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Cargojet reports higher third-quarter profit and revenue



(Mississauga) Cargojet credits its new strategy for its strong third quarter as the company adjusts to uncertain customer demands while keeping a close eye on the economy.

The Mississauga, Ont.-based company, which provides overnight air cargo services and urgent aircraft rentals, said it would continue to focus on long-term commercial contracts to protect against tighter demand consumers.

The company on Monday reported 20% revenue growth for the quarter ended September 30, as the effects of inflation weighed on consumer demand.

Cargojet will continue to “monitor various macro-risks, including a potential recession, which could impact consumer spending,” Chief Executive Ajay Virmani said in a statement accompanying the results.

The company posted a profit of 83.4 million, compared with a loss in the same quarter a year ago, as demand for e-commerce goods persists.

“As inflation continues to signal a potential recession and lower consumer spending, the company continues to move cautiously forward in its strategy to provide the capacity needed to meet customer demand,” added Mr. Virmani. .

Mr Virmani said he expects “greater staying power” for Cargojet by focusing on long-term business interests, protecting the company even if consumer spending declines as the company enters its fourth quarter and generally the best performer.

Mr. Virmani reported 99.7% on-time performance for the quarter ended September 30.

He said the company “continues to carefully manage its strategy to match required capacity with actual customer demand.”

The result compares with a net loss of 12.9 million or 74 cents per share in the same quarter last year.

Revenues totaled 232.7 million, compared to 189.5 million in the third quarter of 2021.

On an adjusted basis, Cargojet says it earned $2.18 per share, compared to adjusted earnings of $1.39 per share a year earlier.

The company reported net income of $4.77 per share, up $5.51 from the same quarter last year, beating median guidance of $1.74 per share. according to financial data firm Refinitiv.

Cargojet provides air cargo services to major cities in North America with a fleet of 34 aircraft.

The company’s stock price gained more than 5% at 12 p.m., with the stock rising $6.67 to $136.68.

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