Cargojet delivers growth surge despite flat market

Canadian express freight airline Cargojet defied flat overall growth to deliver “exceptional” financial results in the second quarter of the year as its contract with Canada Post results in demand growth.
Total revenues were up by C$4.1 million or 5.5%, to C$79.3 million, versus quarter two of the previous year. Gross Margin surged by over 186% to reach C$20.9m, an increase of C$13.6m while adjusted EBITDA earnings (earnings before interest, taxes, depreciation and amortisation) were C$22.5 million, an increase of C$15.9 million or 241% up on quarter two of the previous year.
President and chief executive, Ajay Virmani, said the results reflected fleet optimisation measures and the elimination of one-time costs as the carrier completed the transformation to its new overnight network.
He added: "While organic growth remains flat, we are encouraged by the improvements in yields and continued prudent management of our operating costs including ongoing capacity management."
Last year’s performance was affected by one-off start of costs associated with winning the Canada Post contract.
In April, Cargojet announced a deal to operate a freighter service between Canada and South America on behalf of Air Canada.