Cargojet invests in more 767s as Q2 revenue climbs 10%
Cargojet has reaffirmed its commitment to enhancing its fleet of Boeing 767 freighters by acquiring two additional passenger aircraft for future conversion. This move comes as the Canadian cargo airline continues to focus on expanding its 767 freighter operations.
The airline disclosed that it currently has two Boeing 767s undergoing conversion from passenger to freighter configurations, with the first conversion expected to be completed in early 2025 and the second by mid-2025. In addition, Cargojet has invested in two more 767 passenger aircraft to ensure a steady supply of feedstock for future growth opportunities.
In its management discussion document for the second quarter, Cargojet outlined its strategic investments and operational adjustments. “Cargojet currently has two B767 passenger-to-freighter conversions in process,” the document stated. “The expected completion date for the first conversion is in the first quarter of 2025, while the second is anticipated to be finished by mid-2025.”
The airline also noted its intention to retain its Boeing 757 freighters due to their increased utilization. In June, Cargojet launched a scheduled charter service focusing on e-commerce between Hangzhou and Vancouver, using Boeing 767-300 freighters for logistics firm Great Vision HK Express.
“We have reengineered our schedules to optimize the use of 767-300 aircraft for our China charter program, which has increased the utilization of our 757 fleet and eliminated any surplus of 757 aircraft,” the airline explained.
Cargojet reported a 10.1% year-over-year increase in revenue for the second quarter ending June 30. The company’s total revenue reached CAD 230.8 million, up from CAD 209.7 million in the same period last year. Domestic network, ACMI, and charter revenues contributed CAD 191.3 million, marking an 11.5% rise. Adjusted EBITDA for the quarter was CAD 79.1 million, a 6.5% increase.
Jamie Porteous, co-chief executive of Cargojet, emphasized the company’s adaptability and strategic focus: “Cargojet continues to identify and execute on opportunities in the fast-changing global supply chains. Our recent launch of a charter service for China-based e-commerce brands illustrates our understanding of emerging air cargo routes.”
Pauline Dhillon, co-chief executive, highlighted the company’s cost control and performance: “Our focus on managing costs and maintaining strong EBITDA margins has resulted in another robust quarter. We remain leaders in on-time performance, flexibility, and customer value.”
Earlier this year, Cargojet announced a strategic shift away from plans to operate Boeing 777 freighters due to ongoing soft demand in the air cargo market. The airline decided to abandon the conversion of four Boeing 777-200s, adjusting its strategy to concentrate on its 767 freighters while retaining the option for future 777 conversions.
As of June 20, Cargojet’s fleet comprised 41 aircraft, including 21 Boeing 767-300 freighters, three 767-200 freighters, and 17 757-200 freighters.
