Aircraft lessor Cargojet recorded a double-digit percentage improvement in revenues during the third quarter of the year on the back of its overnight and charter business.
The Canadian company saw third-quarter revenues increase by 27.6% year on year to C$114.1m, adjusted ebitda was up 24% to C$31.5m and net earnings stood at C$4.7m, down 16.1% on a year earlier.
The company said the increase in total revenues was due primarily to an $8.3m increase in core overnight revenues, a $5.6m increase in all in charter revenues and a $9.3m increase in fuel surcharges on the back of higher volumes and other cost pass-through revenues.
The increase in its core overnight business was due to increased traffic from existing customers and contractual annual price increases. All-in charter revenues were up primarily due to additional flights between Canada, Colombia and Peru and between Canada and Europe.
Meanwhile, adjusted ebitda improved thanks to the volume growth and the buyback of three B757-200 aircraft operating leases.
Cargojet president and chief executive Ajay Virmani said: “Cargojet continues to successfully execute its financial and operational plan.
"Our team continues to optimize our network and fleet as we adapt to our growth as the leading e-commerce middle-mile service provider in Canada. We also continue to expand our air cargo footprint around the world through our scheduled and adhoc ACMI and charter services."
The company also announced the closing of the issue and sale of an additional $11.25m aggregate principal amount of 5.75% listed senior unsecured hybrid debentures.
This is in connection with its recently completed $75m aggregate principal amount of debentures.
Cargojet intends to use the net proceeds from the closing of the over-allotment option to pay down the its revolving credit facility that has been drawn to support engine and aircraft purchases, and to free up capacity to fund anticipated capital expenditures, including aircraft, in the future.
