Canada Jetlines Announces Q4 and Full Year 2023 Financial Results

Published March 28, 2024

TORONTO, ON / ACCESSWIRE / March 28, 2024 / Canada Jetlines Operations Ltd. (Cboe CA:CJET) ("Canada Jetlines" or the "Company"), one of Canada's leading leisure airlines, today reported financial results for the fourth quarter and full year ended December 31, 2023. All financial figures are in Canadian dollars and in accordance with IFRS as presented in the annual consolidated financial statements.

Q4 2023 Three-Month Period Financial Results:

  • Operating revenues of $9.9 million, representing an increase of $6.6 million compared to Q4 2022.
  • Operating loss of ($6.1) million, with an operating margin of (61.4%), a decrease of $1.9 million compared to Q4 2022.
  • Adjusted EBITDAR* of ($3.7) million, an increase of $0.7 million compared to Q4 2022.
  • A net loss of ($7.1) million, an increase of $2.5 million compared to Q4 2022.
  • Net cash flows for 2023 from operating activities of $3.0 million, an increase of $10.1 million compared to the same period of the prior year.

Total operating revenue for the fourth quarter 2023 was $9.9 million compared to $3.2 million in the same period of the prior year, representing an increase of 205.1%. The increase is comprised of flight revenue and subservice ACMI (Aircraft, Crew, Maintenance, and Insurance) and charter revenue.

Total operating expenses for Q4 2023 were $15.9 million as compared to $7.4 million in the same period of the prior year, an increase of 116.0%. This increase was primarily due to the increase in operational activity related to an increase in number of aircraft and aircraft utilization as compared to Q4, 2022.

The loss and comprehensive loss were higher for the Q4 2023 as a result of higher fixed costs due to growth in the number of aircraft. Going forward, the Company expects to see seasonal variation in its revenues, loss and comprehensive loss.

Eddy Doyle, Canada Jetlines' CEO said, "Canada Jetlines has made significant strides in expanding its operations in 2023, now selling and operating flights from Canada to the USA, Jamaica, and Mexico, with ongoing efforts to secure similar approvals in select Caribbean countries. Our goal has always been to provide Canadians with unbeatable vacation options and travel experiences."

*Adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft rent) IS referred to in this news release. Such measure is a non-GAAP financial measures, non-GAAP ratios, or supplementary financial measures, are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. Refer to the "Non-GAAP Financial Measures" section of this news release for descriptions of these measures, and for a reconciliation of Canada Jetlines non-GAAP measures used in this news release to the most comparable GAAP financial measure.

Full Year 2023 Financial Results:

Total operating revenue for the fiscal year 2023 was $37.2 million compared to $3.3 million in the previous year. The Company continues to grow its charter and ACMI operations, generating $26.7 million in revenue in fiscal year 2023 compared to $2.4 million in 2022, representing an increase of 1,012.5%. Such increase is due to increased flying activity with the Company's larger aircraft fleet.

Total operating expense of $46.0 million for the 2023 fiscal year increased from $15.9 million in 2022, representing a 189.3% increase. This increase was primarily driven by significant fixed expenses incurred as part of continued growth of the Company and increase in the aircraft fleet.

Total assets increased by 84.0% to $50.2 million at year end 2023, from $27.3 million as at December 31, 2022. This increase in total assets is primarily attributable to the capitalization of right of use assets associated with the addition of aircraft under lease and increase in property and equipment.

Total liabilities increased by 91.3% to $55.9 million at year end 2023, from $28.9 million as at December 31, 2022. The increase was made up of the liabilities associated with lease liabilities for the three aircraft, as compared to two aircraft in December 2022. It is also attributable to increased operational activity and the timing of payments and invoices received at the end of the period.

Summary of Annual Results

December 31, 2023 December 31, 2022
$37,181,396 $3,326,824
Net Income (Loss) and Comprehensive Income / (Loss)
$(11,495,335) $(13,438,121)
Income / (Loss) per share
$(0.14) $(0.22)
Total Assets
50,218,049 27,289,573
Total Liabilities
55,925,115 28,948,171

Management Commentary and 2024 Update:

In July 2023, the Company announced that it has taken delivery of its third Airbus A320 aircraft, which has been provided by a global aviation lessor providing aircraft and capital to the world's airlines. This addition enabled scheduled service expansion to new leisure destinations, fulfilling the Company's commitment to customers and agency clients to becoming a premier choice leisure airline.

In November 2023, the Company announced that it will provide Canadians an option to buy all inclusive packages to the Caribbean through its wholly owned subsidiary, Canada Jetlines Vacations Ltd. ("Jetlines Vacations"). Jetlines Vacations will not only support the Company's airline operations but also build a network of resellers and holiday partnerships to expand its offerings and reach new customers. This strategic move further strengthens the Company's position in the leisure travel market and aligns with its commitment to providing Canadians with unparalleled vacation choices.

In January 2024, Canada Jetlines announced the doubling of its fleet to six aircraft with the leasing of three additional A320-214 aircraft, marking a strategic move to enhance the airline's operational capabilities and meet the growing demand for affordable air travel.

In January 2024, the Company also closed the third and final tranche of its non-brokered private placement, raising a total of $13.5 million. The final tranche, totaling $7,466,688, was raised from a single arm's length investor, Jetstream Aviation Inc. This successful financing demonstrates strong investor confidence in Canada Jetlines' growth strategy.

In March 2024, Canada Jetlines announced a strategic wet lease agreement with a prominent European carrier. The operation, set to begin with one aircraft in late April 2024 for a period of six months, and with a second aircraft in late June for a period of three months, reflects the Company's operational ability to maximize fleet utilization by deploying its aircraft and crew to Europe during the summer season.

