Canada Jetlines Considers New York Stock Exchange Listing Amid Expansion Plans

Canada Jetlines is evaluating the possibility of listing on the New York Stock Exchange, a move that could significantly enhance its financial footprint and investor reach. During the airline’s 2023 fourth-quarter investors call, CFO Percy Gyara shared insights into the ongoing deliberations about entering other financial markets, with the New York Stock Exchange being a potential candidate.

Although no final decision has been made, CEO Eddy Doyle emphasized the importance of weighing both the benefits and costs associated with such a strategic move. Currently traded on Cboe Canada, the low-cost carrier is assessing the implications of listing on a more prominent and liquid market.

The airline, which commenced operations in 2022, reported a net loss of CAD8.7 million (USD6.4 million) for 2023, marking an improvement from the CAD12.6 million (USD9.2 million) loss in the previous year. Additionally, in January, Canada Jetlines secured USD13.5 million through a non-brokered private placement with Jetstream Aviation, which holds approximately 50% of the company’s shares.

In pursuit of operational growth, Canada Jetlines plans to expand its fleet to six aircraft by the end of June 2024, up from the current four A320-200s. The airline is also focusing on maximizing its tour operating division’s revenue and securing new ACMI contracts. Notably, it has entered into wet-lease agreements with Air Arabia Maroc and Corendon Dutch Airlines for the IATA summer season, providing two A320-200s to each carrier. These aircraft are scheduled to return to Canada in the autumn to serve Jetlines’ own scheduled leisure destinations.

CEO Eddy Doyle highlighted the strategic rationale behind these ACMI agreements, pointing out the seasonal variation in demand for leisure travel to sun destinations from Canada. By leveraging the high demand for aircraft and crew in Europe during the summer months, Canada Jetlines can ensure guaranteed revenue and profit, thereby optimizing its fleet utilization throughout the year.

The potential listing on the New York Stock Exchange, alongside the strategic fleet expansion and ACMI partnerships, illustrates Canada Jetlines’ ambitious growth strategy and its commitment to enhancing its service offerings and financial stability.