Tag Archives: Cargojet

Cargojet and UPS Canada enter into a long-term cargo relationship

Cargojet Airways (Hamilton) has announced the company has entered into a new Air Cargo Service Agreement with United Parcel Service Canada Ltd. (UPS). This Agreement replaces the agreement originally entered into in 2003 to provide domestic overnight air cargo services throughout Canada.

The initial term of the agreement is for a ten-year period with two, three-year renewal options.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,000,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft consisting of 5 Boeing 767-300 ER, 5 Boeing 767-200 ER, 5 Boeing 757-200 and 9 Boeing 727-200F aircraft.

Copyright Photo: Chris Sands/AirlinersGallery.com. Cargojet is one of the last operators of the Boeing 727 in Canada. Boeing 727-223 (F) C-GCJY (msn 22460) departs from Calgary.

Cargojet aircraft slide show:

Cargojet reports an expanded profit for its second quarter

Cargojet Inc. (Cargojet Airways) (Hamilton, ON) has announced its financial results for the second quarter ending on June 30, 2015.

For the Second Quarter Ended June 30, 2015 :

Total Revenues were $75.2 million (all amounts are in Canadian dollars), an increase of $30.9 million or 69.6% versus the previous year

Gross Margin was $7.3 million, an increase of $2.1 million or 39.3% versus the previous year

Adjusted EBITDA before one-time costs was $10.9 million, an increase of $6.5 million or 147.7% versus the previous year. Adjusted EBITDA net of one-time costs was $6.6 million .

Adjusted EBITDAR before one-time costs was $20.0 million , an increase of 115.1% versus the previous year. Adjusted EBITDAR net of one-time costs was $15.7 million .

“Cargojet has successfully completed the integration of its new major customer in 2015, which has contributed to revenue growth in the Quarter,” said Ajay Virmani , President and Chief Executive Officer.

“Overall customer demand for Cargojet’s primary overnight network services and its air cargo charter services were softer than expected in the Quarter and we continue to match capacity to actual demand, in order to keep operating costs in line”, he added.

“One-time costs related to the expansion of our core overnight network that started in March 2015 , for a major customer were in line with our planned expenditures,” he added.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services and carries over 1,000,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft consisting of 6 Boeing 767-300 ER, 3 Boeing 767-200 ER, 5 Boeing 757-200 and 9 Boeing 727-200F aircraft.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Cargojet has been adding wide-body freighters including the pictured former American Airlines Boeing 767-223 (F) C-GCJO (msn 22315) pictured at Winnipeg.

Cargojet Airways aircraft slide show:

Cargojet Airways leases two Boeing 767-200 ERF freighters from Air Transport Services Group

Air Transport Services Group, Inc. (Wilmington, Ohio), the sister company of ABX Air and ATI, has announced it has signed a new agreement with Cargojet Airways (Hamilton, Ontario), Canada’s cargo airline, to lease two Boeing 767-200 ER freighters.

Cargojet currently dry-leases two Boeing 767-200 freighters from ATSG’s subsidiary Cargo Aircraft Management Inc. (CAM) under long-term agreements. Cargojet has signed agreements to dry-lease an additional two Boeing 767-200 freighters from CAM, for up to three years. The first aircraft is expected to be delivered by the end of the second quarter, with the second aircraft delivering early in the third quarter.

Cargojet is currently in the process of a fleet renewal plan. Leasing these two additional 767-200 freighters is part of the company’s current growth strategy. The cargo airline is gearing up its fleet for the upcoming Canada Post/Purolator contract. The airline is also phasing out its Boeing 727 freighter fleet, one of the last operators of the trijet in North America.

Copyright Photo: Reinhard Zinabold/AirlinersGallery.com. Formerly operated by American Airlines, Boeing 767-223 (F) C-FMCJ (msn 22316) is pictured landing at the Hamilton base.

Cargojet:

Air Canada and Cargojet sign a LOI to explore strategic opportunities

Air Canada (Montreal) and Cargojet Airways (Hamilton) today announced they have signed a Letter of Intent (LOI) to explore strategic opportunities in both cargo and airline operations within Canada and in international markets.

The carriers intend to pursue strategic opportunities and increase cooperation in various areas such as global sales and marketing, expanded interline opportunities and enhanced connectivity that would increase revenues and reduce operating costs. Both airlines would work towards providing optimized services to the shipping community on their respective networks.

“We are looking forward to working with Air Canada towards improving the depth and reach of both companies’ air cargo services, both domestically and internationally, among other strategic opportunities,” said Ajay K. Virmani, President and Chief Executive Officer of Cargojet.

“We are very pleased to be in discussions with Cargojet to explore opportunities for revenue growth and synergies that will be mutually beneficial for both our companies and customers,” said Lise-Marie Turpin, Air Canada Cargo Vice President. “Developing further our relationship with Cargojet is an exciting opportunity.”

