Cargojet back in the black for Q1

Canada-based CargoJet reported a net profit of US$34 million during Q1 of 2016, representing its first quarterly profit after more than two years of losses. During fiscal year 2015, the company reported a net loss of $14 million from start-up costs associated with its $1 billion overnight contract with Canada Post.

In Q1 2016, investments finally began to pay off as Cargojet saw net revenues jump 42.1 percent, year-over-year, to $60 million. Earnings-before-interest, tax, depreciation and amortization (EBITDA), meanwhile, grew to $18.1 million, up from a loss of $775,600 during Q1 2015.

“Our financial and operating results for the quarter were very strong, as we complete the first full transformational year of our business,” said Ajay Virmani, president and CEO. Noting limited organic growth opportunities in Canada, Virmani added, “We are focused on seeking new revenue opportunities and to managing our operating costs by prudently matching capacity to meet actual demand.”

Last month, Cargojet announced it would ACMI-lease and operate 767-300Fs on Air Canada Cargo’s behalf, and serve routes between Toronto and destinations in Latin America and Europe.