Cargojet's second-quarter revenues increased by 3.2% year on year due to growth in domestic and charter revenues.
For the second quarter ended 30 June, the Canadian cargo airline said total revenues were C$238.2m, an increase of $7.4m compared to the second quarter of 2024.
Revenues were driven by a 14% increase in domestic revenues and 22% growth in charter revenues, said the airline.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was C$80.2m, an increase of C$1.1m or 1.4% compared to the same quarter of the previous year.
Net loss was C$3.2m, a decrease of C$21.8m or 87.2% compared to a net loss of C$25m for the second quarter of 2024.
Jamie Porteous, Cargojet's co‑chief executive, said: “Cargojet posted strong overall revenues despite ongoing uncertainty and a weakening economic outlook, underscoring the strength of our network.
"Softness in the ACMI segment from weaker European traffic was more than offset by robust domestic and charter revenue growth, and with the EU‑US trade deal now in place, we expect the EU–US corridor to reopen and generate new ACMI and charter opportunities in the coming quarters."
Pauline Dhillon, co-chief executive, added: “Ensuring that we can deliver shareholder value in any economic cycle remains a clear priority. Our company wide cost management and productivity initiatives produced a year-on-year improvement in adjusted EBITDA and sequential improvement of 140 basis-point increase in adjusted EBITDA margins, despite a 10% drop in block hours flown during Q2 versus the prior year."
DHL Express recently renewed its partnership with Cargojet for freighter operations covering Canada and Latin America until 2033, and Porteous said in the company's second quarter earnings call that the partnership was helping boost business outside of Canada.
"Our mission is to stay one step ahead and we have demonstrated just that by identifying growing ACMI opportunities with DHL, by entering into long-term contracts for China scheduled charters and we will continue to find new and emerging trade routes around the globe," said Porteous.
However, he added: "That said, we did see some weakness in our European ACMI routes after deliberation day, but we remain optimistic that after the EU-US trade deal and our new DHL agreement, air cargo flows will reemerge in the coming quarters."
On the domestic business, he added that the company "expect the volumes to remain resilient", aided by verticals including e-commerce. Cargojet last month extended its Air Transportation Services Agreement with Amazon Canada Fulfilment Services.
Cargojet said in the earnings call that it currently has 43 aircraft, a mix of Boeing 767 and Boeing 757 freighters.
Porteous said during the quarter, it acquired a total of four aircraft, three converted Boeing aircraft and a production freighter.
In its second quarter earnings transcript, Cargojet said would it sell two 767-300Fs in the third quarter and end the lease of a 767-200F in the first quarter of 2026.
