MIAMI – Canadian freight carrier Cargojet (W8) announced its financial results for the second quarter of this year, which ended on June 30.
As most of the aviation industry is in a severe state due to the COVID-19 pandemic, W8 actually increased their profits. It cites profits at US$196.1m. The carrier’s Q2 2019 revenue was just US$119.1m.
Additionally, the company’s gross margins are up, with Q2 2020 showing US$90.7m compared to Q2 2019’s US$26.6m.
Cargojet Growth During the Pandemic
Cargojet, and similar operations, have benefited from the work-from-home economy that has taken the world by storm in 2020. This situation has boosted the eCommerce market.
Ajay Virmani, the carrier’s President & CEO, said that “Reduced global air cargo capacity, as a result of extremely reduced passenger flights, led to strong ACMI [Aircraft, Crew, Maintenance, and Insurance] growth in International markets that we believe will continue for the short and medium term.”
“We also realized strong ad-hoc international charter revenues operating during the period, providing capacity to bring PPE and other medical supplies back from Asia for various government agencies that may not be recurring,” he continued.
Cargojet Plans for COVID-19
Virmani concluded by saying that the company is “continuing to monitor the impact of COVID-19. However, he believes it will be several quarters before “we fully understand its short and long-term implications.”
“Cargojet continues to show resilience and operating leverage as it handles a significant surge in volumes. At the same time, we are continuing to use increased cash flows to pay down debt and we continue to make investments to ensure that we can participate in the growth opportunities being presenting to us”
Feature Photo: Cargojet Boeing 767-300. Photo: Alvin Man