Cargojet has divested its 25% stake in Miami-based 21 Air LLC, marking a strategic realignment aimed at concentrating resources on its core domestic overnight network, ACMI services, and charter operations.
The decision represents a notable early move under the leadership of Chief Executive Officer Pauline Dhillon, who assumed the role at the beginning of 2026 following the tenure of founder Ajay Virmani. The transaction signals a sharpened focus on strengthening Cargojet’s primary revenue streams while reducing exposure to cross-border operational complexities.
The airline originally acquired its minority stake in 21 Air in August 2021 through Avia Investments LLC, a joint venture involving logistics entrepreneur Jim Crane, who also serves as Chairman and Owner of 21 Air. The divestment now formally ends Cargojet’s equity participation in the US carrier, though both parties are expected to maintain ongoing commercial cooperation.
Cargojet’s decision comes against a backdrop of mixed financial performance in its international segments and sustained strength in domestic operations. In its Q4 2025 results released on February 24, 2026, the company reported a 2.9% year-on-year decline in total revenue to CAD 284.7 million, reflecting broader macroeconomic pressures and softness in certain ACMI and charter markets.
In contrast, domestic overnight services continued to demonstrate strong momentum, growing nearly 17% year-on-year, driven primarily by robust e-commerce demand within Canada. While net income fell by 63% to CAD 26.6 million due to increased financing costs of CAD 37.7 million, adjusted EBITDA rose by 3.6% to CAD 95.0 million, underscoring underlying operational resilience. The carrier currently operates a fleet of 41 freighter aircraft supporting its domestic and international networks.
Strategically, the divestment is widely viewed as an effort to streamline operations and reinforce Cargojet’s positioning in markets where it maintains a clear competitive advantage. By exiting its equity stake in 21 Air, the company reduces exposure to regulatory and labour-related complexities associated with cross-border operations between Canada and the United States.
Labour considerations are also understood to have influenced the timing of the transaction. Reports indicate that pilot contract negotiations at both carriers have added pressure to the existing structure. The Air Line Pilots Association (ALPA), which represents pilots at both companies, has previously raised concerns regarding cross-border arrangements, arguing that certain aircraft leasing and operational structures may conflict with US regulatory frameworks governing domestic air services.
With Cargojet’s pilot agreements scheduled for renewal in June 2026, industry observers note that the divestment may help simplify labour dynamics ahead of negotiations, reducing potential friction between stakeholders.
Despite the change in ownership structure, Cargojet and 21 Air will continue to maintain commercial ties. As of April 2026, 21 Air is understood to lease multiple Boeing 757 and 767 freighters from Cargojet, a relationship expected to persist under revised commercial terms independent of equity ownership.
The strategic exit underscores Cargojet’s renewed focus on consolidating its leadership in the Canadian overnight express market, while optimizing capital allocation toward high-performing domestic and ACMI segments.
