Cargojet reports ‘exceptional’ second quarter results

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Aug 16, 2016: Cargojet, Canadian cargo airline, reported strong performance in the second quarter of the year as its contract with Canada Post results in demand growth.

Total revenues were $79.3 million, an increase of $4.1 million or 5.5 percent versus quarter two of the previous year. Gross margin was $20.9 million, an increase of $13.6 million or 186.3 percent versus quarter two of the previous year. Adjusted EBITDA was $22.5 million, an increase of $15.9 million or 240.9 percent versus quarter two of the previous year. Adjusted EBITDAR was $26.9 million, an increase of $11.2 million or 71.3 percent versus quarter two of the previous year.

"Our record financial and operating results for the quarter reflect our fleet optimization efforts and the elimination of one-time transition costs as we successfully completed the transformation to our new overnight network," said Ajay Virmani, president and chief executive officer.

"While organic growth remains flat, we are encouraged by the improvements in yields and continued prudent management of our operating costs including ongoing capacity management," he added.

Last year’s performance was affected by one-off start of costs associated with winning the Canada Post contract. In April, Cargojet announced that it will operate a freighter service between Canada and South America on behalf of Air Canada.

Cargojet operates its network across North America each business night, utilising a fleet of all-cargo aircraft.mean

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