Cargojet reports increased revenues and profits in Q1

Aircraft lessor Cargojet saw first-quarter revenues increase by 13.9% year on year, driven by its overnight and charter business.
The Canadian company reported total revenues for the first three months of the year of C$99.2m, while earnings before income taxes improved by 71.1% year on year to C$6.5m and net earnings were up 73.1% to C$4.5m. First quarter block hours increased by 1.5% to 7,184 hours.
“Cargojet is very pleased with the continued revenue growth and margin improvements achieved during the quarter” said Ajay Virmani, president and chief executive.
“We continue to carefully manage our operating costs and focus on greater utilisation of our fleet.” he added.
The increase in total revenue was due primarily to a C$3.1m increase in core overnight revenues, a C$0.6m increase in ACMI revenues, a C$3.8m increase in all-in charter revenues, a C$3.7m increase in fuel surcharges and other cost pass-through revenues, and a C$0.9m increase in lease and other revenue.
Its overnight business benefited from improved volumes from existing customers and contractual annual price increases.
The increased ACMI scheduled and ad hoc charter revenues was primarily due to a new scheduled route to the US that started in April 2017.
The increase in all-in charter revenue was due primarily due to additional flights between Canada, Colombia and Peru and between Canada and Europe.

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