With the growth of e-commerce unlikely to stop anytime soon, Cargojet is confident it will continue to deliver strong results.
The Mississauga, Ontario-based airline says revenue growth of more than 10% comes from ever-rising e-commerce demand. Cargojet is Canada’s largest provider of overnight cargo services, mainly carrying e-commerce goods on domestic services. On international routes, perishables and pharmaceuticals are the main goods it handles.
Cargojet handled record volumes to meet demand for online retailer Amazon’s Prime Week, operating an additional 23 flights during the week, and e-commerce is expected to continue to grow.
The airline tells Air Cargo Week: “The long-term will continue to benefit from e-Commerce growth including seven day per week delivery.”
On 31 July, Cargojet released its second quarter results reporting that revenue increased 9.3% to C$119.1 million and adjusted EBITDA was up 30.2% to C$37.5 million.
Commenting on the results, president and CEO Ajay Virmani said: “As the courier industry shifts to 7 days-a-week delivery model to accommodate faster service expectations of e-Commerce retailers, we are uniquely positioned to execute on this new model.
“We are also finding growing synergistic opportunities in our ad hoc and ACMI charter business that is improving fleet utilisation and overall margins.
“At the heart of our strategy is service excellence and I am extremely proud of Cargojet team that continues to exceed customer expectation by delivering unprecedented on-time performance.”