Good morning, ladies and gentlemen. Thank you for standing by. Welcome to today's conference call to discuss Global Crossing Airlines financial results for the second quarter of 2026. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. Joining us on the call today are the company's Chief Executive Chairman, Chris Jamroz, President and CFO, Ryan Goepel, Senior Vice President, Corporate Controller, Wendy Shapiro, and Investor Relations Advisor, Aaron DeSouza. Please be advised for this conference call will contain statements that are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. do not place undue reliance on any forward-looking statements which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements. For important risks and assumptions associated with such forward-looking statements, please refer to the company's earnings press release for the second quarter of 2026 and the company's annual report for Form 10-K for the year ended December 31st, 2025. The company's presentation also includes certain non-GAAP financial measures, including EBITDA and EBITDA as supplemental measures of performance of the business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with the SEC rules. You will find reconciliation tables and other important information in the earnings press release for the second quarter of 2026, which is currently available on the Company Investment Relations section of its website. and now we'll turn the call over to the company's executive chairman, Chris Jamroz. Chris, please go ahead, sir.

Thank you, operator, and good morning, everyone. Global Oaks delivered resilient second quarter that demonstrated the underlying efficiency and scalability of the platform we have built. Despite an unusually concentrated period of maintenance events that constrain aircraft availability, we maintain year-over-year revenue growth generated second highest quarterly bid in our history and increased the productivity of the aircraft that we were in service. Achieving these results with fewer net available aircraft speaks directly to the strength of our operating model and the progress we have made in building a more capable and efficient charter operation. More broadly, the quarter reinforced an important point about evolution of Global X. Over the last past several years, we have been disciplined in developing the operating infrastructure, customer relationships, and internal capabilities required to support a significant future business. We are now seeing the benefits of that work. The platform is generating great revenue and earnings productivity from each available aircraft, and we believe that creates meaningful operating leverage as fleet availability improves and additional aircraft interest serves. The maintenance work completed during the quarter was necessary and substantial, with timing driven largely by calendar and aircraft usage requirements. While that activity affected near-term availability and financial performance, it was not reflective of underlying demand or the earnings potential of the business. The vast majority of our scheduled maintenance program is now behind us, and we view this work as an investment in long-term health and earnings capacity of the fleet as we scale. We are approaching the expansion with discipline by deploying capital into assets that improve reliability, support high utilization, and strengthen the long-term profitability of the platform. We believe the increased availability of aircraft in the market gives us an opportunity to modernize the fleet on attractive terms while building the scale necessary to serve a growing base of customers. Looking ahead, demand across our core passenger markets remains strong. During Q2, we operated more than 40 flights in support of a major international soccer tournament, and we continue to see substantial demand from Korean sports customers. The demand is there. Our focus is on having the available aircraft, people, and operating infrastructure in place to capture it reliably and profitably. We remain committed to becoming the largest and most reliable narrow-body charter airline in North America. The investments we are making today are designed to strengthen the durability of our earnings, expand the capacity of the platform, and create sustainable long-term value for our shareholders. With that, I will hand the call over to our President and CFO, Ryan Goepel, to discuss our second quarter operational highlights in greater detail. Ryan?

