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Cargojet charter demand jumps 60% on e-commerce, supply chain delays

Canadian airline says peak season shipping volumes strong so far

A Boeing 767 converted freighter operated by Cargojet approaches London Heathrow Airport. (Photo: Shutterstock/Abdul N Quraishi - Abs)

Revenue at Canadian freighter operator Cargojet grew 14.8% during the third quarter from the prior year behind a wave of demand for charter flights from Chinese e-commerce sellers as well as businesses that diverted ocean and commercial passenger shipments to avoid potential delays from supply chain disruptions.

Cargojet (TSX: CJT) said total revenue was $176.6 million, with international charter revenue from customers paying an all-inclusive fixed fee per flight jumping 60% to $29.8 million despite one fewer operating day than last year. Charter revenue, both nonroutine and scheduled, grew more in absolute ($11.2 million) and percentage terms than from the airline’s overnight domestic network or dedicated contract flying for customers such as DHL Express. Adjusted earnings before interest, taxes, depreciation and amortization increased 17.4% to $59.1 million.

Flight hours during the third quarter grew by nearly 15% with no change in fleet size. Cargojet operates 41 Boeing 757, 767-200 and 767-300 freighters converted from passenger configuration.

Co-CEO James Porteous said on Tuesday’s earnings call with analysts that increased charter business resulted from shippers seeking transport alternatives to ocean carriers and passenger aircraft because of capacity constraints caused by the Ukraine and Middle East conflicts, and fears of container backlogs from a port workers’ strike on the U.S. East Coast – which ultimately was short-lived. Cargojet has also increased the number of trans-Pacific flights operated on behalf of e-commerce logistics provider Greater Vision HK Express to five or six per week since service started in May. The number of frequencies will fall back to three again after the peak season.


Cargojet operates a domestic overnight network among 16 major Canadian cities, with space shared among a range of customers. The segment’s 5.2% revenue growth was attributed to increased e-commerce and B2B volumes, and inflation-adjusted rates for contractual customers.

“The improving interest rate environment and controlled inflation are fostering a more stable and optimistic economic outlook for Canada, which we believe bodes well for future domestic volumes,” Porteous added. The majority of customers have presented stronger volume forecasts for the current peak season leading up to the holidays. 

Cargojet incurred one-time startup costs for spare aircraft, maintenance, crew and ground handling in support of the extra charter bookings. New management hires, higher labor rates for pilots, overtime payments for pilots and spare parts costs, offset by depreciation of aircraft, also contributed to a 1.5% increase in overall expenses during the quarter.

The all-cargo carrier continues to invest in its fleet to capitalize on growth opportunities, which are greater in the wake of decisions this year by Air Canada to park two 767-300 freighters and WestJet to shut down its scheduled network after less than a year because of insufficient customer interest. WestJet has switched to a new business model that involves renting two of its four Boeing 737-800 narrowbody freighters to airlines and logistics companies that need dedicated capacity. FreightWaves previously reported that Cargojet has hired WestJet to operate its daily service between Newark International Airport in New Jersey and Bermuda. 


Two Boeing 767-300 freighters are currently undergoing conversion at an overhaul facility, with deliveries expected in the second and third quarters of 2025, Porteous said. One of the new aircraft will be used to replace a 767-200 on a lease that will expire in February. The other cargo jet likely will be reserved for new requests for e-commerce charters. Cargojet has also acquired two 767 passenger aircraft that could be sent for conversion as dictated by demand. 

Executive Chairman Ajay Virmani said Cargojet’s dominant position in Canada gives it more pricing power for charter service, but on international routes it isn’t able to charge as much because U.S. carriers such as FedEx, UPS, Atlas Air and Kalitta are also marketing their excess capacity.

Click here for more FreightWaves/American Shipper articles by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He won Environmental Journalist of the Year from the Seahorse Freight Association in 2014 and was the group's 2013 Supply Chain Journalist of the Year. In December 2022, Eric was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com