Cargojet to remove two 767-300Fs from fleet

Cargojet plans to sell two of its older 767-300 freighters in the third quarter to increase its cash flow while committing to adding another converted 767-300F in 2026. Cargojet signed letters of intent in June to sell the two 767-300Fs and to buy the converted 767-300 freighter for delivery in Q1 2026, the airline said in its Q2 earnings report on Aug. 6. [caption id="attachment_57290786" align="aligncenter" width="890"] Cargojet acquired unit 30780 from Jetran. (Courtesy/Cargojet)[/caption] 767 movements Removing the two older units reduces Cargojet’s fleet projection to nineteen owned 767-300 freighters by yearend, according to the carrier’s latest fleet table. The 767s to be sold are the 1996-vintage units 26327 and 27597, the only PW4000-powered 767s in Cargojet’s fleet, founder and Executive Chairman Ajay Virmani said during today’s earnings call with analysts. The carrier’s other 767-300 conversions range from 1988-vintage to 1999-vintage and have CF6 engines. Cargojet said it planned to add four more 767-300Fs in 2025 in its Q4 2024 earnings call in February. In Q2, the Canadian carrier put into service a pair of 1999-vintage 767-300BDSFs (29383, ex-Condor, and 29617, ex-TUI Airways) it acquired from CAM in 2024. Unit 29617 entered service in May, while unit 29383 began operating the following month. Cargojet’s first production 767-300F (30780, ex-LATAM) will start flying in Q3, according to the fleet table. The airline reached an agreement with Horseshoe Bay, Texas-based aircraft trader Jetran to acquire unit 30780 at the end of 2024 after Jetran bought the 2000-vintage production 767-300F from LATAM in October that year. Another 767-300 freighter under conversion will join the fleet in Q4, Cargojet said. Separately, in June, Cargojet reached a sale-and-leaseback agreement with an unspecified lessor on two 767-300 freighters it will continue to operate. The deal includes a purchase option for both units in 2030. Supporting DHL At the end of the quarter, Cargojet extended its long-term agreement with DHL Network Operations (USA), an affiliate of DHL Group, to provide ACMI, CMI, charter and aircraft dry lease services until March 31, 2033. DHL has two options to renew the deal, each for two more years. As part of the deal, Cargojet is canceling warrants it granted to DHL in 2022 to acquire 1.6 million voting shares and replacing them with new warrants to acquire up to 1 million voting shares for CA$93.61 ($68.06) per share over eight years. The warrants represent up to 6.63% of Cargojet’s shares and will vest upon DHL delivering up to $2.3 billion in business volume during the eight years, according to Cargojet. A 1993-vintage 767-300BDSF (25449) and a 1994-vintage 767-300BDSF (27212) in Cargojet’s fleet are painted in DHL’s livery, but the airline also operates its other 767s and 757s to support the express integrator. Cargojet also extended a CMI arrangement with Amazon in July involving two 767-300BDSFs. That deal runs through March 31, 2029, but Amazon can extend it for two years. Second-quarter earnings Cargojet reported a loss in free cash flow of $72.5 million in Q2, whereas the company had reported positive free cash flow in the corresponding quarter last year. This reversal drives the need to build up Cargojet's maintenance spares inventory to support heavy maintenance repairs on the aircraft it operates, according to the results. The airline expects to increase available cash flow in the third quarter with the sale of the two older 767-300Fs, it said. The carrier reported $11.4 million in Q2 adjusted net earnings, up 124.3% YoY. Cargojet also reported in Q2: Total revenue of $173.3 million, up 3.2% YoY; Adjusted EBITDA of $58.4 million, up 1.4% YoY; and Diluted earnings per share of a loss of 15 cents, an improvement from a loss of $1.11 in Q2 2024. Shares of Cargojet ( TSX: CJT , OTCMKTS: CGJTF ) were flat from market open at $71.82 as of market close today. Cargojet has a market capitalization of $1.16 billion. Editor’s note: All amounts have been converted to U.S. dollars. Cargo Facts Symposium, the quintessential event for stakeholders and key leaders in the global freighter and air cargo industries, will take place Oct. 22-24 at the Grand Hyatt in Nashville . Learn more and register today to take advantage of the early-bird rate before Sept. 5.

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