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.