DHL Express has extended its trial contract with Global Crossing Airlines, a Miami-based provider of dedicated contract air and as-needed charter flights, by four months, Global Crossing said in its earnings report last week.
Global Crossing Airlines (OTCQB: JETMF) operates four Airbus A321 converted cargo jets in addition to 15 Airbus passenger aircraft. In April, GlobalX began a short-term contract flying parcels within DHL Express’s air network. Partner carriers in other regions, such as Europe, have utilized A321 cargo jets for DHL, but GlobalX is the only carrier in North America currently using the aircraft type.
The A321 is a narrowbody jet comparable to the Boeing 737-800 and is envisioned by supporters as a potential substitute for the Boeing 757-200, which is nearing the end of its commercial life.
With the extension, Global X will now fly for DHL Express through the end of the year, including the busy peak season.
GlobalX is operating daily between DHL’s hubs in Miami and Cincinnati/Northern Kentucky International Airport, plus twice a week to Orlando, Florida, according to aviation database Flightradar24.
GlobalX reported revenue increased 7% during the second quarter to $61.4 million, compared to the same period last year. The startup carrier is turning the corner towards profitability, with net income doubling to $600,000. Earnings before interest, taxes, depreciation, amortization and rent, a common metric for measuring financial health in the airline industry because of the heavy lease costs for aircraft, increased 6% to $19.8 million.
The airline is still struggling to consistently grow cargo revenue given the overall market weakness, overcapacity of narrowbody freighters and reduced use of air transport by the U.S. Postal Service. Nonetheless, block hours are up 125% year over year thanks to contracts with DHL, Caribbean-focused IBC Airways and an intermediary for United Airlines’ cargo division.
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