Air freight, express networks & carrier operations
Cargojet posts record Q3 revenue as one-network strategy raises aircraft use
· Source: Cargojet / CNW / FreightWaves
Cargojet reported record third-quarter revenue of C$286.5 million, up 30.3%, and adjusted EBITDA of C$90.2 million, up 28.1%. Management credits stronger charter and contracted flying plus higher aircraft use, while warning that most temporary UPS flying is expected to end this quarter and that labor and maintenance costs are rising.
Summary and practical context by RoadHouse Recruiting · Reviewed
Revenue and earnings reached third-quarter records
Cargojet reported C$286.5 million in revenue, C$90.2 million in adjusted EBITDA and C$19.1 million in net earnings. Revenue rose 30.3%, adjusted EBITDA 28.1% and net earnings 117% from the prior-year quarter. The company also reported 99.3% on-time performance, but its adjusted EBITDA margin edged down to 31.5% from 32.0%.
Centralized fleet planning increased utilization
FreightWaves reports a 13.3% increase in block hours per aircraft under Cargojet's One Fleet, One Network approach, which manages domestic overnight, dedicated contract and charter capacity as one pool. The carrier says this lets it connect more international freight through Hamilton, Ontario and use aircraft outside overnight domestic windows.
Scheduled charter flying is expanding
Cargojet plans to increase Hamilton–Miami freighter service to three weekly flights on December 2 and says customers have committed volume. It also added a second weekly Hamilton–Liège frequency in September and has operated weekend charters to China. These are network options for forwarders, not guarantees of available capacity or unchanged rates.
Temporary UPS work is winding down
Cargojet has supplied aircraft while UPS replaced retired MD-11 capacity, but management expects most of that work to end this quarter as UPS receives Boeing 767 freighters. Cargojet says new South America flying and prospective Asia work should largely offset the change. That offset is management's expectation and depends on contracts and customer demand.
Labor and operating costs remain relevant
A new pilot contract providing a 53% pay increase over four years took effect in the quarter, and FreightWaves reports higher maintenance, ground and pilot expense. Cargojet has said it will pass higher pilot costs to customers when contracts allow. Forwarders should evaluate schedule reliability and connectivity alongside possible repricing.
Understanding the update
Cargojet's release supplies the Canadian-dollar results and management claims. FreightWaves independently analyzes aircraft utilization, network changes, temporary UPS flying and costs. Forecast replacement revenue and customer demand remain forward-looking and should not be treated as completed contracted volume unless Cargojet discloses it.
What it means for drivers and carriers
Cargojet's integrated network is creating more North American and international options, but forwarders should confirm December capacity and pricing as temporary UPS work declines and pilot costs rise.
Questions to consider
- Which Hamilton, Miami, Liège and South America connections fit our service windows?
- Are the new frequencies backed by committed capacity for our forwarder or customer?
- How will pilot and maintenance costs affect contract repricing or peak-season surcharges?
Read the original reporting
This page provides an original summary and practical commentary. The linked source contains the full reporting. Older stories reflect information available on their published dates.
Read the source at Cargojet / CNW / FreightWaves ↗ (opens in a new tab)