Thank you, Chris, and good morning, everyone. To understand our quarter, you need to follow four key things. Firstly, cargo revenue was down 2.9 million year-over-year, which was partially offset by $1.8 million increase in passenger revenue. Secondly, in Q2 of 2026, we had 22.3 aircraft that we were paying for, but only 15.3 aircraft that were available. Compare that to 2025 where we were paying for 19 aircraft and then 17.1 were available. Thirdly, in Q2 2026, we completed five heavy maintenance events and 16 non-heavy maintenance events. In Q2 2025, we had zero heavy maintenance events and 12 non-heavy maintenance events. The scheduled maintenance directly impacted not only our cash, but also our net available aircraft. Fourthly, due to the lack of a net available aircraft, non-revenue block hours increased 100% from 142 to 284 hours, adding $1 million in operating costs. Despite all of these negative factors, we generated year-over-year revenue growth, delivered our second highest quarterly EBITDA, and increased average utilization per available aircraft by 11%. That utilization improvement is particularly important because it shows that the aircraft we had in service are being deployed more productively. We generated approximately 523 block hours per available aircraft compared with approximately 471 hours in the prior year quarter. This reflects the progress we have made in scheduling, customer allocation and maximizing the revenue generating capacity of the available fleet. Operationally, we flew 8,010 total block hours despite the unusually concentrated maintenance schedule. Performance improved meaningfully in June as aircraft returned to service. With the vast majority of our scheduled maintenance program now complete and only two scheduled two-year checks remaining in Q3, we expect availability, fleet productivity, and operating leverage to improve throughout the second half of the year. The mix of our flying has also continued to support operational stability. ACMI represented 87% of total block hours flown compared to 84% a year ago. This higher ACMI mix provides a more predictable base of contract and flying, supports consistent utilization, gives us greater visibility into aircraft deployment and crew planning. At the same time, pricing across our charter business remains strong. Charter revenue per block hour increased 36% to approximately $18,100, reflecting healthy demand, constrained industry capacity, and favorable pricing across our core passenger markets. ECMI revenue per block hour was approximately $6,400 compared to $6,600 in the per year quarter, primarily reflecting the mix of longer duration agreements with higher minimum hour work commitments. While these contracts generally carry a lower rate per block hour, they provide important economic benefits through strong utilization, greater revenue visibility and more consistent operating performance over time. We also continue to invest in the operating infrastructure required to support future fleet growth. Pilot headcount increased 10% year-over-year to 165. Growing the fleet without the appropriate pilots, maintenance capabilities, systems, and operating controls would not create sustainable value. So we're working to ensure that each part of the organization develops in step with the aircraft growth. Turning to fleet expansion. We placed two Airbus A319 aircraft into revenue service during Q2. one in April, one in June, bringing the total number of A319s into service to three. We also took delivery of two Airbus A320 aircraft, one in June and one in July, that are currently undergoing conformity checks and are expected to enter into revenue service in Q3. The current aircraft supply environment has created an attractive opportunity to acquire younger aircraft at competitive pricing. Since quarter end, we signed an agreement to purchase three former Spirit Airbus A320 airframes together with multi-year agreements to lease the related engines. Together with the two E320s currently in conformity, these five younger aircraft should reduce the average age of the fleet by approximately 10%. Over time, we believe these additions should reduce scheduled and unscheduled maintenance requirements, increase aircraft availability, and support strong utilization and operating margins. We are focused on adding aircraft that improve the overall quality and earnings capacity of the platform. That means evaluating each opportunity based on acquisition or lease economics. expected maintenance requirements, customer demand, and the returns we believe the aircraft can generate once placed into service. Consistent with this approach, we are actively managing the composition of the fleet to maximize long-term value. Given the availability of younger aircraft in the current market, we elected to sell the A320 airframe we acquired last year to redeploy the capital towards newer, more efficient aircraft. In addition, one aircraft lease expires later this year and we expect to return that aircraft rather than renew the lease. This flexibility enables us to replace older aircraft when more reliable assets become available with attractive economics and to improve the quality of the fleet without retaining aircraft that no longer meet our return thresholds. We believe that disciplined fleet management will become an increasingly important driver of reliability, maintenance efficiency, and long-term profitability. Turning to customer demand, our pasture markets remain strong. During the second quarter, we operated more than 40 flights to support a major international soccer tournament in the United States, Canada, and Mexico. We also continue to see substantial demand from collegiate sports, with a 100% increase in the number of contracts out for signature versus time last year. For cargo operations, freight market conditions have not materially improved relative to passenger flying, as excess capacity and lower market rates continue to pressure utilization and earnings. Cargo remains a drag on near-term results, and we continue to prioritize passenger flying as the primary economic engine of the business. Looking ahead, we expect to reach 25 total aircraft by year-end and continue to target the addition of approximately four to five aircraft annually, subject to demand, attractive economics, and the operating infrastructure required to support discipline and profitable growth. With the majority of our scheduled maintenance program behind us, five younger aircraft expected to enter into revenue service, and substantial demand across our core passenger markets, we believe GlobalX's decision for stronger execution through the balance of the year. We remain focused on improving aircraft availability, fleet reliability and operating leverage while deploying capacity where we see the strongest returns and building a more efficient and durable platform for long-term growth. With that, I'll turn our call over to our SVP Corporate Controller, Wendy Shapiro, who will discuss their second quarter results in more detail.

