Photo: Cargojet
Freighter operator Cargojet saw its revenues beat the C$1bn mark for the first time in 2024 but the company is expecting a growth slowdown this year.
The Canada-headquartered company’s full-year revenues were up 14.1% year on year to C$1bn, earnings before income tax (ebit) improved 166.3% to C$137.8m and net earnings improved by 190.6% to C$108.4m.
The company said the increase in revenue is primarily due to a C$20.9m increase in domestic network revenues, an increase in ACMI revenue of C$36.5m and an increase of C$58.7m in all-in charter revenues.
The improvement in domestic revenues was primarily fuelled by increases in e-commerce and B2B volumes. Its ACMI revenues improved on the back of a short term deployment of an additional aircraft and extra ad hoc flying.
And charter revenues were up on the scheduled charter services between China and Canada which started during the current year, as well as an increase in ad hoc charters.
Profits were up due to revenues increasing at a higher rate than expenses, which were up by 4.8% for the year.
For the fourth quarter revenues were up 32.1% year on year to C$293.2m driven by charter and ACMI operations.
Looking ahead, the company said: “The growth in the fourth quarter of 2024 reflected a strong recovery from the prior year and indicates the resilience of our diversified business model.
“Management expects this growth to continue in 2025 in each revenue stream although at a slower pace due to the uncertainty surrounding proposed tariffs and potential trade wars and the possible negative impact that this may have on global air cargo demand.”
In terms of fleet, the company has three Boeing 767-300 aircraft that are currently in conversion process and are “progressing as planned” for induction into the fleet in 2025.
The first and second converted freighters are expected to be delivered by the end of the first quarter, and the third converted freighter will be delivered in the third quarter.
The company is also in the process of buying one factory-manufactured freighter that will also be delivered by the end of the first quarter of 2025.
Meanwhile, one leased Boeing 767-200 aircraft will be returned to the lessor at the end of April 2025 to “maintain an optimised fleet level to cover operational requirements, heavy maintenance requirements and additional growth requirements”.
Cargojet also owns feedstock for two additional freighters that are available for conversion to support additional long-term growth, when required.