The implementation of new strategic initiatives would be subject to Air Canada and Cargojet making any necessary filings, obtaining regulatory approvals and finalizing documentation.

Air Canada Cargo provides direct cargo service world wide offering the shipping community business solutions that meet their needs efficiently and cost effectively. Air Canada is Canada’s largest domestic and international airline serving more than 175 destinations on five continents. Canada’s flag carrier is among the world’s 10 largest commercial airlines and in 2012 served close to 35 million passengers. Air Canada provides scheduled passenger service directly to 60 Canadian cities, 49 destinations in the United States and 67 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo services that constitutes over 50 per cent of domestic overnight air cargo capacity. Cargojet operates its network across North America each business night, utilizing a fleet of thirteen all-cargo aircraft.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Cargojet is still an operator of the Boeing 727 but it has also added a Boeing 757-200 and two 767-200 freighters for its longer-range cargo routes. Former Eastern Airlines Boeing 727-225 C-GCJB (msn 21855) waits at Vancouver for the next assignment.

Air Canada:

Cargojet Airways:

Cargojet posts a pre-tax profit of C$4.2 million in the second quarter

Cargojet Inc. (Cargojet Airways) (Hamilton) announced today financial results for the second quarter ended June 30, 2013 (all dollar figures are stated in Canadian dollars) .

For the Second Quarter Ended June 30, 2013:

Total Revenues were $42.7 million , an increase of $2.2 million or 5.4% versus the previous year.
Gross Margin was $6.3 million , a decrease of $0.9 million or 12.5% versus the previous year
EBITDA was $4.2 million , a decrease of $0.3 million or 6.7% versus the previous year

For the Six Months Ended June 30, 2013:

Total Revenues were $83.4 million , an increase of $2.8 million or 3.5% versus the previous year.
Gross Margin was $11.2 million , a decrease of $1.6 million or 12.5% versus the previous year
EBITDA was $6.9 million , an increase of $0.5 million or 7.8% versus the previous year

“Core overnight and charter revenues have shown some upward trends,” says Ajay K. Virmani, President and Chief Executive Officer. “The major challenge we continue to face is the pricing pressures from the marketplace and we will continue to ensure strict cost control and prudent financial management to ensure our margins stay on plan,” he concluded.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 757-236 (F) C-FKCJ (msn 24792) waits for its evening departure from Vancouver International Airport.

Cargojet Airways:

Cargojet earns an operating profit of C$2.7 million for the first quarter

Cargojet Inc. (Cargojet Airways) (Hamilton) announced today financial results for the first quarter ended March 31, 2013 .

For the First Quarter Ended March 31, 2013:

Total Revenues were $40.7 million, an increase of $0.6 million or 1.5% versus the previous year.
Gross Margin was $4.9 million, a decrease of of $0.6 million or 10.9% versus the previous year
EBITDA was $2.7 million (all amounts in Canadian dollars), an increase of $0.8 million or 42.1% versus the previous year

“We are very pleased with the improvement in financial and operating results, as compared to the previous year, despite two less operating days in the quarter”, said Ajay K. Virmani, President and Chief Executive Officer. “We continue to see modest improvements in demand and volumes from all revenue sectors, although overall yields and pricing remain under pressure”. “We will continue to manage our cost prudently and gain efficiencies where available”, he concluded.

Cargojet:

European Routes:

Cargojet is profitable for the fourth quarter and 2012

Cargojet Inc. (Cargojet Airways) (Hamilton) announced today financial results for the fourth quarter and twelve-month period ended December 31, 2012 .

For the Fourth Quarter Ended December 31, 2012:

Total Revenues were $46.4 million , an increase of $3.5 million or 8.2% versus the previous year.
Gross Margin was $8.8 million , an increase of $1.7 million or 23.9% versus the previous year
EBITDA was $5.4 million , an increase of $2.2 million or 68.8% versus the previous year

For the Twelve Months Ended December 31, 2012:

Total Revenues were $168.8 million , an increase of $3.3 million or 2.0% versus the previous year.
Gross Margin was $28.3 million , a decrease of $1.5 million or 5.0% versus the previous year
EBITDA was $16.9 million , an increase of $1.7 million or 11.2% versus the previous year

“We are very pleased with our financial results, as we continue to operate in a challenging economic environment,” said Ajay Virmani, President and Chief Executive Officer. “Lower costs and greater efficiencies have combined with stronger core overnight and charter revenues, to provide for a strong finish to the year,” he added. “We are encouraged by the volume growth in the last half of the year and will continue to focus on new revenue opportunities and continued prudent cost management as we move forward into 2013”.

Copyright Photo: TMK Photography. Cargojet is one of the last cargo operators of the Boeing 727 freighter in North America. Ex-Eastern Boeing 727-225 (F) C-GCJB (msn 21855) taxies at the Hamilton hub.

Cargojet Airways: