Cargojet Sees Total Revenue Slightly Down in Q1 2024

A Cargojet 767 freighter approaches to land.
Colin Cooke Photo, CC BY-SA 2.0, via Wikimedia Commons

Cargojet Inc. released its financial results for the first quarter ended March 31, 2024. Overall revenue remained relatively flat at $231.2 million compared to $231.9 million in the same period last year.

However, there were positive signs within the breakdown. Revenue from the company’s core domestic network, ACMI (Aircraft, Crew, Maintenance, and Insurance), and all-in charter services increased to $181.0 million from $169.9 million in Q1 2023.

Profitability Improvement

Profitability also showed improvement. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to $78.4 million. This compares to $75.0 million in the first quarter of 2023.

Net earnings were $32.5 million, with $20.8 million excluding warrant valuation and contract asset amortization. This compares favorably to net earnings of $30.5 million in Q1 2023 ($9.8 million excluding adjustments).

Strong Cash Flow

A bright spot for Cargojet was its strong cash flow generation. The company reported a free cash flow inflow of $168.7 million for the quarter, a significant increase from $15.2 million in the same period last year.

Net cash generated from operating activities also rose, reaching $80.3 million compared to $63.1 million in Q1 2023.

A Cargojet converted freighter lines up on the runway.
MarcelX42, CC BY-SA 4.0, via Wikimedia Commons

‘Cautious Optimism’

Cargojet co-CEO Jamie Porteous commented on the results, acknowledging the flat revenue while highlighting margin improvements due to fleet and flight schedule optimization, along with volume growth.

He expressed cautious optimism, tempered by global uncertainties and potential supply chain disruptions.

Porteous emphasized the importance of the company’s strong cash flow generation for executing strategic priorities.

Co-CEO Pauline Dhillon focused on the company’s ongoing efficiency efforts. Streamlined maintenance, optimized schedules, and improved shift management are leading to cost reductions.

Additionally, disciplined procurement is yielding savings in key expense categories. Dhillon praised the company’s strong culture of cost discipline.

Dhillon concluded by reiterating Cargojet’s commitment to customer success, evidenced by its industry-leading on-time performance. She emphasized the dedication of the company’s team as the backbone of its success.

Photo: Cargojet C-GYAJ By Atlantic Aviation Media -, CC BY 2.0,
Photo: Cargojet C-GYAJ By Atlantic Aviation Media

About Cargojet

Cargojet Inc. (TSX: CJT) is a leading Canadian provider of time-sensitive overnight air cargo services. With its headquarters in Mississauga, Ontario, Cargojet operates a fleet of Boeing long-range freighters, connecting major international destinations and offering domestic scheduled cargo services across 15 Canadian cities.

The company prides itself on exceptional on-time performance, reliable service, and a commitment to safety. They offer various services including:

  • Domestic Network: Scheduled cargo flights within Canada
  • ACMI (Aircraft, Crew, Maintenance, and Insurance): Leasing of entire aircraft with crew and support services
  • All-in Charters: Customized air cargo charters for specific needs

Cargojet is a public company with over 1,650 employees and plays a vital role in facilitating global trade by keeping essential goods and products moving efficiently.

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By Len Varley - Assistant Editor 4 Min Read
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