Canada’s Cargojet Airways reports a third-quarter profit of C$10.5 million ($7.63 million) – versus marking C$83.4 million during the same period last year – amid cooling demand for air cargo. 

The Ontario-based freight carrier said on 7 November that it generated C$214 million in revenue during the period ending 30 September, compared with revenue of C$233 million in the third quarter of 2022. 


Source: Cargojet Airways/X

Cargojet operates a fleet of cargo-converted Boeing 767s and 757s 

“Higher interest rates are starting to impact the household disposable incomes and we are observing a division in household spending,” says Ajay Virmani, the company’s chief executive. ”The volumes for discretionary items are softening but the volumes for essential household goods are holding up well.” 

Virmani adds that the airline is ”prudently trimming capital expenditures” and “working on identifying every cost-saving opportunity”. 

Cargojet flew nearly 9% fewer block hours, year-on-year, in the third quarter. Its expenses rose 3% to C$181 million during the three-month period. 

The carrier reports a quarterly on-time performance of 99.5%. 

Operating a fleet of nearly 40 Boeing 757s and 767s converted for cargo, Cargojet has headquarters near Toronto and an operational base at Toronto-Hamilton International airport. 

The carrier’s jets range in age from 18 to 39 years old, according to Cirium. 

Global freight volumes have been declining in recent months, prompting some cargo carriers to reduce earnings expectations. FedEx Express recently reported that it is “overstaffed” to the point of encouraging pilots to switch to US regional carrier PSA Airlines. The regional airline is dangling a $250,000 signing bonus. 

Meanwhile, Lufthansa Cargo’s third-quarter revenue shrank 40% compared with the same period last year, Germany’s Lufthansa Group said on 2 November.

But there have been positive signs in the Asia-Pacific market, with Emirates SkyCargo recently reporting strong e-commerce demand in the region.