Cargojet’s Q2 revenue declines 15%

Canadian air cargo carrier Cargojet , impacted by high capacity and low demand in the second quarter, reported revenue of $CA 209.7 million ($155.5 million), a year-over-year decrease of 14.96%. [caption id="attachment_68387" align="alignright" width="300"] (Photo/Cargojet)[/caption] “To prepare Cargojet to ride the current economic cycle, we shifted our focus to cost management as well as right-sizing our network, while curtailing growth [capital expenditure] and focusing on generating free cash flow,” Cargojet President and Chief Executive Ajay Virmani said in Monday’s earnings report. “Our EBITDA margin of 35.4% in this quarter versus 32.9% [in the] prior year clearly demonstrates that our cost management initiatives are yielding the desired results. “While we expect economic conditions to remain difficult, the shift in consumer spending towards travel and leisure versus goods is expected to normalize towards the end of this year,” he added. Cargojet reported sizeable losses in Q2: EBIT was $22.8 million, down 81.9% YoY; Net earnings were $23.1 million, down 80.7% YoY; and Cargojet flew 16,819 block hours, down 5.9% YoY. Cargojet did not release tonnage figures. The company reported the following figures for the first half of 2023: Revenue was $327.4 million, down 8% YoY; EBIT was $48.5 million, down 47.6% YoY; Net earnings were $45.7 million, down 41% YoY; and Headcount was at1,817 people, up 11.9% YoY. Cargojet also added six freighters, bringing its fleet size to 37 aircraft. The company operates 15 B757-200s, having added five in Q2; four B767-200s; and 18 B767-300s, having added one in Q2. Aramex sees modest revenue decline Logistics and transportation solutions provider Aramex reported Q2 revenue of $378.1 million, down 8% YoY, and H1 revenue of $767.9 million, down 5% YoY. The United Arab Emirates-based company attributed its decreased revenue to “the global industry trend of softening volumes,” according to last week’s earnings report, and to Q2 having fewer working days than Q2 2022 due to the shift of Islamic public holidays. “Reflecting on Aramex’s financial results for the first half of 2023, we performed robustly, despite continued challenges in an environment characterized by cost inflation, lower freight rates, softening shipment volumes and FX [foreign exchange rate] fluctuations,” Aramex Chief Executive Othman Aljeda said in the earnings report. “Therefore, our focus in the second half of the year will remain firmly on cost reduction and further efficiencies.” In the freight forwarding division: Q2 revenue was $97.6 million, down 17% YoY; Q2 airfreight volume was 10,813 tonnes, down 34% YoY; H1 revenue was $202.6 million, down 10% YoY; and H1 airfreight volume was 21,972 tonnes, down 25% YoY. Aramex saw YoY volume increases in sea freight and decreases in land freight for Q2 and H1. “Global sea freight rates declined further this year, driving a shift in volumes from airfreight back to sea freight,” the earnings report stated. In international express, the company saw a 5% YoY reduction in Q2 revenue, handling 7% fewer shipments. In domestic express, the company saw a 6% YoY reduction in Q2 revenue, despite handling 1% more shipments. Oman Air Cargo has impressive H1 Oman Air Cargo reported a 42% YoY increase in cargo volumes in the first half of 2023, primarily driven by capacity expansion, according to the carrier in an earnings statement Sunday. Cargo revenue exceeded $57.9 million; the carrier did not disclose its revenue from H1 2022. “Despite a dip in yield compared to the previous year, the results indicate healthy growth and the carrier’s focus on technology, efficiency and customer service are ensuring it retains its strong position in the market,” Oman Air Cargo said in the earnings statement. Oman’s minister of transport, communications and information technology, Saeed Al Mawali , who also serves as chair of Oman Air , announced a plan last week to restructure the airline. “The program, which will be implemented during the next three to four years, aims to address ongoing losses and the accumulation of debt, and includes four main pillars: financial sustainability, corporate governance, commercial aspects and human capital,” a statement from Oman Air said. The program is based on the recommendations of international management consulting firm Oliver Wyman . No additional details of the program were released. Join Air Cargo Next for its second annual Air Cargo Tech Summit on Sept. 18-19 in Brussels, sponsored by Unisys and Brussels Airport and featuring a fireside chat with Brian Hodges, managing director, American Airlines Cargo. For more details and to register, click here .

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