] and Japan airlines committing wholesale to this aircraft after we committed to the aircraft, so we feel very good about that. It competes very well against the 757 and beats the pants off of the 737800.

Speaker 2: Maintenance aircraft maintenance engineering- mro in the world.

Ed Wegel: And so we've been up to Lake City, Florida for one aircraft and the second aircraft at San Antonio, you may have seen some of the pictures of our cutting the door ceremony in San Antonio. And in a few weeks, we'll have a ceremony in Lake City, Florida, for the placement of the cargo door into our second aircraft.

Speaker 3: Maintenance aircraft Maine in engineering M R O in the world. And so we've been up to Lake City Florida, for the one aircraft and the second aircraft at San Antonio. You may have seen some of the pictures of our cutting the the door ceremony in San Antonio and in a few weeks we'll have a ceremony in Lake City Florida, for the placement of the cargo door into our second aircraft three twenty one versus the competition. We've gone through this a bit. It's on our website but this, this airplane, is the next turny thing in the aviation business. We've seen Lo ona and Japan airlines committing wholesale to the to this aircraft after we committed to the aircraft. So we feel very good about that. It competes very well against seven 5, seven and beats the pants off of seven 3, seven eight hundred.

Ed Wegel: 321 versus the competition, we've gone through this a bit, it's on our website. But this airplane is the next shiny thing in the aviation business. We've seen Lufthansa and Japan Airlines committing a wholesale to this aircraft after we committed to the aircraft, so we feel very good about that. It competes very well against the 757 and beats the pants off the 737-800. In both cases, more volume and less fuel burn in both of those aircrafts. 14 pallet positions gives us a tremendous airplane and as we have met with potential clients and walk them through the economics, they have gotten very, very excited about the ability for us to operate this aircraft for them. So, we're talking to some major package carriers here in the U.S., I think we'll have a contract here in the next few months. As I said, the major Latin airline, which we will announce in a few days has actually asked for as many as four of these airplanes from us to operate for them. And we're talking to other major Latin carriers, all of them very, very interested in this airplane. And as I said, we are confident that the first five of our 321 freighters have been placed with minimum monthly hourly guarantees that make this a very, very profitable aircraft and operation for us.

Speaker 3: In both cases, more volume and less fuel burn and then both of those aircraft. 14 pilot positions give us a tremendous airplane and as we have met with potential clients and walked them through the economics, they have gotten very, very excited about the ability for us to operate this aircraft for them. So we're talking to some major package carriers here in the US, I think we have a contract here in the next few months, as I said, the major Latin Airline which we will announce in a few days, as actually I asked for as many as four of these airplanes from us to operate for them. We're talking to other major Latin carriers, all of them very, very interested in the airplane and, as I said, we are confident that the first five of our 321 craters have been placed with minimum hourly guarantees that make this a very, very profitable aircraft and operation for us.

Speaker 6: They have gotten very, very excited about the ability for us to operate the ccraft for them. So we're talking to some major package carriers here in the U's. I think we'willll have a contract here in the next few months, as I said, the major Latin airline which we will announce in a few days, as actually I asked for as many as four of these airplanes from us.

Speaker 6: To operate for them, but we're talking to other major Latin carriers, follow of them very, very interested in the airplane and, as I said, we are confident that the first five of our three and 21 freghters have been placed with minimum month of the hourly guarantees that make this a very, very profitable aircraft and operation for us.

Speaker 3: To operate for them. ofbut we're talking to other major Latin carriers, all of them very, very interested in the airplane and, as I said, we are confident that the first five of our 321 freghters have been placed with minimum month of the hourly guarantees that make this a very, very profitable aircraft and operation for us.

Ed Wegel: This is just a comparison of the A321 versus the 757 and 737. You see that we effectively get 14% more containers than the 757 and I believe it's about 55% more than the 737-800.

Speaker 3: This is just a comparison of the A321 versus the 757 and 73, you see that we effectively get 14% more containers than the 75 and I believe it's about 55% more than the 737800. So this airplane is just absolutely the best-in-class narrow-body crater that's out there. We'll talk in a moment, but we have 13 under firm lease or LOIs with deposits and commitments for seven more from lessors. So they're out finding the feed-stock for us to convert these airplanes. They've committed to us that they will find the airplanes, convert them, and put them into our fleet. This is our delivery schedule, two airplanes, again late August, early September for the first two, December for the third. We're working to get two more in the first half of 2023. We're working to move both of those to January, February, working with the conversion shops to do that. And then we have a very good schedule of deliveries after that, July September, October, and then on through January. We'll fill in some of that as our lines open up for the conversion, but this is a great delivery schedule for us. It allows us to absorb the airplanes, get the news in place, get the contracts in place for us to do this. So when we are operating 28 321 craters, we will be extremely profitable.

Ed Wegel: So, this airplane is just absolutely the best-in-class narrow body freighter that's out there. We'll talk in a moment, but we have 13 under firm lease, or LOIs with deposits and commitments for seven more from lessors. So, they're out finding the feedstock for us to convert these airplanes, they've committed to us that they will find the airplanes, convert them and put them into our fleet. This is our delivery schedule. Two airplanes again, August, late August, early September for the first two, December for the third. We're working to get to more in the first half of 2023. We're working to move both of those to January, February, working with the conversion shops to do that. And then we have a very good schedule of deliveries after that - July, September, October, and then on through January. We'll fill in some of that as some more lines open up for the conversion, but this is a great delivery schedule for us. It allows us to absorb the airplanes, get the crews in place, get the contracts in place for us to do this. So, when we are operating 20 A321 freighters, we will be extremely profitable.

Speaker 1: Convert that and put them into our fleet. This is our deliveries schedule to ourair: planes. Again August , late August , early September for the first, two December for the third we're working to get two more in the first half of two thousand 20- three We're working to move both of those two January February , working with the conversion shops to do that and then we have a very good schedule: deliveries after that: July September , October and then on through January we'll fill in. Some of that is our lines open up for the conversion. But this is a great delivery schedule for us, allows us to absorb the airplanes, get the grouves in place, get the contracts in place for us to do this. So when we are operating 20 E 3, 20 one graders, we will be, we will be extremely profit.

Speaker 3: Convert that and put them into our fleet. This is our deliveries schedule 2: ourairplanes. Again August , late August , early September for the first, two December . For the third, we're working to get two more in the first half of two thousand 20, three. We're working to move both of those two February February , working with the conversion shops to do that and then we have a very good schedule deliveries after that: July September October , and then on through January we'll fill in. Some of that is our lines open up for the conversion. But this is a great delivery schedule for us, allows us to absorb the airplanes, get the newves in place, get the contracts in place for us to do this. So when we are operating 20 EI, three hundred, 20 one graders, we will be, we will be extremely profit. themhere's pictures of the first two aircraft.

Ed Wegel: Here's pictures of the first two aircraft: manufacturer serial number 1199 and 1438, both in progress. Doors have been cut. And these are on track to be delivered to us in late August. So, again, we feel very good about the two OEMs conversion shops that we're working with, they are best-in-class. They do this better than just about anybody on the planet. So, one of them is an Airbus affiliate that works with ST Engineering.

Speaker 1: Manufacturers: sheial number 11, 99 and 14: 38, both in progress doors have beenc and these are on track to be delivered to us in late August . So again we feel very good about the two OEMs diversion shops that we are working with their best in class. They do this better than just about anybody on the planet. So one of them is it is an Airbus affiliate that works with St engineering.

Speaker 3: Here are pictures of the first two aircraft, manufacturers' serial number 1199 and 1438, both in progress, doors have been [inaudible], and these are on track to be delivered to us in late August. So again, we feel very good about the two OEM conversion shops that we are working with, they are best-in-class. They do this better than just about anybody on the planet. So one of them is an Airbus affiliate that works with ST engineering. The second is Precision, which works with ATSG, which is one of the premier air cargo carriers as well as conversion shops in the world. So we've got two great names behind us that will be providing us, between the two of them, all 20 of our A321 crater. So we're in a good partnership, we're in good hands with these two conversion shops.

