More 767 freighters for Cargojet

Canada-based all-cargo operator Cargojet has begun expanding its fleet in preparation for servicing the Canada Post/Purolator contract it won this spring, and which will go into effect 1 April next year.

When the contract win was announced in late February, we predicted that Cargojet – which had already begun replacing its 727 freighters with 757-200Fs – would also acquire more 767 freighters. Six weeks later it has done exactly that. US-based Air Transport Services Group (ATSG) announced last night that Cargojet had agreed to lease two 767-200Fs from ATSG’s leasing subsidiary, Cargo Aircraft Management (CAM). The leases will begin in the second and third quarters of this year, “for terms of up to three years.”

Cargojet currently operates nine 727-200Fs, three 757-200Fs, and two 767-200Fs from its hub at John C. Munro International Airport (YHM) in Hamilton, Ontario. Cargo Facts believes that the carrier will add more 767 freighters (including -300Fs) and also continue replacement of its 727s with 757s, but no announcements have been made regarding source or timing.

In related news, ATSG confirmed that it had reached an agreement to lease two 767-300BDSFs to US-based carrier Amerijet, and take back early one of the two 767-200Fs Amerijet currently leases (click here for our report on Amerijet’s fleet expansion and the launch of its US domestic expedited heavy freight service).

The announcements from ATSG came as part of the company’s release of first-quarter results. We will analyze those results here on tomorrow, but briefly, net income was down 21% to $7 million as net revenue from customers stayed flat with 1Q13 at $144 million. The decline in net income was due to “a $4.1 million increase in depreciation and amortization expense stemming from the addition of more modern aircraft to ATSG’s fleet, [which] offset decreases in other operating expenses.”

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