Cargojet announces strong third-quarter results

By Mike Bryant

Canadian cargo airline Cargojet has announced strong third quarter 2022 results.

For the three months ending September 30, the airline recorded total revenues of C$232.7m (US$170.6m), significantly up on the figure of C$189.5m (US$138.9m) made in the same quarter of last year.

The revenue growth of 22.8% reflected, Cargojet said, a strong contribution from its domestic cargo network, for which revenue was up by 21.2%, as well as from its ACMI business – whose revenue was up by 47% year-on-year.

Gross margin for the quarter was C$57.6m (US$42.2m), which compared favourably to C$54m (US$39.6m) in the same quarter of last year.

“Over the past several years, Cargojet has evolved its business model that is increasingly based on strategic partnerships rather than transactional relationships with its customers,” declared Ajay Virmani, president and chief executive.

“By aligning our long-term commercial interests, we expect greater endurance of volumes with our strategic customers even if global volumes soften during a recessionary period.”

Virmani continued: “The continued global increase in e-commerce demand has produced strong growth in our domestic and ACMI business segments during the quarter.

“We continue to monitor various macro risks including a potential recession, which may have impact on consumer spending.

“As such, Cargojet continues to carefully manage its strategy to match the capacity required with actual customer demand.”

Pointing to “another strong quarter with 99.7% on-time performance”, he praised Cargojet employees for “continuing to deliver excellence while delivering strong revenue growth”.

In May, Cargojet selected Israel Aerospace Industries (IAI) to carry out passenger-to-freighter (P2F) conversions of its B777-300ER aircraft.

In November 2021, Cargojet was announced as the launch customer for Mammoth Freighters’ B777-200LR freighter conversion programme.

Cargojet revenues jump in Q1 as it expands B777 conversion order

Cargojet the launch customer for Mammoth’s B777 conversion programme

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