Ed Wegel: The second is Precision, which works with ATSG which is one of the premier air cargo carriers as well as conversion shops in the world. So, we've got two great names behind us, that will be providing us, between the two of them, all 20 of our A321 freighters. So, we're in good partnership, we're in good hands with these two conversion shops.

Multiple speakers: [Ryan Goepel] Sure. I think one of the things we've been trying to get across is the story and how to understand the story and what's the potential of the story. I know we've been a little bit vague on this, we figured we'd be pretty direct on today's call. When we look at modeling how we want to -- what we believe each passenger aircraft and each cargo aircraft can contribute to the company, these are kind of the targets that we work with and we're comfortable that this is what we'll hit over a 12-month period with each individual aircraft. So, if you're looking at a passenger aircraft, we expect to be $1.5 million and $2.2 million gross profit before overhead per passenger and $4.2 million to $5.5 million gross profit before overhead per cargo. These are impacted by basically utilization rates and obviously, charter rates. But those are the targets we were looking to get and we're starting to see. Obviously, you have to have an overhead to pay for this. By and large that's in place, we think we have enough of an overhead in place for the first 20 aircraft. We are staffed for 24/7 operation, which allows our operation center and our maintenance facilities or maintenance support to work around the clock which is a big step up which we worked through in the first quarter. So, we think with this fleet plan, I think we try to make the math as pretty straightforward as possible is where we see the opportunity being. I think with that I'll turn over to our favorite slide.  [Ed Wegel] So, this with all the great news, we got certified in the middle of pandemic, sent airplanes to Afghanistan, got several more aircraft on the certificate, got up to six aircraft in January.

Speaker 4: Sure I think one of the things we've been trying to get across is the story and how to understand the story and what's the potential of the story. I we've been a little bit bigag on this. We figuure. We be pretty direct on today's call when we look at modeling how we want to what we believe each passenger aircraft, each cargo aircraft can contribute to the company. These are kind of the targets that we work with and we're comfortable that this is what will' hitover a 12 TH period with each individual aircraft. So if you're looking at a pastger aircraft, we expect and a half two point two gross profit before over overhead per passenger and four point two to gross profit per overhead before overhead per cargo. These are are impacted by basically utilization rates and obviouslysee charter rates. So those are the targets we're looking get and we're starting to see think obviousyou have to have an overhead to pay for this. By and large, that's in place. We think we have enough of an over head in place for the first twent aircraft. Are staff for 24: seven operation. Which allows our operations center, maintenance facilities, our maintenance support to work around the clock, which was, which is a big step up, which we work through in the first quarter. So we think, with this fleet plan, I think we try to make the math as pretty straightcourt as possible where we see in the opportunity being. I think with that we'll turn over to part favorite. So this with all of the well, the great news we went from that sort about in the middle of pandemicsent, our airlines of Afghanistan got several aircraft on the certificate, got up to six aircraft in January .

Speaker 1: Sure, I think one of the things we've been trying to get across is the story and how to understand the story and what's the potential of the story. I know we've been a little bit big on this, we figured we'd be pretty direct on today's call. When we look at modeling what we believe each passenger aircraft, each cargo aircraft can contribute to the company, these are kind of the targets that we work with and we're comfortable that this is what we'll hit over a 12-month period with each individual aircraft. So if you're looking at a passenger aircraft, we expect one a half to two point two gross profit before over overhead per passenger and four point two to five and a half gross profit per before overhead per cargo. These are impacted by basically utilization rates and obviously charter rates, so those are the targets we're looking to get and we're starting to see. I think obviously, you have to have an overhead to pay for this. By and large, that's in place. We think we have enough of an overhead in place for the first twenty aircraft. We are staffed for 24/7 seven operation, which allows our operations center, maintenance facilities, and our maintenance support to work around the clock, which is a big step up, which we worked through in the first quarter. So we think, with this fleet plan, I think we try to make the math as pretty straightforward as possible where we see the opportunity being. I think with that we'll turn over to our favorite part. 

Speaker 5: Which allows our operations center, maintenance facilities, our maintenance support to work around the clock, which was, which is a big step up, which we work through in the first quarter. So we think, with this fleet plan, I think we try to make the math as pretty straightcourt as possible where we see in the opportunity being. I think with that we'll turn over to part favorite. So this with all of the well, the great news we went from that sort about in the middle of pandemicsent, our airlines of Afghanistan got several aircraft on the certificate, got up to six aircraft in January .

Speaker 5: Favorite like. So this, with all of the well great news we went from, got sort ied in the middle of pandemic.

Speaker 2: Spent airplanes of afghanistan. Got civil aircraft on the certificate. Got up to six aircraft in January .

Speaker 2: So with all of the great news, we got certified in the middle of the pandemic, sent our airlines to Afghanistan, got several more aircraft on the certificate. We got up to six aircraft in January, now working very quickly and closely to get to a breakeven and into a positive EBITDAR and fourth quarter profitability. We have tied up 20 of the most valuable aircraft in the world today, which is the A321 crater. We will have 10 passenger aircraft by the end of this year, most of them signed up in contracts that are mostly recession proof.

Ed Wegel: Now, working very quickly and closely to get to a breakeven and then into positive EBITDAR and fourth quarter profitability. We have tied up 20 of the most valuable aircraft in the world today, which is the A321 freighter. We will have 10 passenger aircrafts by the end of this year, most of them signed up in contracts that are mostly recession proof.

Speaker 3: Now working very quickly and closely to get to a breakeven and into a positive ebitddar and four fourth quarter profitability. We have tied up 20 of the most valuable aircraft in the world today, which is the eight three hundred and 20 one freer. We will have 10 passenger aircraft by the end of this year, most of them signed up eight contracts that are mostly recession improve.

Ed Wegel: So, despite what happens in the economy, these aircrafts will be flying and will be flying under good contracts, because they are with clients who have to fly no matter what the economic conditions are. So, in the face of all of that, this is what our management team faces is a share price that has effectively been cut in about 70% over this time period.

Speaker 2: So despite what happens in the economy, these aircraft will be flying and will be flying under good contracts because they are with clients who have to fly no matter what the economic conditions are. So, in the face of all of that, this is what our management team faces: is a share price that has effective [inaudible] and cut in about 70% over this time period.

Ed Wegel: I can tell you that we are working very hard to get the story out. We have tried in many ways with IR firms and others to get this story out is the fact that we are on the OTC and institutional investors by and large cannot invest in us yet. It's holding us back.

Speaker 2: I can tell you that we are working very hard to get this story out. We have tried in many ways with IR firms and others to get this story out: is the fact that we are on the OTC and institutional investors by and large cannot invest in us yet, it's holding on us back. We are a bit frustrated. We put this out on our website. We put it out through all of the social media and we continue to get comments that nobody knows that we're putting this information out. So we will continue to work in a positive manner to get our story out. We're working with a number of social media sites. We're working with the media companies and others to put this story out. The efforts of Howard group have been phenomenal in getting the story out. But we do get a lot of criticism over our share price. You have a management team that is performing, management team that has provided all the things that we have said that we would do, and then some, and I think that we've got some tremendous foundational elements in place now to build this airline to the 50 aircraft fleet that we project by the end of 2025.

Ed Wegel: We are a bit frustrated, we put this out on our website, we put it out through all of the social media and we continue to get comments that nobody knows that we're putting this information out. So, we will continue to work in a positive manner to get our story out.

Speaker 3: We are bit frustrated. We put this out on our website. We put it out through all of the social media and we continue to get comfidence that nobody knows that we're putting this information out. So we will continue to work in a positive manner to get our story out. We're working with a number of social media sites. We're working with the media companies and otherls to put this story out. The efforts of Howard group have been phenomenal and getting the story out.

Ed Wegel: We're working with a number of social media sites, we're working with the media companies and others to put this story out. The efforts of Howard Group have been phenomenal in getting the story out, but we do get a lot of criticism over our share price. You have a management team that is performing. You have a management team that has provided all the things that we have said that we would do and then some and I think that we've got some tremendous foundational elements in place now to build this airline to the 50 aircraft fleet that we project by the end of 2025.

