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Cargojet quarterly profit off 40pc to US$1.9 million, but sales up 13pc

CANADIAN cargo airline Cargojet posted a 39 per cent decline in net profit to C$2.6 million (US$1.91 million) in the first quarter, despite revenues rising 13.3 per cent to C$87.1 million year on year.

"Cargojet continues to focus on growing revenues and maximising cash flows," said Cargojet CEO Ajay Virmani, reports American Shipper. 



"We are very pleased with the results this quarter, as we continue to maximise the utilisation of our aircraft fleet and to prudently manage our operating costs," Mr Virmani said.



The company attributed revenue growth to an increase in core overnight revenues, as well as to a wet lease ACMI (aircraft, crew, maintenance and insurance) contract revenues and increased fuel surcharges. 



The ACMI revenue improvement came after the company added new scheduled daily routes to the US in February last year and additional flights to Colombia, Mexico and Peru that started in June 2016.



In April, Cargojet signed a new three-year AMCI contract route between Canada and the US. Annual revenues from the new contract are expected to be roughly C$11 million, the company said.



The airline flies 1.3 million pounds of cargo every day across North America via 19 all-cargo aircraft.
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