Cargojet Inc. beat revenue expectations in its second quarter despite falling e-commerce demand, as the air cargo outfit seized on the mess of delays plaguing passenger airlines — which also carry freight onboard — to shore up business.
The company, which provides time-sensitive overnight air freight services as well as aircraft leases, garnered year-over-year revenue growth of 43 per cent to $246.6 million in the three months ended June 30 versus a net loss of $11.1 million in the same period last year.
Cargojet reported net income of $160.9 million last quarter versus a net loss of $11.1 million a year earlier.
Revenues beat expectations by nine per cent, while adjusted earnings per share of $1.51 surpassed those of $1.36 per share from the previous year but fell slightly short of median forecasts of $1.59 per share, according to financial data firm Refinitiv.
CEO Ajay Virmani says turmoil at airports across the globe has left the cargo business an “orphan” as large passenger airlines scramble to focus their resources on travellers, clearing the runway for dedicated air freight companies to pick up the cargo slack.
Chief financial officer Scott Calver says Cargojet remains “bullish” on online shopping’s long-term growth even as e-commerce sales decline and customers flock back to brick-and-mortar stores.
This report by The Canadian Press was first published July 27, 2022.
Companies in this story: (TSX:CJT)