Latest news with #AjayVirmani
Yahoo
4 days ago
- Business
- Yahoo
Cargojet navigates tariff turbulence, maintains revenue growth
Cargojet's core transportation revenue from a domestic Canada overnight network, dedicated contract carriage and charter flights increased 7% year over year in the second quarter amid a rise in U.S.-fueled trade barriers, but management said it is cautiously optimistic it can maintain volumes in the near-to-medium term despite global trade uncertainty. Transport revenue came in at $148.7 million, with a 14% increase in domestic revenue and 22% growth in charter revenues outpacing a 9.6% decline from aircraft-as-a-service contracts, according to results published Wednesday night. The bundled lease business was down 15% in the first quarter. Cargojet (TSX: CJT) said revenue from its domestic network, which co-loads freight from multiple customers in 16 cities, benefitted from e-commerce and B2B growth, as well as rate escalators in customer contracts. Reflecting the economic uncertainty from trade tensions with the United States, domestic revenues were down 2.4% from the first quarter. The decline in revenue from leased aircraft with crews was largely due to lower shipment volumes from Europe amid U.S. tariff threats of up to 50%, but trans-atlantic business constitutes a small portion of overall revenue, the airline said. Adjusted earnings before interest, taxes, depreciation and amortization was $58.3 million, up 1.4% compared to the same quarter the previous year. Management said its adjusted profit margin of 34% was the result of strong operating efficiencies and cost management as flight hours declined 10%. Cargojet posted a smaller net loss of $2.3 million as it used cash to invest in more freighter aircraft. Analysts called the results solid considering the turbulent macroeconomic environment. 'I'm not expecting that this is going to be a huge, huge bumper season. It's a season of adjustments,' Executive Chairman Ajay Virmani told analysts. The company separately announced a long-term extension of its flying contract with DHL Express. Virmani said it made sense to renew the strategic partnership two years early by lowering the share price DHL needs to pay to exercise a stock buy and that motivates DHL to give Cargojet more business so it can reach the revenue target for executing its warrants. The replacement warrants were on the growth side, indicating DHL intends to grow volume and put Cargojet first in line for new business, he explained. 'During tough economic times, consumers often substitute a product with a lower cost item, but we expect the volumes to remain resilient. Our Q2 results clearly demonstrate that such behavior is playing out and that e-commerce is still strong and has a long runway of growth ahead of it in Canada. That said, we did see some weakness in our European ACMI (aircraft, crew, maintenance, and insurance) routes after Liberation Day, but we remain optimistic that after the EU-U.S trade deal and our new DHL agreement, air cargo flows will reemerge in the coming quarters,' said co-CEO Jamie Porteous on Thursday's earnings conference call. Cargo airlines, including Cargojet, might see a spike in parcel volumes this month as shippers rush to beat the United States' Aug. 29 date for ending the de minimis exemption for all nations, which allowed small-dollar shipments to enter the country with no need to pay duties and minimal paperwork, Virmani said. Cargojet said it recently took advantage of market conditions to buy three converted Boeing 767-300s and one factory-built 767-300, the latter of which is scheduled to join the operational fleet this quarter. Cargojet now operates 43 Boeing 767 and 757 freighter aircraft after adding two used 767-300 passenger aircraft this year that were modified to carry cargo containers. A third 767-300 aircraft remains under conversion and is expected to be delivered in the fourth quarter. The company said it will sell two older 767-300 aircraft during the third quarter to improve cash flow and its debt leverage ratio. It will also return an older 767-200 to its lessor in the first quarter of 2026. During the call, management announced that Gord Johnston, who has served as executive president, strategic partnerships, since early 2024, has been promoted to chief commercial officer. The new role will streamline sales processes and generate new revenues by improving capacity utilization in key lanes, including backhaul lanes, by leveraging spot market opportunities and interline relationships with other airlines, co-CEO Pauline Dhillon said. In June, Cargojet hired Aaron McKay, who previously worked at Canadian passenger airline WestJet, as chief financial officer. He replaced Scott Calver, who departed in March. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Write to Eric Kulisch at ekulisch@ RELATED STORIES: DHL moves early to renew Cargojet contract until 2033 New US de minimis policy could trim DHL profit by 3% Rise in China e-commerce traffic lifts Cargojet to record revenue The post Cargojet navigates tariff turbulence, maintains revenue growth appeared first on FreightWaves.
