Cargojet revenues higher than expected amid weak economic outlook

Cargojet Inc. reported higher revenues and narrower losses in the second quarter despite a weakening economic outlook.

The Mississauga-based cargo airline said revenue for the three months ended June 30 totaled $238.2 million, up 3.2 per cent from $230.8 million in the same period last year. The increase was driven by a 14 per cent rise in domestic revenue and 22 per cent growth in charter revenue.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 1.4 per cent to $80.2 million. The company posted a net loss of $3.2 million, compared with a $25-million loss a year earlier.

“Cargojet posted strong overall revenues despite ongoing uncertainty and a weakening economic outlook, underscoring the strength of our network,” said co-chief executive officer Jamie Porteous. “Softness in the ACMI segment from weaker European traffic was more than offset by robust domestic and charter revenue growth, and with the EU–U.S. trade deal now in place, we expect the EU–U.S. corridor to reopen and generate new ACMI and charter opportunities in the coming quarters.”

Co-CEO Pauline Dhillon said cost management and productivity measures boosted margins despite a 10 per cent drop in block hours flown. “Ensuring that we can deliver shareholder value in any economic cycle remains a clear priority,” she said.

The company said it achieved a record on-time arrival performance of 99.5 per cent within 15 minutes of scheduled arrival times during the quarter.