This week saw Cargojet report a dip in its profits, with the expectation that market conditions will continue to remain difficult.
Revenues at the carrier were recorded in the second quarter as $209.7m, which is down from $246.6m that was reported in the same period last year.
Net income has dropped to $31.1m, compared to the net income of $160.9m reported in 2022.
Cargojet CEO: Continuing to be Industry Leaders…
Commenting on the financial results was Dr. Ajay Virmani, the President & CEO of Cargojet:
“To prepare Cargojet to ride the current economic cycle, we shifted our focus to cost management as well as right sizing our network, while curtailing growth CapEx and focusing on generating free cash flow.”
“Our EBITDA margin of 35.4% in this quarter vs. 32.9% prior year clearly demonstrates that our cost management initiatives are yielding the desired results”.
“While we expect economic conditions to remain difficult, the shift in consumer spending towards travel and leisure vs goods is expected to normalize towards the end of this year.”
“The Cargojet team continues to be industry leaders providing a 99.6% on-time performance in the quarter. Our focus remains on delivering exceptional reliability and customer service”.
Not all is bad for the carrier currently, but more work will be needed in order to boost those profits up higher.
As COVID disappears, so does the need for e-commerce and heavy cargo flights, which is what Cargojet is continuing to experience in due course.
All eyes will be on them to see how the remaining two quarters go for them.
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