Speaker 2: But we do get a lot of criticism over our share price. You have a management team that is performing, management team that has provided all the things that we have said that we would do, and then some, and I think that we've got some tremendous foundational elements in place now to build this airline to the 50 aircraft fleet that we project by the end of 2020. -five.

Speaker 3: But we do get a lot of criticism over our share price. You have a management team that is performing, management team that has provided all the things that we have said that we would do, and then some, and I think that we've got some tremendous foundational elements in place now to build this airline to the 50 aircraft fleet that we project by the end of 2020. -five.

Ed Wegel: Just want to leave you with the comments again that we are doing everything we can to get this story out. We have been through probably four or five IR firms in Canada and the U.S., PR agencies, social media, and so forth. And we will continue to do that until we can finally break through and people understand the power of this company and the strength of our story.

Speaker 2: Just want to leave you with the comment again that we are doing everything we can to get this story out. We have been through probably four or five IR firms in Canada and the US, PR agency, social media and so forth, and we will continue to do that until we can finally breakthrough and people understand the power of this company and the strength of our story. And so with that, Grant, I'll turn it over to you. We'll take any questions that are appropriate. 

Speaker 6: Pr agency, social media and so forth, and we will continue to do that until we can finally breakthrough and people understand the power of this company and the strength of our story.

Ed Wegel: So, with that Grant, I'll turn it over to you. We'll take any questions that are appropriate.

Operator: Thank you, Ryan. And folks, just a reminder that if you want to submit questions, at the bottom of the screen is the Q&A button. Please submit it on that. And while we're waiting for those questions to come in, just a couple of comments on the presentation, running the numbers on your gross margin where you're doing $1 million, we talking about gross margin of $1.5 million to $2.2 million annualized for the passengers and $4.2 million to $5.5 million on the cargo. If you annualize Q4, the numbers I'm getting is that your gross margin, of course, that's gross margin would be $27.6 million to $38.5 million and for the Canadians, please remember, all the numbers here are U.S.

Speaker 8: Folks just a relier if we do us some bit questions.

Speaker 1: The bottom of the screen is's a que and a button. Please submit on that. And while we're waiting for those questions to come in, just a couple of comments on the presentation I' running. The numbers is on your gross margin. Where you're doing a million, we talking about gross margin of one point five to two point two annualize for the passengers and the four point two to five point five million on the cargo if you annualize Q4. The numbers I'm getting is but your gross margin. Of course. That's gross margin would be 27.6, 38.5 million and for the Canadians. Please remember all the numbers. Here are U S.

Speaker 4: Thank you [inaudible] and folks, just a reminder, if you do want to submit questions at the bottom of the screen is a Q&A button, please submit on that. And while we're waiting for those questions to come in, just a couple of comments on the presentation. Running the numbers on your gross margin where you're doing a million, you're talking about gross margin of one point five to 2.2 annualize for the passengers and the four point two to five point five million on the cargo, if you annualize Q4, the numbers I'm getting is that your gross margin, of course that's gross margin would be 27.6 to 38.5 million and for the Canadians, please remember, all the numbers here are US. So if you look at a 90 million US base case, the gross margin going profitable this year, can you please send me information on any other company, on a junior Canadian exchanges that went from zero to over 100 million Canadian in just over a year, and is throwing up these types of numbers and the track to future growth is as clear as it gets. Again, we got a goofy market and people are selling out of fear and they're not looking at the fundamentals. I keep parking on the stock, I keep buying and I will continue to do so because this is as clear as it gets. So with that, I can stop ranting, and we are getting some questions in now. Again, we got a goofy market and people are selling out of fear and they're not looking at the fundamentals. I keep parking on the stock, I keep buying and I will continue to do so because this is as clear as it gets. So with that, I can stop ranting, and we are getting some questions in now.

Operator: So, if you look at a $90 million base case, the gross margin going profitable this year. Can you please send me information on any other company on a junior Canadian exchange that went from zero to over CAD100 million in just over a year, and it's throwing out these types of numbers and the track to future growth is as clear as it gets? Again, we got to goofy market and people are selling out of fear and they're not looking at the fundamentals. I keep harping on the stock, I keep buying and I will continue to do so because this is as clear as it gets. So, with that, I will stop ranting and we are getting some questions in now.

Speaker 1: The gross margin.

Speaker 1: Going profitable this year.

Speaker 9: Can you please send me information on any other company on a junior Canadian exchangemes that went from zero to over one million Canadian and just over year and it throwing up these types of numbers and the track to future growth?

Speaker 6: Going profitable this yearcan you please send me information on any other company on a junior Canadian exchangees that went from zero to over one million Canadian and just over a year, and is throwing up these types of numbers and the track to future growth?

Speaker 8: This is clear as it gets again. We got a gooy market and people are selling out a fear and they're not looking at the fundamentals. I keep parking on the stock, I keep buying and I will continue to do so because this is as clear as it gets. So with that, I would stop renting, and we are getting some questions in now.

Speaker 6: Again, we got a goofy market and people are selling out of fear and they're not looking at the fundamentals. I keep parking on the stock, I keep buying and I will continue to do so because this is as clear as it gets. So with that, I can stop ranting, and we are getting some questions in now.

Operator: So, the first one is from Ian McQueen says to date your operating margins are negative, which is no surprise given that you are building the business. In Q1 2022, costs were 129% of revenues with the big contributors being salaries, wages, and benefits of 32% of revenue, fuel pass through 20% contracted ground and aviation services at 18%, aircraft rent at 21% and other costs at 14%. If we look to 2023 plus, where do you expect operating margins to be? And what do you expect run rate costs as a percentage of revenue to be for the categories mentioned above?

Speaker 4: So the first one is from [inaudible] McQueen. It says: to date, your operating margins are negative, which is no surprise given that you are building the business. In Q1 2022 costs were 129% of revenues with the big contributors being salaries, wages, and benefits of 32% of revenue. Fuel pass through 20% contracted ground and aviation services at 18%, aircraft rents of 21%, and other costs at 14%. If we look to 2023 plus, where do you expect operating margins to be and what do you expect run-rate costs as the percentage of revenue to be for the categories mentioned above?

Speaker 1: In Q1 22, costs were one hundred 20. nine percent of revenues, with the big contributors being salary wages and benefits at 32% of revenue. Fuel will pass through 20%, contracted ground and aviation services at 18%, aircraft RS 21% and other costs at 14%. If we look to 20, 23 plus.

Speaker 6: In Q1 22 costs were one hundred 20. nine percent of revenues, with the big contributors being salies, wages and benefits of 32% of revenue. Fuel pass through 20%, contracted ground and aviation services at 18%, airraft rens of 21% and other costs at 14%. If we look to 20, 23 plus.

Speaker 1: Where do you expect operating margins to be and what do you expect run rate costs as the percentage of revenue to be for the categories mentioned above?

Speaker 6: Where do you expect operating margins to be and what do you expect run rate costs as the percentage of revenue to be for the categories mentioned above?

Ryan Goepel: Thanks. You want me to do that one? I think one of the tough parts about -- I think the best guidance we can give is what we talked about on a per aircraft basis and then amount of overhead to maintain it. One of four example on aircraft fuel, right? If we do a full contract that cost is included, if we do an ACMI contract, it's not. So, as our mix changes of how much is ACMI versus full contract, that as a percentage of revenue will change. So, we have a projected gross margin or put that out yet. I figured we start with unit economics and then we'll build up to a macro model over the subsequent calls.

Speaker 1: Thanks, I'll do that one. I think one of the tough parts about-- I think the best guidance we can give is what we talked about on per aircraft basis and then the amount of overhead to maintain it. For example: an aircraft fuel right, if we do a full contract for that cost is included, if we do an ACMI contract, it's not. So as our mix changes of how much is ACMI versus full contract, that as a percentage of revenue will change. So we haven't projected gross margin or put that out yet, I figured we'd start with unit economics and then we'll build up to a macro model over the subsequent calls.