Cision Canada
5 days ago
- Business
- Cision Canada
Cargojet and DHL Solidify Long-Term Strategic Partnership
Agreement Term Extended to 2033 with revenue target of up to C$3.2 billion MISSISSAUGA, ON, Aug. 6, 2025 /CNW/ - Cargojet Inc. (" Cargojet") (TSX: CJT) announced today that it has renewed its strategic agreement (the " Agreement") with DHL Network Operations (USA) Inc., an affiliate of DHL Group (together, " DHL") (XETRA: until March 31, 2033. DHL will have two consecutive renewal options, each for an additional two-year term, potentially extending the term of the Agreement until March 31, 2037. Since commencing its business relationship with DHL in 2005, Cargojet has significantly broadened its service portfolio over the subsequent two decades, enhancing its operational scope and capabilities and turning this into a true partnership. Under the Agreement, Cargojet will offer its entire range of air-transportation services including ACMI, CMI, charter, and aircraft dry lease services to DHL to support DHL's global logistics network. Cargojet currently utilizes a fleet of Boeing 767 and Boeing 757 freighters to service DHL's global requirements. Under this expanded strategic partnership, DHL will maintain a minimum monthly block hours guarantee and provide Cargojet with a preferred opportunity to fly additional routes as it rearranges or adds additional capacity globally. "Securing the confidence of DHL Group underscores the strength of Cargojet's value proposition as a long-term strategic partner. This deepened alliance is a testament to our team's relentless commitment to delivering industry-leading on-time performance and operational flexibility. Their efforts to earn the trust of DHL every single day, continue to position Cargojet as a key enabler of global logistics," said Executive Chairman Dr. Ajay Virmani. "Cargojet is an important strategic partner and delivers high quality, capacity, and flexibility to DHL Express, operating key routes for us into Canada, Mexico, and Latin America. We are pleased to extend our long-standing relationship with Cargojet and look forward to future expansion where mutually beneficial to both organizations" said Travis Cobb Executive Vice President Global Operations and Aviation, DHL Express. In addition, to align interests and strengthen the long-term strategic relationship, Cargojet will fully terminate the warrants to acquire 1,645,000 voting shares issued to DHL in March 2022 and issue warrants (the " Warrants") to acquire up to 1,000,000 (one million) of Cargojet's outstanding voting shares, representing up to 6.63% of Cargojet's shares (on a non-diluted basis as of the date hereof), at a price of C$93.61 per share over a period of eight years, with vesting tied to the delivery by DHL of up to C$3.2 billion 1 in business volume during the same term. About DHL DHL – The logistics company for the world DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With approximately 400,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as "The logistics company for the world". About Cargojet Cargojet is Canada's leading provider of time sensitive premium air cargo services to all major cities across North America, providing Dedicated, ACMI, CMI and International Charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own fleet of all Boeing aircraft. Additional Information Cargojet intends to file a material change report in connection with the transactions contemplated by this news release, which will be available under its corporate profile on SEDAR+ at In connection therewith, a copy of the warrant certificate in respect of the Warrants will be filed with the applicable Canadian securities regulators on SEDAR+. The summary of the key terms of the Warrants contained herein and in the to-be-filed material change report are expressly qualified in their entirety by the full text of the as-filed warrant certificate in respect of the Warrants. The Toronto Stock Exchange has provided conditional approval for the Warrants. In connection with the execution of a non-binding letter of intent between Cargojet and DHL in respect of the Agreement and the Warrants, Cargojet applied to the Toronto Stock Exchange for price protection for the exercise price of the Warrants at a price of C$93.61, representing the 5-day volume weighted average trading price of Cargojet's shares as at June 26, 2025. Notice on Forward Looking Statements Certain statements contained herein constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans", "intends", "anticipates", "should", "estimates", "expects", "believes", "indicates", "targeting", "suggests" and similar expressions, and includes statements relating to, among other things, the availability of Cargojet's air-transportation services including ACMI, CMI, charter, and aircraft dry lease services; the benefits and opportunities to Cargojet resulting from the Agreement including with respect to additional routes and increased capacity; the performance-based vesting of the warrants to be issued to DHL; and the listing of the underlying shares on the Toronto Stock Exchange. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to Cargojet's most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Consolidated Financial Statements and the notes thereto and related Management's Discussion and Analysis, for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The forward-looking statements contained in this news release represent Cargojet's expectations as of the date of this news release and are subject to change after such date. However, Cargojet disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required under applicable securities laws. In the event Cargojet does update any forward-looking statement, no inference should be made that Cargojet will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
Cision Canada
02-07-2025
- Business
- Cision Canada
Cargojet extends Agreement with Amazon
MISSISSAUGA, ON, July 2, 2025 /CNW/ - Cargojet Inc. ("Cargojet") (TSX: CJT) announced the extension of its Air Transportation Services Agreement ("Contract") with Amazon Canada Fulfillment Services, ULC ("Amazon"). The new Contract has a term of additional four years until March 31, 2029 and Amazon will also have the option to renew the Contract until March 31, 2031. "This multi-year Contract underscores Cargojet's role in Amazon's logistics network. At the heart of our success is a dedicated Cargojet team that makes it happen every single day" said Ajay Virmani, Executive Chairman. About Cargojet: Cargojet is Canada's leading provider of time sensitive premium air cargo services to all major cities across North America and select international destinations, providing dedicated, ACMI, CMI and international charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet owns/operates a fleet of 41 aircraft. SOURCE Cargojet Inc.
