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Cargojet beats expectations as it swings to $102M profit in Q4 on surge in revenues

Canadian Press - Mon Mar 7, 10:54AM CST
A flight arrives at Vancouver International Airport in Richmond, B.C. Wednesday, March 18, 2020. THE CANADIAN PRESS/Jonathan Hayward

MISSISSAUGA, Ont. — Cargojet Inc. swung to a $102-million profit in the fourth quarter as revenue surged 26.1 per cent on increased demand for its domestic, charter and other aircraft services.

The Mississauga, Ont.-based provider of time-sensitive air cargo services says it earned $5.70 per diluted share in the quarter, compared with a loss of $1.31 per share or $20.5 million a year earlier.

Revenues for the three months ended Dec. 31 were $235.9 million, up from $187.1 million in the fourth quarter of 2020.

Analysts on average expected Cargojet to earn $1.70 per share on $211.9 million of revenues, according to financial data firm Refinitiv.

For the full-year, Cargojet earned $167.4 million or $9.51 per diluted share on $757.8 million of revenues, compared with a loss of $87.8 million or $5.63 per share on $668.5 million of revenues in 2020.

Matthew Lee of Canaccord Genuity Corp. says the strong quarterly results were driven by continued adoption of e-commerce, a recovery in B2B and added ACMI (aircraft, crew, maintenance and insurance) routes to western Canada that started in October.

"As we begin to prepare for the post-pandemic world, Cargojet now has a substantially larger base of business to build upon compared with its pre-pandemic size and scale," said CEO Ajay Virmani in a news release.

Cargojet carries more than 11 million kilograms of cargo weekly on its fleet of 31 aircraft.

This report by The Canadian Press was first published March 7, 2022.

Companies in this story: (TSX:CJT)