Cargojet Q4 revenue up 26% on diversification
Domestic network revenue for quarter was less than 45% of total revenue compared to over 47% for same period in 2020.
Canada's premium air cargo service provider Cargojet reported a 26 percent increase in Q4 revenue to $235.9 million compared to $187.1 million in the same period last year.
Net income for the quarter was $102 million (net income of $33.4 million excluding warrant valuation gain) compared to net loss of $20.5 million in 2020 (net income of $27.4 million excluding warrant valuation loss), according to an official statement.
"Total revenue growth for the quarter reflected the results of our previously announced diversification strategy that is helping deliver a balanced portfolio growth where each line of business is a strong contributor," according to an official statement. "Domestic network posted 18.2 percent, ACMI posted 26.6 percent and the charter business posted 54.6 percent growth compared to the same period last year. Domestic network revenue for the quarter accounted for less than 45 percent of total revenues compared to over 47 percent for the same period in 2020."
Total revenue for the year was $757.8 million compared to 2020 revenue of $668.5 million. Net income for the year was $167.4 million (net income of $88.4 million excluding warrant valuation gain) compared to net loss of $87.8 million in 2020 (net income of $90.1 million excluding warrant valuation loss).
"As we begin to prepare for the post-pandemic world, Cargojet now has a substantially larger base of business to build upon compared to its pre-pandemic size and scale," says Dr. Ajay Virmani, President & CEO, Cargojet. "Building on the strong foundation of our domestic overnight network, we are aggressively diversifying to take advantage of the emerging growth opportunities."
A prolonged pandemic has triggered structural changes in the aviation industry over the past two years. "As major passenger airlines shed larger wide body fleets of B747s and A380s in favour of smaller, more fuel-efficient aircraft, Cargojet expects the reduction in resulting belly cargo capacity to become a longer-term structural shift. Cargojet's strategy to grow its international footprint continues to take advantage of this structural shift."
Growth and success, Dr Virmani added, will require top talent and Cargojet is building a dedicated international team.
(All references to $ are to Canadian dollars)