Globe and Mail
19-06-2025
- Business
- Globe and Mail
Canada is not for sale – and neither are our skies
Ajay Virmani CM is the founder and executive chair of Cargojet. Thursday's recommendations from the Competition Bureau to open Canada's skies to foreign airlines may sound like a pro-consumer move. But beneath the surface, the move risks undermining our aviation industry, threatening Canadian jobs, and handing over control of a vital sector – all without getting a single thing in return. The bureau suggests allowing foreign carriers to fly domestic routes in Canada – a move known as 'cabotage' – and phasing out foreign ownership restrictions entirely. If adopted, these changes would fundamentally alter the aviation landscape in Canada. And not for the better. Watchdog says Ottawa should allow foreign-owned airlines to fly domestic routes to boost competition Let's start with the obvious: There is no reciprocal access. The foreign carriers most likely to cash in on this opportunity will be American ones, because of geography. But the United States, our closest trading partner, does not allow foreign carriers to operate domestic routes. It guards that privilege closely – as does many other major nations. Why, then, should Canada unilaterally open our skies? Competition is healthy – but only when it's fair. We cannot be the only country willing to give away our market while others protect theirs. That's not strategy – that's surrender. Canada is a country of extremes. We are the second-largest nation by landmass, but with a population spread thinly across vast geography. Air travel isn't just a convenience – it's a necessity. But let's be blunt: Canada is not big enough to support even three major airlines as the past two decades have shown. More than 15 carriers – from Jetsgo to Lynx – have gone out of business trying. Foreign airlines, with deep pockets and no long-term obligation to our infrastructure, will swoop in to cherry-pick profitable urban routes – Toronto to Vancouver, Montreal to Calgary – and leave Canadian carriers to subsidize unprofitable regional and remote routes. When the local players fold, who will serve the North? Who will fly to the small towns? Prices will go up, and service will disappear. The impact won't just be felt in boardrooms – it will hit everyday Canadians across the aviation workforce. We're talking about pilots, engineers, mechanics, technology professionals, baggage handlers, call centre teams and support staff. Foreign carriers have no incentive to hire in Canada beyond what's absolutely necessary. Opening the door to foreign dominance means exporting opportunity, experience and expertise – and leaving a skilled Canadian workforce behind. In today's geopolitical climate, the last thing we should do is hand over our aviation sector to foreign ownership. Aviation isn't just another business – it's a strategic asset. In emergencies, natural disasters and national defence, a strong domestic aviation backbone matters. Foreign ownership comes with no such loyalty. If the government truly wants to improve Canadian aviation, it should start with what's in its control: modernize our airports, lower sky-high airport rents and fees, invest in regional infrastructure and overhaul NAV Canada, which operates our civil air navigation system. These structural issues are what make flying in Canada expensive – not a lack of foreign players. Opinion: Stop the charade. Ottawa isn't prepared to do what it takes to improve airline competition Opening the door to foreign carriers without fixing the broken foundation is like inviting guests into a crumbling house and hoping they'll renovate it for you. The promise of cheaper fares is always tempting. But the reality is, foreign carriers will skim the cream off the top – and leave Canadian operators to handle the rest. Once Canadian carriers are weakened or gone, what leverage will we have left? The decisions will be made in boardrooms far away, with no regard for Canadian jobs, service standards, or national resilience. We need smart competition, not blind deregulation. We need policy that supports homegrown carriers and gives them the tools to grow and compete globally. And we need to recognize that our aviation sector isn't just about profits – it's about sovereignty, accessibility and nation-building. Canada is not for sale – and neither are our skies. Let's not let short-term thinking cost us our long-term future.
