Cargojet’s crawling Q3 profit

DESPITE lower volumes in its key overnight cargo services Cargojet has recorded a small profit in the third quarter.

Profit for the period came in at CA$1.3 million (US$1.27 million) compared with a loss of $9.7 million in the same 2010 period when it booked an unrealised loss of almost $8.4 million on trust units related to its conversion from an income trust.

Revenues in the three months ended 30 September were $40.3 million, against $38.8 million for last year.

“Higher revenues in the quarter reflect an increase in charter, ACMI (aircraft, crew, maintenance and insurance) and fuel surcharge revenues, which were offset by lower than expected volumes on our core overnight network and continued depressed yields,” said chief executive officer Ajay Virmani.

“While we are encouraged by the increased demand for ad hoc charter and new revenue opportunities, we remain cautious about the speed of recovery in the economy and continue to undertake the necessary steps to reduce costs to improve overall margins,” he added.

Cargojet transports more than 750,000 pounds (340 metric tonnes) of time-sensitive air cargo each business night across North America using 13 freighters.