Operator: What is your current cash position and the monthly burn rate?

Speaker 1: What is your currenic cash position and the monthly burn Y?

Ryan Goepel: I believe in Q1, we ended with over $11 million was on the balance sheet and our burn rate is getting -- is shrinking. I think it's below $1 million through the course of -- through the year and then it gets to cashflow positive in Q3, Q4. So, burn rate is becoming something that's not as something we -- it's not a burn anymore. It's going to be accretive.

Multiple speakers: What is your current cash position and the monthly burn rate. I believe in Q1, when we ended it was over 11 million on the balance sheet in. Our burn rate is shrinking- I think it's below a million through the course of the year and then it gets to cash flow positive in Q3-Q4. So burn rate is becoming something that's is not a burn anymore, it's going to be accretive.

Multiple speakers: [Operator] Chris Moffat asks why was in 627 park for a few weeks? [Ryan Goepel] That was actually parked, doing a C check. So, every 18 months, aircrafts have to go through -- or two years they have to go through a two-year check. They take between 14 and 18 days. So, 627 was at an MRO facility being overhauled. Right now 626 is there and then 276 will follow straight after. So, we have three aircraft that are going through what we call C checks or two-year checks. So, that's why it was there.

Multiple speakers: Chris [inaudible] had asked why was 627 parked for a few weeks? That was actually parked because we're doing a C-check. So every 18 months or two years aircraft have to go through a two-year check. They take between 14 and 18 days. So 627 was at an amaro facility being overhauled. Right now, 626 is there and then 276 will follow straight after. So we have three aircraft that are going through what is called C-checks or two-year checks, so that's why it was there.

Operator: John Chamberlin quite serious, do we have a dedicated PIO for the company? I don't know if that's Public Information Officer or what. Are there any thoughts on having that in place? In my experience, the PR firms only respond to colors.  

Speaker 4: John Chamberlain, quite curious says: do we have a dedicated PIO for the company? I don't know if that's Public Information Officer but are there any thoughts on having that in place? In my experience, the PR firms only respond to [inaudible].

Ed Wegel: We have -- Ryan and I effectively serve as the Public Information Officers. Our CMO, Mark Salvador primarily is the primary senior officer overseeing our social media sites, our website, and so forth. So, we maintain a very lean senior management team here. In the face of the fact that we can't -- or we won't be able to move up of the OTC and move up to NASDAQ or the New York Stock Exchange until we raise some additional capital and get profitable. No matter what we do and I will say -- I will underline that, no matter what we do, no matter what we say, no matter what we do in a press release, the negativity about what we say or what we do is prevalent.

Speaker 2: Ryan and I effectively serve as the Public Information Officer, but our CMO Mark Salvador is the Primary Senior Officer, overseeing our social media sites, our website, and so forth. So we maintain a very lean senior management team here in the face of the fact that we won't be able to move up the OTC and move up to NASDAQ or this New York Stock Exchange until we raise some additional capital and get profitable. No matter what we we do--and I will underline that--no matter what we do, no matter what we say, no matter what we do in a press release, the negativity about what we say, what we do is prevalent, I guess, because no one in Canada has seen an actual airline like this: as you say Grant, operating on a junior exchange and actually do what they say that they're going to do.

Speaker 2: Senior management team here in the face of the fact that we CAn't, we won't FA able to move BU the OTC and move up to NASDAQ or this new York stock exchange.

Speaker 3: Senior management team here in the face of other fact that we CAn't, we WOn't FA able to move up the ottc and move up to NASDAQ or this new York Stock Exchange.

Speaker 2: Until we raise some additional capital and get profitable, no matter what we we do- and I will say, I'll underline that- no matterwhat we do, nomat what we say, nomatter what we do in a press release.

Speaker 3: Until we raise some additional capital and get profitable, no matter what we we do- and I will say, I'll underline that- no matter what we do, no matter what we say, nomatter what we do in a press release.

Speaker 6: The negativity about what we say or what we do is prevalent.

Ed Wegel: I  guess, because no one in Canada has seen an actual airline like this, as you say, Grant, operate on a junior exchange and actually do what they say that they're going to do.

Speaker 3: The negativity about what we say, what we do, is prevalent, I guess, because no one in Canada has seen an actual airline like this: as you say grant, operate on a junior exchange and actually do what they say that they're going to do.

Ed Wegel: But we put out on LinkedIn, on Twitter, on Facebook, on our webpages through press releases, we put out all of the information that anyone needs to determine whether they want to invest in this company. We are public, which means they can pull all of our public documents off of the free SEC website. So, there is plenty of opportunity and plenty of ways for anyone to access information about us. A PIO would just merely put out more press releases, we found them to be of limited value, frankly. So, what we have decided to do is that we are going to outperform every other airline like us in the market and eventually someone will notice.

Speaker 6: Through a press releases, we put out all of the information that anyone needs to determine whether they want to invest in this company. We are public, which means they can pull all of our public documents offered the free SEC website. So there is plenty of opportunity and plenty of ways for anyone to access information about us P? O which certainlywere just.

Speaker 2: But we put out on LinkedIn, on Twitter, Facebook, on our web pages, through a press release we put out all of the information that anyone needs to determine whether they want to invest in this company. We are public, which means they can pull all of our public documents off of the free SEC website. So there is plenty of opportunity and plenty of ways for anyone to access information about us. A PIO would just merely put out more press releases. We found them to be of limited value, frankly. So what we have decided to do is that we are going to outperform every other airline like us in the market, and eventually someone will notice. And it won't be because of a press release or a tweet or a post on LinkedIn, it will be because someone will wake up and say, "My Lord, they have 20 of these craters or something. My Lord, they have 10 passenger aircraft. Look at the contracts that they have." Someone will eventually wake up and pass the word on this. We've tried everything, nothing works. We will continue in a positive way to do that, but until some people start to wake up and understand what we have here- and not just read our press release, but understand what's in the press release- we're not going to get any movement.

Speaker 3: Through a press releases we put out all of the information that anyone needs to determine whether they want to invest. In this company we are public which means they can pull all of our public documents offfeof the free SEC website. So there is plenty of opportunity and plenty of ways for anyone to access information about us PO which certainre just.

Speaker 6: Merely put out more press releases. We found them to be of limited value, frankly. So what we have decided to do is that we are going to outperform every other airline like us in the market, and eventually someone will notice.

Speaker 3: Merely put out more press releases. We found them to be of limited value, frankly. So what we have decided to do is that we are going to outperform every other airline like us in the market, and eventually someone will notice.

Ed Wegel: And it won't be because of a press release or a Tweet, or a post on LinkedIn, it will be because someone will wake up and say, My Lord, they have 20 of these freighters coming, My Lord, they have 10 passenger aircraft, look at the contracts that they have, someone will eventually wake up and pass the word on this. We've tried everything, nothing works, we will continue in a positive way to do that.

Speaker 2: For a post on link in. It will be because someone will wake up and say, my Lord, they have 20 of these freighers. sto, my Lord, they have 10 passenger aircraft. Look at the contracts that they have. Someone will eventually wake up and pass the word on this. Who've tried everything, nothing works. We will continue in a positive way to do that.

Speaker 3: And it WOn't be because of a press release or a tweet for a post on link in. It will be because someone will wake up and say, my LORD, they have 20 of these freigh or something. My LORD, they have 10 passenger aircraft. Look at the contracts that they have. Someone will eventually wake up and pass the word on this. We've tried everything. Nothing works. We will continue in a positive way to do that.

Ed Wegel: But until some people start to wake up and understand what we have here and not just read our press release, but understand what's in the press release, we're not going to get any movement.

Speaker 3: But until some people start to wake up and understand what we have here- and not just read our press release, but understand what's in the press release- we're not going to get any movement.

Speaker 2: We're not going to get any rthem.

