Cargojet reports bump in revenue and earnings in Q2

Cargojet Inc. reported revenue growth of 43.3 percent in the second quarter of 2022 over the previous year.

Total revenues for the quarter were $246.6 million compared to second quarter 2021 revenues of $172.1 million. The company said the growth reflected a strong contribution from its domestic network, up 15.0 percent, ACMI, up 62.4 percent and all-in charters, up 23.2 percent compared to same quarter last year.

Net income for the quarter was $160.9 million, compared to net loss of $11.1 million in 2021.

The carrier pointed to macro uncertainties that continue to impact air-cargo supply chains, with passenger airlines facing extremely difficult operating conditions. The impact of rapidly shifting schedules and poor on-time performance of passenger airlines has further restricted the ability of cargo shippers to utilize belly space. “This, combined with ongoing supply chain challenges, continues to provide opportunities for Cargojet to capture unmet demand in the medium term,” the company said in a statement.

Furthermore, despite short term volatility, the shift to e-commerce continues to hold steady.

“Unpredictability of belly space was the reason Cargojet was born over 20 years ago. From the first day of our existence, we have focused on doing just one thing – flying cargo. That’s our sole purpose and mission. We have built a brand that is trusted by our customers to keep its promises and the recent macro events have further strengthened our resolve to stay focused on serving our customers,” said Ajay Virmani, president and CEO.

“Yet, we are not immune to the global forces of high inflation, high fuel prices and geopolitical uncertainties. Therefore, we remain prudent in how we are approaching the next few quarters as we continue to balance investing in growth with maintaining a strong balance sheet.”