Freighter airline Cargojet saw revenues increase during the first quarter of the year but income was down.The Canadian airline saw first-quarter revenues improve by 13.3% year on year to C$87.1m, but earnings before taxes for the period declined by 35.6% on a year earlier to C$3.8m and net earnings dropped to C$2.6m from C$4.4m last year.
The company was keen to emphasise its adjusted performance, which at the earnings before interest, tax, depreciation and amortisation level increased 28.2% year on year to C$22m.The company said that the revenue increase was due to an increase in overnight revenues, its ACMI 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.The core overnight revenue increase was from contractual rate increases and improved demand from existing customers.Last year, the company’s ‘other losses/gains’ totalled a gain of $C6m compared with a $C100,000 loss this year. This was down to the extinguishment of debt and a decrease in gains from foreign exchange.The company said the improvement in its adjusted performance was down to the gains made in the ACMI and core overnight businesses, improved margins, the elimination of start-up costs related to the Canada Post contract and the conversion of a B757-00 aircraft from operating lease to finance lease.“Cargojet continues to focus on growing our revenues and maximizing cash flows” said Ajay Virmani, president and chief executive officer. “We are very pleased with the results this Quarter, as we continue to maximize the utilization of our aircraft fleet and to prudently manage our operating costs.” he added.
The company has recently launched freighter services from from Canada to Latin America via the US in partnership with Air Canada.Cargojet and Air Canada have also launched a new freighter service to Europe.