Thank you, Ryan, and good morning, everyone. Please note that all financial results discussed today are for the three-month period ended June 30, 2026, and variance commentary is on a year-over-year basis and less stated otherwise. Revenue in the quarter increased 1% to $62 million compared to $61.4 million in Q2 2025. As Ryan discussed, the increase was driven by higher utilization per available aircraft and greater charter revenue per block hour. This was partially offset by lower net aircraft availability, which was down 11% year over year. ACMI revenue increased slightly to $44.6 million compared to $44.5 million in the prior year quarter. Charter revenue was $14.1 million compared to $15.3 million in Q2 2025. Total operating expenses increased 4% to $60.6 million compared to $58.1 million primarily attributable to higher depreciation and amortization associated with aircraft deliveries secured through finance leases, the purchase of an A320 aircraft, and an increase in rotable parts owned. Net loss attributable to Global X was 1.3 million compared to net income of 0.6 million in Q2 2025. Loss per basic and diluted share was negative two cents compared to earnings of one cent per basic and diluted share in the prior year period. EBITDA was $19.3 million compared to $19.8 million in the prior year quarter. EBITDA increased 17% to $6.9 million compared to $5.9 million in Q2 2025, representing our second highest quarterly EBITDA on record. Cash used in operating activities was $1.6 million compared to cash provided by operating activities of $8.8 million in Q2 2025. Turning to our liquidity, we ended the second quarter with approximately $11.9 million in cash and restricted cash compared to $20.5 million as of December 31st, 2025. Now, I will turn the call back over to Ryan for closing remarks.

Thank you, Wendy. Our second quarter performance demonstrated what the GlobalX platform can produce, even when aircraft availability is constrained. We generated our second highest quarterly EBITDA, maintained year-over-year revenue growth, and achieved a double-digit improvement in utilization for available aircraft while completing a substantial portion of our scheduled maintenance. We entered the second half of a healthier maintenance position, a younger fleet beginning to come online and robust demand across our passenger markets. Our priority is to convert those advantages into improved consistency, reliability and financial performance. We remain committed to disciplined growth and long-term shareholder value as we pursue are objective of becoming the largest and most reliable narrow-body charter airline in North America. This concludes our prepared remarks. I would like to open the call for Q&A. Aaron, over to you.

Thank you, Chris, Ryan, and Wendy, and thank you, everyone, for participating in the conference call. As we gather the queue for live questions, we'd first like to address a few of those questions that have come in via email over the past couple of weeks and following the issuance of our earnings press release yesterday. Our first question is related to maintenance, aircraft availability, and operating leverage. You completed an unusually concentrated maintenance program during the second quarter. With only two scheduled maintenance checks remaining in Q3, how should investors think about the transition from the Q2 disruption to improved availability and operating leverage during the second half?

I'll take that one. Thank you for the question. The reduced availability in Q2 was primarily driven by the timing and duration of scheduled maintenance, not weaker customer demand. We completed five heavy and 16 non-heavy events with several extending beyond their original timelines. Performance improved meaningfully in June as aircraft returned to service. With only two scheduled checks remaining in Q3, we expect significantly less scheduled disruption through the balance of the year. Importantly, utilization for aircraft increased 11% to approximately 523 hours, demonstrating that the aircraft in service were deployed more productively As aircraft availability improves, we believe we can spread our existing operation infrastructure across more productive flying, supporting stronger reliability, utilization, and operating leverage.

Thanks, Ryan. Our next question is related to fleet modernization and lease expirations. Can you provide an update on the aircraft entering the fleet and explain how the recent additions, potential aircraft sales, and upcoming lease expirations fit into the plan to get to 25 aircraft by year end?

