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Overnight deliveries, contract carriage propel Cargojet’s Q3 growth

Overnight deliveries, contract carriage propel Cargojet’s Q3 growth

Eric Kulisch
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Cargojet benefitted from a hot airfreight and e-commerce market in the third quarter. (Photo: Cargojet)

Cargojet (TSX: CJT), riding the tailwind of a hot airfreight market, generated a 38.5% increase in revenue and a 49% jump in gross margin during the third quarter compared to the same 2019 period.

The Toronto-based company said revenues increased to CA$162 million (US$121.9 million) and gross margin hit CA$58.3 million as its fleet of 27 freighters operated at near-peak volume moving e-commerce packages and other shipments. It said volumes and flying hours are at all-time highs.

Adjusted EBITDA doubled to CA$78 million.

Cargojet, with customers that include DHL Express, said it generated $59.3 million in free cash flow during the third quarter, allowing it to pay down debt. So far this year it has reduced debt by $92 million.


The contract carrier said its domestic overnight business is extremely strong but that it is also busy with extended charters for airlines and other large customers.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He won Environmental Journalist of the Year from the Seahorse Freight Association in 2014 and was the group's 2013 Supply Chain Journalist of the Year. In December 2022, Eric was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at [email protected]