Canadian freighter operator Cargojet recorded an increase in revenue in the first quarter and increased the number of B777 conversions it has on order (see below).

The company reported a 45.7% increase in first-quarter revenue to $233.6 million, with strong growth in the all-inclusive charter segment.

The company said the all-in charter segment benefited from strong demand for global airfreight.

The Domestic network posted an increase of 10.3% in its turnover, ACMI posted 36.2% and the charter activity posted growth of 298% compared to the same period last year.

Home network revenue for the quarter represented less than 37% of total revenue, compared to more than 47% for the same period in 2021.

Gross margin for the quarter was C$66.9 million compared to the first quarter 2021 gross margin of C$45.3 million.

Adjusted EBITDA for the quarter was C$83 million, compared to C$64.2 million last year.

Net loss for the quarter was C$56.4 million (net income of C$30.4 million excluding warrant valuation loss) compared to net income of C$89.4 million Canadian dollars in 2021 (net income of 7.5 million Canadian dollars excluding the valuation gain of the warrants).

“Since March 2020, we have constantly adapted to the changing air cargo landscape. Recent geopolitical events have further increased pressure on already strained traditional supply chains, but they are also creating new opportunities for air cargo,” said Ajay Virmani, President and CEO.

“We are keenly aware of the uncertainties and are well placed not only to deal with them, but also to capitalize where new opportunities emerge. The investments we have made in aircraft acquisition, technology and in attracting and retaining top talent are paying off, allowing us to scale the business seamlessly.

In March, DHL Express has entered into a long-term agreement with Cargojet this could potentially see the express company acquire shares in Cargojet. The five-year agreement will see Cargojet supply five additional B767 freighters in addition to the 12 freighters currently used by DHL Express.

Extended B777 command

Cargojet has been designated as the launch customer for Mammoth Freighters B777-200LR freighter conversion program in November 2021. The airline initially signed for two B777-200LRMF freighters, with options for two additional -300ERMFs and two -200LRMFs.

In a management discussion and analysis document for the quarter, it was confirmed that Cargojet had signed agreements for the purchase and conversion of four B777-200s, with delivery dates expected in the fourth quarter of 2023, in the first quarter of 2024, in the third quarter of 2024 and in the fourth quarter of 2024.

The document also confirms that Cargojet has signed agreements for the purchase and conversion of four B777-300 aircraft with delivery dates scheduled for the third quarter of 2024, the third quarter of 2024, the second quarter of 2025 and the first quarter of 2026.

DHL adds additional freighters thanks to Cargojet

Cargojet, launch customer of Mammoth’s B777 conversion program