Yeah, thanks for the question. And I think it's important to recognize managing your fleet age is one of the more critical aspects of maintaining long-term profitability for charter airlines. We placed two A319 aircraft into revenue service during Q2, bringing the total number of 319s into service to three. We also took delivery of two A320s, one in June, one in July. Both the youngest aircraft we've ever, both will be the youngest aircraft in the fleet that are currently undergoing conformity expected to enter into service in Q3. Subsequent to quarter end, we signed an LOI to purchase three former Spirit aircraft airframes and lease the related engines. Together, these five younger A320s are expected to reduce the average age of our fleet by 10%. At the same time, we are potentially selling the A320 airframe acquired last year and expect to return one aircraft when the lease expires later this year. Other lease expiration decisions will be based on the aircraft condition, maintenance requirements, lease economics, and customer demand. Our objective is to improve quality, reliability, and earnings through the earnings capacity of the fleet while progressing towards the 25 net aircraft year-end target.

Thank you. Next question is related to sports and broader passenger demand. What did the more than 40 soccer-related flights demonstrate about the platform? And what perspective can you provide on renewals, repeat customers, and the pipeline across sports, government, and entertainment flying?

I'll take that one as well.

The soccer-related flying demonstrates our ability to execute a significant number of operationally complex flights within a concentrated period that requires close coordination with across aircraft, crews, maintenance, and selling. To put in perspective, when the tournament we discussed started, we had nothing contracted within, and almost everything we did was within a 24 to 48-hour period of execution, of which we did 40 flights in Q2, and we did a significant number of flights in Q3. reliable performance during large events, strengthens our customer relationships, demonstrates the capabilities of our platform and positions us to compete for additional business. We did not disclose customer specific renewals, retention rates, pipeline values, or counterparty concentration. However, when you look at the college sports arena at this point last year, when you look at the number of contracts that have been issued, we're at double the rate we were at this point last year. We remain focused on repeat business opportunities that provide strong pricing, schedule, visibility, and attractive aircraft returns.

Thanks, Ryan. Next question is related to cargo performance and strategic alternatives. So cargo remains a drag on consolidated results. If sufficiently attractive cargo contracts do not materialize, how are you evaluating alternatives such as parking or returning aircraft, selling or subleasing assets, or redeploying engines into the passenger fleet?

Yeah, so every quarter we get to talk about cargo. So cargo-related market conditions are still challenging. There's excess capacity and lower rates continue to pressure utilization and earnings, as we foresaw four to six months ago. We have not established a specific deadline or predetermined outcome for the cargo fleet. Each decision is based on contract quality, expected contribution, lease obligations, asset values, and the highest return use of the aircraft and engines. Depending on the economics and contractual flexibility, alternatives could be included, could include operating, parking, returning, subleasing, selling assets, redeploying engines, the whole gambit. Nothing really concrete has happened outside of picking up a couple of small customers to increase our rates from Q2 to Q3, but we continue to explore all options. When you think about us as a company, subleasing aircraft isn't a core competency. and it's something we don't want to rush into because if you do that incorrectly, it can be very expensive. So I think what we're doing is we're taking a measured approach. We're trying to minimize the exposure and hopefully that'll improve the results as we go forward.

Understood. Two more questions. Next one is related to ACMI rates. Can you please explain why the ACMI rate dropped compared to the prior year quarter?

Yeah, so ACMI revenue was approximately $6,400 in Q2 compared to $6,600 in the prior year quarter. The decline was primarily a function of contract mix, not weaker underlying demand. During the quarter, a greater portion of our ACMI flying came from the longer duration agreements with higher minimum hour requirements. These contracts generally carry a lower rate per block hour, but provide stronger utilization, greater revenue visibility, and more consistent aircraft deployment. Translated, We make just as much money, if not more money, per aircraft per month with a lower rate for the flying more hours. We evaluate all these agreements based on their overall economics rather than that headline hourly rate. In many cases, the benefits of a higher guaranteed utilization and better operating visibility outweigh a modestly lower rate per hour.

