Cargojet plans fleet expansion
Cargojet Inc. is planning to purchase five Boeing 767 freighters and two B-777 freighters to keep up with pandemic-fueled e-commerce activity.
The Hamilton, Ontario-based company has raised $350 million through a stock offering.
The 767s are slated for delivery starting this year, with the last one arriving in 2023. The 767s will cost Cargojet $200 million, while the 777s will be $75 million each. They will be delivered in late 2023 and the first half of 2024.
The company is also planning to develop a new hangar and additional infrastructure.
Demand for Cargojet’s international air cargo services has increased thanks to the reduction in bellyhold capacity caused by the reduction in passenger flights around the world. The long-haul 777s will be deployed on international routes to meet this demand for capacity.
Cargojet added a plane and additional staff in the fall of 2020 to keep up with demand. The company had also announced measures in March, including reorganizing routes to accommodate additional volumes caused by the pandemic.
The company will also spend $89.3 million to pay off aircraft leases.
- An early version of this article has been corrected to reflect the amount raised through the stock offering. Inside Logistics regrets the error.