Cargojet earnings tumble

CANADA-based time-sensitive overnight air cargo services provider Cargojet recorded a slump in earnings during 2010.

While total revenues were up 8.8 per cent over the previous year, registering CAD$156.2 million (US$160.4 million), expenses were also higher and EBITDA was down CAD$4.6 million ($4.7 million), totalling CAD$19.9 million ($20.4 million), 18.8% per cent lower than the previous year.

Signs of recovery appeared in the fourth quarter with revenues up 15.3 per cent over the same period in 2009, and earnings took a lighter 4.3 per cent knock against the previous year.

“Customer demand showed continued stability, growth and strength in the fourth quarter resulting in EBITDA that was comparable to the prior year. We are benefiting from the full effect of cost controls implemented at the end of the second quarter, combined with significantly increased customer demand and the continued outstanding work of every member of the Cargojet team,” said Ajay Virmani, president and chief executive officer.

Cargojet transports over 750,000 pounds of air cargo each business night, utilising a fleet of 13 all-cargo aircraft.