Thank you. Last question for our Q&A is related to financial sustainability and measurable catalysts. How does management define financial sustainability, and what are the most important measurable catalysts investors should monitor over the next two quarterly reports? I'll take this one, if I may.

You got it, Nick? Okay, thanks.

Yeah, thank you. You know, I would like to kind of think about it in more than just the subsequent two quarters. For us, we have a short-term and a mid-term objective. The short-term is effectively to deliver profitable financial We view these financial sustainability objectives as building an operating platform capable of generating durable earnings in cash flow while supporting routine maintenance and disciplined growth. It's effectively a very strong focus on cash flow-positive business. and over the next two quarter reports, the first measurable catalyst is completing the two remaining schedule maintenance checks and demonstrating aircraft availability to improve the concentrated Q2 maintenance programs behind us. So we want to make sure we kind of have a test run of the platform with close to near full capacity utilization available to the operations. Investors should also monitor the timing of aircraft entering revenue service and progress towards our 25 year end target. Just be mindful that operating a full year with a certain fixed number of aircraft and getting to that fixed number of aircraft can be very expensive. So the cash is being utilized as we induct new aircraft into our operation. But just keep an eye on that. And ultimately, investors should look for those operation improvements to translate into more consistent aircraft availability. Utilization, EBITDA, and most importantly, operating cash flow and liquidity of the business. That's the pathway towards what we consider reliable, profitable, and durable business.

Thank you, Chris and Ryan. That concludes our pre-submitted questions. I'd now like to pass it over to the operator to open up the call for live Q&A.

Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one at this time. One moment while we poll for the first question. The first question comes from Barry Seen with Litchfield Hills Research. Please proceed. Hey, good morning.

I wanted to ask a question. I know you guys don't give formal guidance. But if I look at the actions that you've announced, you've taken a huge amount of maintenance and you're getting that done. You're adding to the fleet. That would all indicate to me that you're pretty bullish on demand for the next couple of quarters and the next couple of years. Could you comment on that, please?

Yeah, I think when you look at what we've done over the last three to four years is we've been constantly reinvesting the cash generated into more capacity because the demand is there. I've always stated this passenger market for us is easily a 35 to 40 aircraft market. We're at 17 today on the passenger side. So we have a significant runway of growth. And this is one of the reasons why you don't see us pursuing wide bodies or other initiatives while we dropped a lot of the other areas because there's so much opportunity in this one, call it a niche, but it's a massive niche, right? And so You know, the maintenance schedule that you saw was really driven by calendar and hours. So what happens is, you know, when you look at these aircraft, certain things have to be done by certain dates and certain things have to be done by when you've done a certain amount of hours. Well, we've been flying a lot more than we probably forecasted. So the downside is you got to put them in maintenance sooner. And it's just sometimes these things just sort of stack up. Now, we saw this coming probably in Q3, Q4 last year. We made a conscious decision because we knew the demand in Q1 was super strong. Keep in mind, April and May are the two weakest months of the year next to maybe September. Those are the three weakest months of the year for demand. We purposely, this is by design, scheduled the maintenance during that period of time because we know demand is lower. That being said, it was still really strong. We didn't deploy aircraft in Europe this year because of World Cup. That was a good call. We had a great tournament. As we look forward into college sports, as I said, that's a massive market with the way the competition is working out and playing. There's substantial demand there. The government service is strong and continuing to pick up. We definitely see a doubling of capacity over a period of time. Now, what I've learned over six years is you can't predict that period of time and how long it takes to onboard aircraft at what price at what time. But there is this opportunity, as we've stated with the bankruptcy of Spirit, there is a significant number of aircraft, significantly younger than what we have today, on the market at really good rates. And so we would be almost negligent if we didn't actively pursue those aircraft today, because that's something that sets us up not only for a quarter, but sets us up for years.

So just on the fleet availability, for the second quarter you reported 15.3 net available aircraft, and you gave us a lot of information on additions and subtractions to the fleet. I'm going to try and do the math myself, but can you give us any sense of what a net available aircraft will look like in the third quarter and the fourth quarter? And I know there's timing of when aircraft come and go. and you've got two maintenance checks in the third quarter scheduled. Can you give us any sense what those numbers look like? I know by year end you're hoping to get the fleet to 25, but that's not going to be net available aircraft for the fourth quarter of 25. It'll be something south of that. Can you give us any, you know, more concrete numbers?

