Cargojet’s contract with Canada Post finally started to pay dividends in the first quarter of this year as the company returned to profit.
The Canada-based aircraft lessor and operator saw first quarter revenues increase by 42.1% year on year to C$76.9m, while it recorded a net profit of C$4.4m compared with a C$8.3m loss last year.
Earnings before interest, tax, depreciation and amortisation went from a loss of $1m last year to a $23.4m profit during the first quarter of 2016.
Last year’s performance was affected by one-off start of costs associated with winning the Canada Post contract.
“Our financial and operating results for the quarter were very strong, as we complete the first full transformational year of our business." said Ajay Virmani, president and chief executive.
“Although Canadian economic indicators continue to limit organic growth, we are focused on seeking new revenue opportunities and to managing our operating costs by prudently matching capacity to meet actual demand.” he added.
The Canada Post contract resulted in a 56.1% increase in volumes during the period. Last year, Cargojet recorded an C$18m loss.
In April, Cargojet announced a deal to operate a freighter service between Canada and South America on behalf of Air Canada.