In March 2024, Canada Jetlines also announced that it will deploy an additional two aircraft from its fleet in Morocco this summer under an Wetlease/ACMI lease agreement with Air Arabia Maroc. Under the terms of the agreement, two of Canada Jetlines' A320 aircraft will operate flights between Western European destinations and Morocco. The lease duration spans three months, commencing mid-June through to mid-September 2024.

"We are pleased with our strong start to the year as we execute our growth strategy. Looking ahead, Canada Jetlines' sustainable plan includes increasing its fleet to seven aircraft by the end of 2024 and projecting further expansion to 15 aircraft by 2026.This expansion aims to enhance operating economics, customer comfort, and overall guest experience, emphasizing a commitment to excellence from booking to in-flight service," said Doyle.


The Company ended the year with $6.7 million in current assets, an increase of $3.8 million compared to year end 2022. The increase is primarily attributable to increase in cash due to equity financing.

Current liabilities increased from $8.2 million in 2022 to $19.5 million as at December 31, 2023, mainly due to increased operational activity and growth in the aircraft fleet.

Based on the Company's working capital position, the Company will need to raise additional capital during the next twelve months and beyond to support its business plan. Canada Jetlines is seeking additional capital in the form of debt, convertible debt or equity in order to further invest in the business and facilitate the continued growth of the fleet, including the acquisition of additional leased aircraft, as well as additional working capital.

This news release should be read in conjunction with Canada Jetlines' Annual Audited Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2023 available on SEDAR+ at

Director Appointment

The Company also announces that effective today it has appointed Mr. Gurinderpal Singh as a director of the Company. Mr. Singh is the second nominee of Jetstream Aviation Inc. under the terms of its subscription agreement.

Non-GAAP Financial Measures

Below is a description of certain non-GAAP financial measures including adjusted EBITDAR used by Canada Jetlines to provide readers with additional information on its financial and operating performance. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results. These non-GAAP financial measures are provided as supplemental information to the financial information presented in this press release that is calculated and presented in accordance with GAAP and these non-GAAP financial measures are presented because management believes that they supplement or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past and future periods.

Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in the method of calculation and in the items being adjusted. We encourage investors to review our financial statements and other filings with applicable Canadian Securities Regulators in their entirety and not to rely on any single financial measure.

The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release (other than forward-looking non-GAAP financial measures) to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Per unit amounts presented are calculated from the underlying amounts.

EBITDA, Adjusted EBITDA and Adjusted EBITDAR

EBITDA (earnings before interest, taxes, depreciation and amortization) is commonly used in the airline industry and is used by Canada Jetlines as a means to assess operating results before interest, taxes, depreciation and amortization as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. In calculating adjusted EBITDA, Canada Jetlines excludes share based compensation as this may distort the analysis of certain business trends and render comparative analysis across periods or to other airlines less meaningful. In calculating adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and rent expense), Canada Jetlines excludes aircraft rent as this provides for a comparative analysis across periods or to other airlines that does not consider whether the airline leases or owns its aircraft.

EBITDA & EBITDAR Reconciliation

Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Year Ended December 31, 2023 Year Ended December 31, 2022
Operating Income / (Loss)
$(6,063,032) $(4,140,987) $(8,792,808) $(12,613,687)
Operating Margin
-61.3% -127.9% -23.6% -379.2%
Depreciation and amortization
$167,387 $113,800 $539,897 $264,918
$(5,895,645) $(4,027,187) $(9,252,911) $(12,348,769)
Share-based compensation
$1,042,803 $451,108 $805,056 $1,964,440
Adjusted EBITDA
$(4,852,842) $(3,576,079) $(7,447,855) $(10,384,329)
Aircraft Rent
$1,164,885 $564,704 $3,538,082 $1,307,135
Adjusted EBITDAR
$(3,687,957) $(3,011,375) $(3,909,773) $(9,077,194)

About Canada Jetlines

Canada Jetlines Operations Ltd. (Cboe CA: CJET), trading as "Canada Jetlines," is a Canadian leisure airline committed to providing an exciting travel experience to its passengers. With a growing network of destinations, Canada Jetlines is dedicated to connecting Canadians with some of the world's most captivating and sought-after locations.

Media Contact:
Julie Rempel

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Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this news release includes but is not limited to the Company's status as a leading leisure airline, the number of aircraft it intends to operate, the destinations of intended flights, the Company's growth strategy, efforts to secure approvals in select Caribbean countries, providing unbeatable vacation options and travel experiences, becoming a premier choice of leisure airline, the plans for and benefits of Jetlines Vacations, the commitment to provide unparalleled vacation choices, the details of future contracts and the commitment to excellence from booking to in-flight service.

In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to continue airline operations, the accuracy, reliability and success of Jetlines' business model; the continued compliance with the terms of governmental approvals; Jetlines concluding definitive agreements for additional aircraft; the success of operations by Jetlines the legislative and regulatory environments of the jurisdictions where Jetlines will carry on business or have operations; the impact of competition and the competitive response to Jetlines' business strategy; and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to, the ability to obtain financing at acceptable terms, the impact of general economic conditions, domestic and international airline industry conditions, the failure of the Company to conclude definitive agreements to acquire additional aircraft, supply chain disruptions causing delays in expected timelines, the impact of the global uncertainty created by COVID-19, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, the ability of management to implement Jetlines' operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of (or compliance with) the necessary licenses from regulatory agencies, and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking information.

SOURCE: Canada Jetlines Ltd.

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