Cargojet 2024 revenue hits $1 billion

Canadian all-cargo carrier Cargojet reported a 14 percent increase in revenue at $1 billion for 2024, primarily due to an increase of $58.7 million in all-in charter revenues, ACMI revenue (+$36.5 million) and domestic network revenue (+$20.9 million).

Net earnings nearly tripled to $108.4 million from $37.3 million in 2023, says an official release.

"Revenue related to the domestic network business for 2024 was $375.9 million compared to $355 million for the same period in 2023, an increase of $20.9 million or 5.9 percent. The increase was due primarily to increase in e-commerce and B2B volumes during the period.

"All-in charter revenue for 2024 was $158.6 million compared to $99.9 million for the same period in 2023, an increase of 58.8 percent. The increase in revenue was primarily due to the scheduled charter services between China and Canada, which started during the current year, as well as an increase in ad-hoc charters."

Total revenue for the fourth quarter was $293.2 million compared to $221.9 million in Q42023, an increase of 32 percent. Net earnings for the quarter came in at $71.2 million compared to the net loss of $34.9 million for the same period in 2023.

“The growth in the fourth quarter of 2024 reflected a strong recovery from the prior year and indicates the resilience of the diversified business model. Management expects this growth to continue in 2025 in each revenue stream although at a slower pace due to the uncertainty surrounding proposed tariffs and potential trade wars and the possible negative impact that this may have on global air cargo demand.”

Jamie Porteous, Co-Chief Executive Officer, Cargojet says: “Cargojet produced very strong results for the fourth quarter and full year 2024 delivering on our financial and operational objectives. For the full year, we reached a record and historic milestone of over $1 billion in revenues for the first time in Cargojet’s history. Our strong, diversified business model has proven resilient in times of economic uncertainty, and we remain focused on driving operational efficiency and maintaining strategic flexibility to harness new growth opportunities and protect margins."

Pauline Dhillon, Co-Chief Executive Officer adds: "Once again, our dedicated Cargojet team of professionals delivered excellent on-time performance for our customers despite demanding and challenging weather during the holiday peak season while handling record volumes. We thank each and every member of our team who are the true driving force of our continued success. Cargojet achieved a 16 percent growth in block hours flown during the fourth quarter, resulting in improved aircraft fleet and overall asset utilisation and directly contributing to a very strong full year and quarter."

Long-term customer contracts generate 75 percent of annual revenue with options, "and we are well positioned to benefit from long-term secular trends in e-commerce serving both B2C and B2B segments," Cargojet said in its results presentation.

"The company has three Boeing 767-300 aircraft that are currently in conversion process and are progressing as planned for induction into the fleet in 2025. The first and second converted freighters are expected to be delivered by the end of the first quarter, and the third converted freighter will be delivered in the third quarter. The company is in the process of buying one factory manufactured freighter that will also be delivered by the end of the first quarter of 2025.

"One leased Boeing 767-200 aircraft will be returned to the lessor at the end of April 2025 to maintain an optimised fleet level to cover operational requirements, heavy maintenance requirements and additional growth requirements. Cargojet also owns feedstock for two additional freighters that are available for conversion to support additional long-term growth, when required."

(All figures are in Canadian dollars)