Operator: They're certainly NASDAQ, do you still believe you'll be able to uplift by the end of the year? And do we still need a minimum bid of $2 US?

Speaker 7: 30 azddeq. You still believe you'll be able to uplift by the end of the year, and do we still need a minimum bit of $2 U S?

Multiple speakers: Concerning NASDAQ, do you still believe you'll be able to outlist by the end of the year, and do we still need a minimum bid of $2 US? So I think we've said our line on NASDAQ or MYC is always have positive earnings and multiple quarters of revenue growth, have cargo on the cargo active and under contract to generating revenue.

Speaker 6: thirning NASDAQ. You still believe you'll be able to outlistft by the end of the year and do we still need a minidim bit of $2 U's? So I think we've said our line on NASDAQ or myc is always have positive, positive earnings and multiple, multiple quarters of revenue growth. Have cargo on the cargo active and under contracted, generating revenue.

Ryan Goepel: So, I think we've said our line on NASDAQ or NYSE is always to have positive earnings and multiple quarters of revenue growth, have cargo on the cargo active and under contract to generating revenue.

Ryan Goepel: I think when you see that, we would hope that the share price would reflect it and we can address it there. So, I think, external factors are external factors. And obviously there's some frustration on how that impacts us.

Speaker 1: I think when you see that we would hope that the share price would be reflected and we can address it there. So I think external factors are external factors and obviously, there's some frustration on how that impacts us. But on the same token, we can control what we do here and what we perform and I think with that performance it will take care of itself in the sense of eventually the comps and the comparisons will sort itself out. So we just need to keep delivering revenue, deliver the 90-plus million, deliver three cargo aircraft by the end of the year, 10 passenger, and $200 million in contracts or more- and we believe the share price will reflect it and make the up plus and create simple process.

Ryan Goepel: But on the same token, we can control what we do here and what we perform. And I think with that performance, it will take care of itself in the sense of eventually the comps and the comparisons and all will sort itself out. So, we just need to keep delivering the revenue, deliver the $90 plus million, deliver three cargo aircraft by the end of the year, 10 passenger, and $200 million in contracts and more. And we believe the share price will reflect it and make the up-listing pretty simple process.

Speaker 5: But on the same token, we can control what we do here and what we perform and I think with that performance it will take care of itself in the sense of eventually the comps and the comparisons will sort itself out. So we just need to keep delivering revenue, deliver the 90-plus million, deliver three cargo aircraft by the end of the year, 10 passenger, and $200 million in contracts or more- and we believe the share price will reflect it and make the up plus and create simple process.

Ed Wegel: Yes, we have said until we're blue in the face that we are not affected by the oil price or largely not affected by it because our clients pay that. And most of our clients have to fly. So, they will pay that. no matter how many times we say that when oil goes up, our stock price goes down because people panic. So, it's an airline and they're affected by oil prices. Despite the fact that we've said it 73 times, they still don't get it. So, if someone has an idea or suggestion for how we can say that the 74th time and get through to anyone, we would love to have that suggestion.

Speaker 2: Because our clients say that and most of our clients.

Speaker 2: Yes, we have said until we're blue in the face that we are not affected by the oil price. We are largely not affected by it, because our clients pay that and most of our clients have to fly, so they will pay that. No matter how many times we say that when oil goes up, our stock price goes down because people panic, "Oh, it's an airline and they're affected by oil price." Despite the fact that we've said in 73X, they still don't get it. So if someone has an idea or suggestion for how we can say that the 74th time and get through to anyone, we would love to have that suggestion.

Speaker 2: Have to fly. So they will pay that no MAT heavmany times we say that when oil goes up our stock price goes down because people panic. So it's an airline and they're affected by oil price. Despite the fact that we've said in 73 times.

Speaker 3: Have to fly, So they will pay that in matter. heavmany times we say that when oil goes up, our stock price goes down because people paned, So it's an airline and they're affected by oil price. Despite the fact that we've said in 73 X, they still don't get. So if someone has as an idea of suggestion for how we can say that the 74 time and get through to anyone, we would love to have that suggestion.

Speaker 2: They still don't get. So if someone has as an idea of suggestion for how we can say that to seventy-fourth time and get through to anyone, we would love to have that suggestion.

Speaker 3: Despite the fact that we've said in 73 X, they still don't get. So if someone has as an idea of suggestion for how we can say that the 74 time and get through to anyone, we would love to have that suggestion.

Operator: Then one or two more questions on an up-list. From Chris Moffat, how does GlobalX retain its pilots and staff and keep them from moving to other airlines after training?

Speaker 1: Men 1, two more questions on an uplilist.

Speaker 1: From Chris mopt how his global experttain its pilots and staff and keep them from moving to other airlines after training.

Speaker 4: We have two more questions on an uplist from Chris [inaudible], how does global experts sustain its pilots and staff and keep them from moving to other airlines after training. 

Speaker 8: From Chris mopt, have his global extrtain its pilots and staff and keep them from moving to other airlines after training. Well, it's quite simple. We take very good care of them.

Ed Wegel: Well, it's quite simple. We take very good care of them. The pilots that we're getting, particularly those in the left seat are coming to us with 10,000 to 12,000 to 15,000 hours of pilot in command time. They're coming out of the Middle East, where they've flown for a number of years. They're coming out of Asia, they're coming out of China, even some coming out of Latin America. They want to live in Miami, they want this kind of lifestyle. They don't, at their age, they don't want to go to the majors because they'll be in the right seat and they'll be unreserved for the next 10 years. So, they want to come to us.

Speaker 2: They fil that we're getting, particularly those- those in the left seat are coming to us with.

Speaker 2: 10 to 12 to 15 thousand hours of pilo commands on. They're coming out of the Middle East.

Speaker 2: Well, it's quite simple, we take very good care of them. The pilots that we're getting, particularly those in the left seat are coming to us with 10 to 12 to 15 thousand hours of piloting commands. They're coming out of the Middle East where they've flown for a number of years. They're coming out of Asia, they're coming out of China, even some coming out of Latin America. They want to live in Miami. They want this kind of lifestyle. At their age, they don't want to go to the majors because they'll be in the right seats and they'll be on reserve for the next 10 years, so they want to come to us. Our wages are comparable, in fact they're exactly the same as what Allegion pays. Allegion has 160 airplanes and we have six, and we pay the same rates as Allegion does. We take good care of our people. We've got a 401-K, we've stock purchase plans. We talk to our people, we've taken them to lunch, we've taken them to dinner. We make them feel like they're part of the family here and we are having a growing number of captains who are bring some of their former colleagues from overseas to work with us and others. So we feel very, very good about our pilot group. We've got less attrition on a percentage basis than just about any airline out there that I've spoken to. And so we take our people seriously, we take our culture seriously, and we've created a work environment where they want to stay even though they might make more money at one of the USCS or a major, they want to be here because of the quality of life.

Speaker 2: Where they've flown for a number of years that coming out of Asia they coming out of China even some coming out of Latin America they want to live in Miami. They want this kind of lifestyle. They don't at their age. They don't want to go to the majors because.

Speaker 3: 10 to 12 to 15 thousand hours of pilo commands on. They're coming out of the Middle East.

Speaker 3: Where they've flown for a number of years that coming out of Asia they're coming out of China. Even some coming out of Latin America they want to live in Miami. They want this kind of lifestyle. They don't at their age. They don't want to go to the majors because.

Speaker 2: They'll be in the right seat and they'll be on reserve for the next 10 years, So they want to comeund to us.

Ed Wegel: Our wages are comparable. In fact, they're exactly the same as what Allegiant pays. Allegiant has 160 airplanes and we have six, and we pay the same rates as Allegiant does. We take good care of our people. We've got a 401(K). We've got the employee stock purchase plans.

Speaker 3: They'll be in the right seats and they'll be onunreserve for the next 10 years. So they want to come to us.

Speaker 3: Our wages are comparable, that they're exactly the same as what allegiion pay. allegiion has 160 airplanes and we have six.

Speaker 2: And we pay the same rates as Le of does we take good care of our people. We've got a four one-k. we've got deployee stock purchase plans.