Yeah, I think when you look on the passenger side, you know, the cargo number's three, so the cargo should be about three. And then passenger, could be as for Q3 would probably be between 16 and 17. So you're looking at 19 to 20 for Q3. And then for Q4, you're probably looking, if we back up months and stuff, you're probably looking in the 22 to 23 range.

And on the car, you mentioned the three cargo. Is one of those still parked without engines?

Correct.

Okay, good. Next question, there's a lot going on in the newspaper and some of that impacts you. Specifically, you've done historically a lot of flying into Cuba, Venezuela, big changes in those markets. And then from a macro perspective, we have the impact of oil prices. And I know that's the beauty of ACMI is that you don't really care because you're not incurring those prices. But if you could take a look at all of the geopolitical factors that investors are reading about, how does that impact your demand either positively or negatively?

So we've been out of the Cuba market for probably a year, if not a year and a half. So for us, that's an opportunity if it stabilizes and it starts to ramp up. When you look at Venezuela, we have a partnership down there. We're the only US commercial airline flying into Venezuela daily, and we're doing that now. So, you know, I think we have what we call almost a pole position in that spot. So we see opportunity there. I think when we talk about fuel prices, you know, I think about geopolitical probably too much. But I think high fuel prices generally will hurt the weaker scheduled carriers. And the impact to us would be the availability of aircraft and pilots. So if they scale back or they ratchet back or they scale back, there's more planes and pilots available. If they scale back their schedule, you know, the people we fly have to fly, right? Sports teams got to go. Government is going. If they have fewer commercial options, that just makes us more attractive. So, you know, the ultimate counter cyclical, but, you know, we never waste a crisis. I think we never, and we haven't in the past. So I think we sort of, and maybe that's me being the internal optimist, always trying to figure out where the opportunity is in all situations. So, I think the geopolitical landscape and what's going on provides real opportunity for us that we have a platform to take advantage of and we're going to.

And I guess just to clarify that, media reports said that Spirit's demise was largely due to higher fuel prices and you've just reported that you're going to pick up three of their aircraft. So I guess that's a good concrete example of what you've just talked about.

Yeah, like when you think about what the, yes, ultimately the thing that kind of what led to their demise was they couldn't absorb, they couldn't pass on the cost of higher fuel prices with where they were on their balance sheet. Yes, those aircraft are available. I'd say of the 100 or so aircraft in the market, maybe 20 or 30 have been placed or found a new home. there's still 60 to 70 that they still have to figure out what to do with so we are actively having those conversations and one of the benefits of being a more mature company is we have much more specific we used to be we would get whatever we can get and figure out how to make it work what we're doing now is we're figuring out what works for our customer base and how to target that aircraft so we can have an aircraft that fits for a purpose much better than in the past so It's such a subtle change, but it makes a huge difference for us in our ability to grow the business.

That's great. And then my last question, I appreciate the question and the answer that you gave on the cargo market. Just one more point on that. Justin Anthony, yesterday, a settlement in a lawsuit you had related to cargo, and it looks like there's an item on the income statement related to that. I don't know if you're under a non-disclosure, but can you talk about what happened there and the settlement and the financial impact?

No. There will be some details in our queue. I just refer you to our queue when it gets filed later today.

I figured that might be an NDA. Thank you very much.

You bet. The next question comes from Brian Food with Bardwick Capital Management. Please proceed.

Hey, good morning, guys. A lot of my questions have been covered, but some for bridging one quarter to the next and building the model. 523 block hours per available aircraft. Is there a way to think about utilization going forward? Is that a target number that you guys keep in mind and that we should pencil to?

