Canadian cargo carrier Cargojet reported a 15 percent increase in revenue at $245.6 million for the third quarter of 2024 compared to third quarter 2023 revenue of $214 million.
Revenue from domestic network, ACMI and All-in Charter for the quarter was $205.4 million compared to $177.7 million for the same period in 2023, an increase of 16 percent, says an official release.
Net earnings for the quarter more than doubled (187 percent) to $29.7 million compared to $10.5 million for the same period in 2023.
For the first nine months of 2024, revenue increased eight percent to $707.6 million and net earnings declined 48 percent to $37.2 million.
“The improving interest rate environment and controlled inflation are fostering a more stable and optimistic economic outlook for Canada which we believe bodes well for future domestic volumes,” says Jamie Porteous, Co-Chief Executive Officer, Cargojet.
“While geo-political challenges continue to affect the overall transportation industry, we continue to find opportunities that are creating new sustainable revenue streams in fast changing global commerce. Yet, Cargojet is not immune to the headwinds of significant cost increases facing the aviation and the supply chain sectors.”
Pauline Dhillon, Co-Chief Executive Officer adds: “During Q3, we grew block hours by nearly 15 percent with no change in fleet size. We are sharply focused on optimising every aspect of our business to improve margins and deliver shareholder value. Our relentless focus on delivering best in class on-time performance continues to win new customers. As we prepare for the peak holiday season in the coming quarter, I want to acknowledge the remarkable effort being put in by every team member to support our customers during the most important shopping season of the year.”
Cargojet has completed the sale of the four remaining B777 aircraft, and has two B767 passenger-to-freighter (P2F) conversions in process. One P2F will be used to replace one B767 aircraft under lease that will expire on February 28, 2025 and the other will be utilised to execute on potential e-commerce charter opportunities, the company said during its analysts presentation after announcing the results.
Business outlook
Long term customer contracts generate 75 percent of annual revenues with renewal options, the company said. “We are well positioned to benefit from long-term secular trends in e-commerce serving both B2C and B2B segments.
“Peak season demand remains robust across all sectors and we are working diligently with our customers to ensure that additional peak capacity is available, and that overall performance and reliability is maintained.”