Speaker 3: And we pay the same rates as LE of does we a good care of our people? We've got a four one-k. we've got the voice stock purchase plans.

Ed Wegel: We've talked to our people, we take them to lunch, we take them to dinner. We make them feel like they're part of the family here. And we are having a growing number of captains who are bringing some of their former colleagues from overseas to work with us and others. So, we feel very, very good about our pilot group. We've had less attrition on a percentage basis than just about any airline out there that I've spoken to.

Speaker 3: We talk to our people, we've taken them to lunch, we've taken them to dinner. We make them feel like they're part of the family here and we are having a growing number of captains who are bring some of their former colleagues from overseas to work with us and others. So we feel very, very good about our pilot group. We've got less attrition on a percentage basis than just about any airline out there that I've spoken to. And so we take our people seriously, we take our culture seriously, and we've created a work environment where they want to stay even though they might make more money at one of the USCS or a major, they want to be here because of the quality of life.

Ed Wegel: And so we take our people seriously. We take our culture seriously. And we've created a work environment where they want to stay, even though they might make more money at one of the ULCCs or major, they want to be here because of quality of life.

Speaker 1: And so we take our people seriously, we take our culture seriously, and we've created a work environment where they want to stay.

Speaker 6: Even though they might make more money at more the ulcs or a major.

Speaker 6: They want to be here because of quality of life.

Speaker 3: Even though they might make more money at one the CS or a major, they want to be here because of quality of life.

Operator: Chris Moffat again. When are you planning on breaking ground on the proposed Fort Lauderdale hangars/office?

Speaker 4: Chris [inaudible] again, when are you planning on breaking ground on the proposed Fort Lauderdale hanger slash profits?

Ed Wegel: We expect to have we expect to have final approval from the Broward County Aviation Department by late June, early July.

Speaker 14: We expect to have. We expect to have final apglobal.

Speaker 2: We expect to have final approval from the Broward County Aviation Department by late June, early July. We have to do the final design which is in process now for the building and determine how much office space and perhaps training space we want to put there. And then, depending upon how much preparatory work needs to be done in terms of mitigation of the land, we expect right now to break ground sometime in the third quarter of this year.

Speaker 2: From the broward county aviation Department by late June , early July .

Ed Wegel: We've got to do the final design, which is in process now for the building and determine how much office space and perhaps training space we want to put there.

Speaker 1: From the Broward County aviation Department by late June , early July . We kind of do the final design which is in process now for the building and determine how much office space and perhaps training space we want to put there and then, depending upon how much preparatory work needs to be done in terms of mitigation of the land, we expect right now to breakground sometime at the third quarter of this year.

Ed Wegel: And then depending upon how much preparatory work needs to be done in terms of mitigation of the land, we expect right now to break ground sometime in the third quarter of this year.

Speaker 2: We expect right now to breakound sometime at the third quarter of this year.

Ed Wegel: It's fully finance and just barring the final regulatory approvals and the mitigation of any environmental issues, which we think will be minimal, we'll be ready to go and break ground.

Speaker 6: And the mitigation of any environmental issues, which we think will be minimal, will be ready to go and break GR.

Multiple speakers: It's fully financed and just barring the final regulatory approvals and the mitigation of any environmental issues, which we think will be minimal, we'll be ready to go and break ground. Question anonymous about Flugi, if there are any updates on that by the year. Flugi is the travel platform we call a very Tri direct travel company. We had announced our agreement with Solo House. We've done one trial, we did one event with them. We're working a schedule to book four or five more. The next steps for the platform have been effectively built out. We're working on putting the resources together to grow a customer base and look to what we can do to monetize it. So we really wanted to get it to a group of concepts, which we believe we've done. We wanted to get technology to a platform where it's usable, which we've done. We wanted to do some test flights, which we've done, and now the next part is in Q3 we're looking to expand beyond one customer and work to all their groups and then hopefully get to a point where we're doing 10 to 15 flights a month through Flugi.

Operator: Question from anonymous about Flugy, if there are any updates on that idea?

Ryan Goepel: So, Flugy is the platform, the travel platform, we call it's a very direct travel company. We had announced our agreement with Soho House, we've done one trial, we did one event with them, we're working to schedule four or five more. The next steps, the platform has been effectively built out. We're working on putting the resources together to grow the customer base and see what we can do to monetize it. So, we really wanted to get to a proof-of-concept, which we believe we've done, we want to get technology to a platform where it's usable, which we've done, we wanted to do some test flights, which we've done. And now the next part is in Q3, we're looking to expand it to beyond one customer and worked out all their groups and then hopefully get to the point where we're doing 10 to 15 flights a month through Flugy.

Speaker 8: From anonymous about flu, if there are any updates on that by the yearso. Flu is the platform, the travel platform we call. It's a very Tri direct travel company we had announced our agreement with so whole house. We've done trial. We did one event with them. We're working a schedule book four or five more. The next steps of the platform has been effectively built out, whichwe're working on: putting the resources together to grow a customer base and look to what we can do to monetize. So we really want toget to group of concepts, which we believeave we've done. We wanted getto noogy, to a plform- it's usable- which we'vedone. Wanted to do some test flights, which we've done, and now the next part is in q-3 were looking to expand, expand it to beyond one customer and work to all their groups and then hopefully get to a point where we're doing 10 to 15 flights through foodving.

Ed Wegel: So, we've got one strategic partner now, as Ryan said, with Soho House, which is a great brand to partner with. We're looking for other strategic partners, we started to talk to some of the OTAs, the online travel agencies, some of the conglomerates that own a number of online travel agencies. And let me say that we were getting some very interesting responses and proposals on working with them along with Flugy.

Speaker 2: So we've got one strategic partner now as Ryan said with Soho House which is a great brand to partner with. We're looking for other strategic partners. We've started to talk to some of the OTA's, the online travel agencies, some of the conglomerates that owned a number of online travel agencies and let me say that we're getting some very interesting responses and proposals on working with them along with Flugi.

Ed Wegel: We're primarily -- we are a charter airline, running an OTA or online travel agency which effectively is not our core business. We do want to maintain a piece of this business. We think that we can monetize a piece of this business and get all the capital we need to grow that particular division of our company into a major player in the online travel space.

Speaker 2: We're primarily a chartered airline running an OTA or online travel agency, which effectively is not our core business. We do want to maintain a piece of this business. We think that we can monetize a piece of this business and get all the capital we'd need to grow that particular division of our company into a major player in the online travel space.

Operator: Kenneth C is asking about the eVTOLs, that's the vertical take vertical takeoff vehicles, the LOI announcement is exciting. The vehicles look incredible, especially the below normal side, but to what degree does CargoX plan to utilize these? Could you provide a little more insight and then he says incredible work from the team so far.

Speaker 4: And Makenna C. is asking about the [inaudible] that's the vertical takeoff vehicle. The LOI announcement is exciting, the vehicles look incredible especially, even glowing on the side, but to what the degree does cargo X plan to utilize these? Could you provide a little more insight on them? He says incredible work from the team so far.