Yeah, I think that's the target we would, you know, it's going to be tough to do much more per aircraft per month just to the nature of our business. If we can add the additional aircraft we're getting and hold close to that number, I think that would be, you know, if you're going to run scenarios, that's probably a bit on the optimistic side. But ultimately, that's kind of the utilization we want to get. I think as we kind of do some of these other longer-term ECMIs, you know, doing kind of a pseudo-scheduled operation, we're starting to get the utilization up on an average, which is great. Now, I say that... late Q4, Q1, you're starting into college sports. College sports doesn't have the same utilization, but it has a different rate. So you would see the rates go up on the charter side and the utilization come a bit down. But again, when I talk about our profitability per month per aircraft, I'm kind of, I wouldn't say indifferent, but as long as we compensate hours flown versus rate, we can move like a slide. We can move higher rates, lower hours and lower rates higher hours, as long as I get my profitability per month per aircraft. That's my target, right? And so those will move, and that's kind of noise in the model, but the profit per aircraft per month should stay what our target is. Okay.

And so along those lines, but also based on utilization, you increase the headcount. We need the headcount to get to 25 aircraft, obviously. What's the target? I mean, should we be modeling an industry standard attach rate per aircraft? What do we need to think of in terms of pilot availability right now, hours per pilot per aircraft, those type of metrics?

So, you know, one of the things we've been able to do, which is great for the crews, is we've done a significant number of captain upgrades. So first officers to captains. Again, with the availability of a significant number of South Florida pilots on the market who might want to stay in South Florida. Going forward, we have 50 open positions, half pilots, half cabin crew. So we look to fill probably 50 of those roles and probably 10 on the maintenance side, so 60 heads between now and the end of the year to meet. And there will be some turnovers, so some resignations, so the net number is probably a little bit lower. So that's kind of where the headcount we would see to add between now and the end of the year.

Okay. On the CapEx for the quarter, I noticed you guys called out investments in rotary equipment, spare parts investments across the quarter, and other. What was CapEx for growth? What was CapEx for maintaining the fleet, if you could break those numbers out for us?

Wendy, I'll talk for a few minutes if you can maybe back into some of that. But I think one of the mindsets we have is we have four bases, right? We have one in Miami, one in Louisiana, one in Texas, one in Arizona. One of the things that's really critical for us is when aircraft needs maintenance to be done or has a maintenance event, a part needs to be replaced. having parts available in those bases versus trying to source, ship, and install because every day, every hour these planes are down is, you know, a cost to us, and that's in the net available aircraft. So we're really trying to build up our stores in those bases for the basic ability to maintain them in revenue for more hours and to recover faster. So I think it's about half and half. I don't know if I'm way off, Wendy, or if you have a better estimate. No, that's about right.

Perfect. Thanks. Just finally, one of the questions came up, a great question about the aircraft on ground with removed engines. Are you able to harvest parts off the other cargo aircraft? And how do we think about the A, the monthly burn or quarterly burn that's associated with cargo so we could build a pro forma model because it looks like you generate a lot of cash without cargo. And two, related to that, when does cargo stop being a problem contractually, like the ultimate end date if we have to run them off through end of lease?

We aren't harvesting any parts off the plane that's parked just because we'd have to replace them. It's parked in a dry, safe place, so it's not really efficient to take parts off that. When will cargo no longer be a drag? What's a drag? I've used the number about a million dollars a month as a drag. I think we might be a little bit better than that with some of the activities we've done. Keep in mind, Q2 and Q3 are pretty weak cargo months. Q4, you know, there's a period of peak. That will be our, that's always the test because that's where extra capacity is needed. You know, one of the reasons we saw a real issue with cargo last year is when we had the MD-11s go offline, that's about 25% of the domestic capacity and the package carriers didn't need any help, which told me, oh, my God, there's got a lot, there's a ton of capacity out there. So as we go into peak season, which is, you know, October through December, that will be our gauge of the health of the capacity of the cargo market. And until we see that, we really don't have liability. Again, there's a ton of relatively old, fully depreciated aircraft. The one thing in our advantage is if fuel prices remain stubbornly high, we are more fuel efficient than those aircraft for sure. And so at which point will that price differential make a huge difference, right? The short answer is we don't know yet, but the Q4 will inform our next year.

Very good. Thanks, guys.

Thank you, ladies and gentlemen. This concludes today's teleconference. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.