Cargojet sells 2 B777s for $53mn by Q22023 to preserve cash

Cargojet, the all-cargo Canadian carrier, has decided to complete the sale of two Boeing 777-300 aircraft for $53.5 million by early Q22023. “Due to the recent slowdown in the global economy, the company plans to defer the induction of the B777-300 fleet and maintain its financial strength. The B777-300 disposal has no impact on the current operations as the fleet expansion was to expand international reach,” says the management discussion note issued after the announcement of Q42022 and full-year 2022 results. Cargojet reported a 29 percent increase in revenue at C$980 million ($715 million) while EBITDA was up 14 percent at C$396 million ($289 million). Net earnings increased 14 percent to C$191 million ($139 million). For Q42022, revenue increased 13 percent to C$267 million YoY and net earnings dropped over 97 percent to C$2.6 million. “Over the past several years, Cargojet has evolved its business model that is increasingly based on strategic partnerships rather than transactional relationships with its customers,” says Ajay Virmani, President and CEO, Cargojet. “By aligning our long-term commercial interests, we expect greater endurance of volumes with our strategic customers even if global volumes soften during a recessionary period. “The continued global increase in e-commerce demand has produced strong growth in our domestic and ACMI business segments during the quarter. We continue to monitor various macro risks including a potential recession, which may have an impact on consumer spending. As such, Cargojet continues to carefully manage its strategy to match the capacity required with actual customer demand.”