Ed Wegel: Yes, the eVTOL concept is something that we wanted to be involved in early on. There's a number of players out there, designing and building and manufacturing the eVTOL aircraft. We selected Eve because it is a division of Embraer. Embraer is a major aircraft, original equipment manufacturer or OEM. They've got tremendous experience in building airplanes. They don't build airplanes in their garage, they build them in real facilities. They've got real engineers and they've got real money behind them. They've just gone public. Eve has gone public with a $600 million stack and is got a great valuation. We believe that is the right eVTOL application for Miami-Dade and Broward County. We intend to use that aircraft in a number of ways to move passengers from off of our charter flights to Port Miami where they can get on cruise ships or of Miami Airport or Fort Lauderdale Airport to go down into the Keys the West style of Arata and so forth, that's a perfect application for this big old aircraft. As well we can move our crews back and forth between the airports in South Florida and we're going to be doing more and more flights out of Fort Lauderdale, Palm Beach, even over on the Westcoast of Florida, Sarasota and Fort Myers. So, this aircraft by the time it is fully developed and manufactured and certified in 2026, will have the range with its batteries for us to be able to do that. So -- and we're working now with Miami-Dade County on developing a eVTOL plan. We also have partnered now with [indiscernible], which is a worldwide expert in construction of airports and heliports and the sorts of facilities that are needed for this type aircraft. So, we wanted to get in early, make sure we had an order position for these aircraft. The aircraft won't be delivered for another four years. We serve on the advisory board for Eve. We've been giving them our thoughts on how the aircraft to be used here in Miami-Dade, working with Miami-Dade County government as well. Looking where we can build heliports or V-ports as they're called, all the way down to Key West so that we can provide to our clients who want to fly into South Florida and additional service which is to put some of their best customers on these eVTOL aircraft to get to cruise ships, to get to destination spots in the Keys, to get to their hotels on Brickell or on Miami Beach, or all the way up to Fort Lauderdale. So, it is an absolute extension of the service that we currently provide to our clients, absolute extension of what we do at GlobalX.

Speaker 6: There's a number of players out there designing and building and manufacturing the be toll aircraft. We selected Eve because it is a division of embror andembr is a major aircraft original equipment manufacturer, or OEM. They've got tremendous experience in building airplanes. They don't build airplanes in their garage, they ve build them in real facilities. They've got real engineers and they've got real money behind them. They're just G public. Eve has got public with a $6 million factack and it's got a great valuation. We believe that is the D right E B toldll application for Miami day and per hour county. We intend to use that aircraft in a number of ways to move passengers from of our charter flights to port Miami, where they can get on cruise ships, or of Miami airport or orderdale airport to go down into the keys.

Speaker 1: The EV TOL concept is something that we wanted to be involved in early on. There are a number of players out there designing and building and manufacturing the EV TOL aircraft. We selected Eve because it is a division of EMBRER. EMBRER is a major aircraft original equipment manufacturer or OEM. They've got tremendous experience in building airplanes. They don't build airplanes in their garage, they build them in real facilities. They've got real engineers and they've got real money behind them. Eve has gone public with a $600 million stack and it's got a great valuation. We believe that is the right EV TOL application for Miami day and how Howard County. We intend to use that aircraft in a number of ways to move passengers from off of our charter flights to port Miami where they can get on cruise ships or have Miami airport or Fort Lauderdale Airport to go down into the keys to the west side style of [inaudible] and so forth. That's a perfect application for this EV TOL aircraft as well, we can move our cruise back and forth between the airports in South Florida and we're going to be doing more and more flights out of Fort Lauderdale, Palm Beach, even over on the West Coast of Florida, Sarasota Port buyers. So this aircraft, by the time it is fully developed and manufactured and certified in 2026, we'll have the range with its batteries for us to be able to do that. And we're working now with Miami County and developing EV TOL plan. We also have [inaudible], which is a worldwide expert in construction of airports and [inaudible] ports and the sorts of facilities that are needed for this type of aircraft. So we wanted to get in early, make sure we had an order position for these aircraft.

Ed Wegel: the West style of Arata and so forth, that's a perfect application for this big old aircraft. As well we can move our crews back and forth between the airports in South Florida and we're going to be doing more and more flights out of Fort Lauderdale, Palm Beach, even over on the Westcoast of Florida, Sarasota and Fort Myers. So, this aircraft by the time it is fully developed and manufactured and certified in 2026, will have the range with its batteries for us to be able to do that. So -- and we're working now with Miami-Dade County on developing a eVTOL plan. We also have partnered now with [indiscernible], which is a worldwide expert in construction of airports and heliports and the sorts of facilities that are needed for this type aircraft. So, we wanted to get in early, make sure we had an order position for these aircraft. The aircraft won't be delivered for another four years. We serve on the advisory board for Eve. We've been giving them our thoughts on how the aircraft to be used here in Miami-Dade, working with Miami-Dade County government as well. Looking where we can build heliports or V-ports as they're called, all the way down to Key West so that we can provide to our clients who want to fly into South Florida and additional service which is to put some of their best customers on these eVTOL aircraft to get to cruise ships, to get to destination spots in the Keys, to get to their hotels on Brickell or on Miami Beach, or all the way up to Fort Lauderdale. So, it is an absolute extension of the service that we currently provide to our clients, absolute extension of what we do at GlobalX.

Speaker 3: Or have Miami airport or orderdale airport to go down into the keys te EST style of irana And so port. That's a perfect application for this seat oal aircraft as well. We can move our crus back in forth between the airports in South Florida and we're going to be doing more or more flights out of waterderdale on each, even over on the West Coast of Florida, Sarasota port buyers. So this aircraft, by the time it is fully developed and manufactured and certified in 2026, we'll have the range with its batteries for us to be able to do that. So and we're working now with Miami County and developing a e toll plan. We also have farner now for ov, which is a worldwide expert in construction of airports and hell ports and the sorts of facilities that are needed for this type aircraft. So we wanted to get in early, make sure we had an order position for these, these aircraft.

Speaker 3: The aircraft won to deliver for another four years but we we serve on the advisory Board. For Eve. We've been giving them our thoughts on how the aircraft to be used. Ser Mami day working with Miami day County government as well looking where we can build hell of fors or the fors. They're called the way to have the Q 's. So that we can provide to our clients what to fly into South Florida. An additional service which is to put some of their best customers on these e to all aircraft to get cruise ships to get to destination spots in the keys to get to their hotels on brickle or on Miami Beach or all the way up to Fort waterderdale. So it is an absolute extension of the service that we currently provide to our clients absolute extension of what we do global xquestions on n there. On the the e planes which has just been answered and from actual wrong is there possibility or are you considering participating in conferences such. In an official advisory Board capacity. We believe that she'll be able to help us to get into some of the conferences where we'll be punching well above- well above our weight, because we're still a small airline and we don't get inv into those kind of conferences. We believe that she'll open up those doors and we know that we'll be in some of those conferences later this year.

Operator: Questions on NASDAQ on the Eve planes which has just been answered and from Axel Braun. Is there a possibility or are you considering participating in conferences such as Wolfe Global Transportation & Industrials Conference this year?

Ryan Goepel: So, we are in conversations about that. I've done two conferences in the last month. So, we are participating in conferences. We are talking to Wolfe and some of the other brokers about participating in that. I think part of that is us getting to the size that we're getting to, we're getting on the radars and so we are going to be active in the conference community.

Ryan Goepel: One of the things that we'll be announcing soon to take the thunder away from this release is the senior airline analyst at Cowen & Company who's done a number of broadcasts with us, Helane Becker, who is one of the top ranked airline analysts on Wall Street is going to be joining the Advisory Board of GlobalX here shortly. And we anticipate that she'll join the full Board when she retires fully from Cowen in about the next year. Helane has been a great supporter of ours, has opened a number of doors for us on Wall Street. And now in an official Advisory Board capacity, we believe that she'll be able to help us to get into some of the conferences where we will be punching well above our weight because we're still a small airline and we don't get invited to those kinds of conferences. We believe that she'll open up those doors and we know that we'll be in some of those conferences later this year.

Speaker 2: On Wall Street is going to be joining the advisory Board of global next year shortly and we anticipate that she'll join the full Board. What she retires fully from cowan in the next year. ene has been a great supporter of ours, has opened a number of doors for us on Wall Street and now in an official advisory board capacity. We believe that she'll be able to help us to get into some of the conferences where we'll be punching well above- well above our weight because we're still a small airline and we don't get INV to those kind of conferences. We believe she'll open up those doors and we know that we'll be in some of those conferences later this year.

Speaker 3: In an official advisory Board capacity. We believe that she'll be able to help us to get into some of the conferences where we'll be punching well above- well above our weight, because we're still a small airline and we don't get inv into those kind of conferences. We believe that she'll open up those doors and we know that we'll be in some of those conferences later this year.

Operator: Some email questions from Mike Roberts. I think all of them had been addressed except for how was the ground handling business progressing?

