Cargojet Expands Fleet, Boosts Revenue Amid E-Commerce Boom

Cargojet is reinforcing its fleet with the acquisition of two Boeing 767 passenger aircraft, slated for future freighter conversions, as it capitalizes on booming e-commerce demand.

The Canadian cargo airline currently has two 767s undergoing conversion, with the first expected to complete in Q1 2025 and the second by mid-2025. Additionally, Cargojet has invested in two more 767s to secure inventory for future growth opportunities.

The airline has reported a 10.1% increase in second-quarter revenue, reaching C$230.8 million, up from C$209.7 million in the same period last year.

Adjusted EBITDA rose by 6.5% to C$79.1 million.

Co-CEO Jamie Porteous highlighted the company’s robust performance, attributing it to rising e-commerce sales and increased charter services. “We’ve seen sequential quarter-over-quarter growth largely driven by e-commerce,” said Porteous.

Cargojet’s focus remains on its 767 freighters, despite a decision earlier this year to abandon plans for Boeing 777 conversions due to soft air cargo demand. The company plans to grow its fleet to 43 aircraft by the end of 2025.

Recent hailstorms caused damage to two of Cargojet’s aircraft, but repairs are underway.

The airline’s recent agreement with Great Vision HK Express for scheduled charter flights between Vancouver and China is expected to generate over $50 million annually. This move aligns with Cargojet’s strategy to enhance its presence in the growing e-commerce sector.

Despite a $25-million loss in the second quarter, down from a profit of $31.1 million last year, Cargojet remains optimistic.

Co-CEO Pauline Dhillon emphasized a strong focus on cost control and maintaining EBITDA margins, while Porteous noted, “Our understanding of new and emerging air cargo routes is driving growth, despite geopolitical and economic challenges.”