Speaker 3: Some email questions for Mike Roberts. I think all of them have been addressed, except for.

Speaker 1: How is the ground handling business progressing?

Speaker 8: Some email questions for Mike Roberts senic. All of them have been addressed, except for.

Ed Wegel: Yes, so we currently sell-perform here at Miami-Dade. What we want to do is get good at it. We're getting the processes in place, we had a little bit of a slow start, but we've managed to put the right people in place now. They're performing excellent. I think it's a very efficient operation for us. And then eventually will allow -- we'll be able to use the expertise we've gained to piggyback on some of our work around the country. So, we want to get the processes, people, and procedures down to very efficient operations so we have something to pick going forward.

Speaker 8: How is the ground ground leadaning business progressing? Yes, So we currently self perform here at Miami, Miami A. we're getting. What we want to do is getting good at it. We're getting the processes of the place. We had a little bit of a will start but we've ched of the right people in place. Now we're performing excellent. I think it's A. it's a very efficient operation for us and then eventually we we'll be able to use the expertise with game to picgy back on some of our work around country. So we want to get the processes people are procedures down to, you know very, very efficient operations and we have something duplicate going pull. So just to expand on that a bit. So here that a Miami International airport, we have our ground handling operation in place, both ground team. The results of that is that we Ve produced our ground handling bosssihere at a by about a third, while providing much better service because the ground team obviously is completely under our control. We're now expanding that. So we're going to be adding, fueling the capability. Here will' El our.

Ed Wegel: So, just to expand on that a bit. So, here at MIA, Miami International Airport, we have our own ground handling operation in place called Ground Team. The result of that is that we've reduced our ground handling costs here at MIA by about a third, while providing much better service because Ground Team obviously is completely under our control. We're now expanding that, so we're going to be adding fueling capability here, we'll fuel our own aircraft here at MIA, which will save us money even as we pencil out all of the costs of that. Plus it gives us greater flexibility in our fueling. We are often the second or third cousin, when it comes to getting fuel because of the big presence of American Airlines and some of the big ULCC that are here at MIA. So, we're getting our own fueling trucks, which will save us money and reduce our handling times. And as well, we're looking to expand as Ryan said, Ground Team, to the Westcoast of Florida. We're looking at Tampa, where we operate now to Havana and we'll probably expand that operation. So, it makes sense for us to have our own people there. We've been invited to put a ground handling operation in St. Petersburg, Florida, which is a growing airport and we'll probably put it there. But just in the case of the fueling operations at MIA, the airport here has asked us if we could fuel other airlines now, because of a difficult situation for fuelers and the number of fuelers here at MIA. So, we're going to provide for ourselves, and as well, we're going to fuel other airlines and we expect to make money doing that.

Speaker 2: The result of that is that we produced our ground handling bostsier a by about a third, while providing much better service, because the grwn team obviously is completely under our control. We're now expanding that, So we're going to be adding. Fueling the capability here will fuel our own aircraft.

Speaker 2: Here at LAA, which will save us money even as we penle out all of the costs of that. Plus, it gives us greater flexibility in our fueling. We are often the second or third cousin when it comes to getting fueled because of the big presence of American airlines.

Speaker 6: And some of the big L C C's that are here at M So're. We're getting our own fueling trucks, which will save us money and reduce our reduce our handling times and as well that. And we're looking to expand, as Ryan said, Brown team to the West Coast of Florida. We're looking at Tampa, where we operate now to Nevada and we'll probably expand that operation. So it makes sense for us to have our own people there. We've invited we've been invited to put a ground heiling operation in St petersburg Florida, which is a growing airport, and we'll probably put it there. But just in the case of the, the fueling operations that M a, the airport here, is asked us if we could fuel other airlines now because of a difficult situation for fuelers and the number of fuelers here at A. So we're going to provide for ourselves and as well we're going to fuel other airlines and we expect to make money doing that.

Speaker 3: Bu situation for fuelers and the number of fuelers here at A. So we're going to provide for ourselves and as well we're going to fuel other airlines and we expect to make money doing that.

Operator: Here's just one more. Certainly there's been a lot of controversy in the U.S. It's a very political issue, the problems at your southern border with immigration. And Mike Roberts, again, is asking if Title 42 comes to an end, is that going to impact your government contracts?

Speaker 4: Here's just one more. Certainly there's been a lot of controgacy in the U's. It's a very political issue: the problems at your Southern border with immigrationand my progress again is asking of title 42 comes to an end. Is that going to impact your government contracts?

Ed Wegel: No, it won't. Personally, I don't think Title 42 will end if it does, then there's still the number of illegals that come across the border are so large and the people that we transport back are being transported back for reasons other than the fact that they've crossed the border. So, that will not end. And the need for these services -- we have been told by the government will increase from -- they'll almost double the number of aircraft that they need in this program over the next several years.

Speaker 16: firstofpose, I don't think title 42 end. If it du, then there's still the number of illegals that no across the border are so large, and the people that we transport back are being transported back for reasons other than the fact that they ve crossed the border. So that will not end. And the need for these, these services, we have been told by the government.

Speaker 9: I don't. No, they WOn't. personposeally, I don't think title 42 end. If it du, then there's still the number of illegals that no, across the borardder are so large and the people that we transport back are being transported back for reasons other than the fact that they crossed the border. So that that will not end and the need for these services we have been told by the government.

Speaker 2: Will increase from. They'll almost double the number of aircraft that they need in this program over the next several years.

Ed Wegel: So, we feel pretty confident about that business, it will be run under our Capital Airlines subsidiary. We believe that we provide a very, very efficient service for the government, one that is much needed. But we also do things in that contract, such as moving miners to other parts of the U.S., so that they can re-linkup with their families, which we think is a very, very good thing for us to be doing. So, no, we don't see an impact either positively or negatively. We just believe and understand that from our government contacts that this business will continue to grow, particularly in a recession where the recession impacts all of the Americas.

Speaker 3: Will increase from. They'll almost double the number of aircraft that they need in this program over the next several years. So we feel pretty confident about that business. It will be run under our capital airlines subsidiary. We believe that we provide a very, very efficient service for the government one that is much needed, but we also do things in that contract, such as moving minors to other parts of the? U's So that they can relink up with their families, which we think is a very, very good thing for us to be doing. So no, we don't. We don't see an impact, either positively or negatively. We just believe and understand that from our government conacts that this business will continue to grow, particularly in a recession where the recession impacts all of the americasjo, where I believe that.

Multiple speakers: [Operator] With that, gentlemen, I believe that was the last question because nothing else has come in. So, we're going to wrap. Again, congratulations, you're doing a great job. You and the team got a stock that's trading at above current market cap is about half of what you're forecasting is your base case revenues this year. So, we'll let that speak for itself and perhaps the market will have an epiphany and we'll see a reversal on the stock price. Again thank you, Ed. Thank you, Ryan. [Ed Wegel] Thanks Grant. Thanks for the platform. Thanks for allowing us to use it today. Everyone, have a great day.

Speaker 10: Was the last question because nothing else has come in, So they we'were going to wrap again. Congratulations to doing a great job. You and the team ve got a stock that's trading and about current market cap is about half.

Speaker 8: Was the last question because nothing else has come in, So they we'were going to wrap again in congratulations to doing a great job. You and the team Ve got a stock that's trading and about current market cap is about half.

Speaker 9: What you're forecasting is your base case revenues this year or so. We'll let that speak for itself and perhaps the market will have an iffany and we'll see reversal on the stock prace again. Thank you, Ed. Thank you right. Thanks man. Thanks for the blackatform, thanks for allow us do to use it today, and what a great day day.

Speaker 8: What you're forecasting is your base case revenues this year or so's. That speak for itself and perhaps the market will have an epifphany and we'll see a reversal on the stock prace again. Thank you Ed, Thank you RO, thanks MAN, thanks for the blackatform, thanks for allowing us to use it today and what have a great day. Thanks maring on.

Operator: Thanks to everyone.