CANADA-BASED aircraft lessor Cargojet saw revenues and operating profits improve in the third quarter of the year on the back of increased demand for freighter services and growing e-commerce volumes.
The company reported a 38.2 per cent year-on-year increase in third-quarter revenues to CAD162.3 million (US$124.3 million), while adjusted earnings before interest, tax, depreciation and amortisation (ebitda) were up 99.7 per cent to CAD78.1 million.
However, the company reported a loss of CAD20.4 million against a profit of CAD11.8 million as a result of a CAD47.2 million loss on fair value adjustment of stock warrant obligation. It also continued to pay down debts.
On the improved revenues and ebitda, the company said that it benefitted from a CAD11.7 million increase in domestic network revenues, a CAD21.1 million increase in ACMI revenues and a CAD18 million increase in all-in charter revenues.
Its domestic network benefitted from an increase in e-commerce volumes during the period but was partially offset by a significant decrease in B2B volumes, both as a result of the Covid-19 pandemic, reports London's Air Cargo News.
The e-commerce volumes continued to be significantly higher than previous years while the B2B volumes improved during the quarter and were similar to prior year volumes by end of the quarter as more businesses started to reopen.
Ajay Virmani, president chief executive, said: 'There is no doubt that Cargojet's Domestic Overnight Network continues to benefit from the elevated levels of e-Commerce, but we are equally focused on ensuring that we are building strong long-term growth in our ACMI and Charter businesses. We are also continuing to invest in growth opportunities while prudently strengthening our balance sheet with an overall reduction of CAD92 million in net-debt on a year-to-date basis.
'Although we have been operating at near peak level volumes for the past two quarters, it is vitally important that we do everything we can to support our customers during the upcoming holiday season. As a result, we are deploying additional resources all across our network to ensure that we play our part in delivering a successful holiday season for all our customers.
'We are closely monitoring the changing shopping habits and shipping trends in the domestic and international markets and spending the necessary time to understand and adapt to the new dynamics. While we face some uncertain climate in the near future, we believe the key to success will be resilience and adaptability.'
SeaNews Turkey
The company reported a 38.2 per cent year-on-year increase in third-quarter revenues to CAD162.3 million (US$124.3 million), while adjusted earnings before interest, tax, depreciation and amortisation (ebitda) were up 99.7 per cent to CAD78.1 million.
However, the company reported a loss of CAD20.4 million against a profit of CAD11.8 million as a result of a CAD47.2 million loss on fair value adjustment of stock warrant obligation. It also continued to pay down debts.
On the improved revenues and ebitda, the company said that it benefitted from a CAD11.7 million increase in domestic network revenues, a CAD21.1 million increase in ACMI revenues and a CAD18 million increase in all-in charter revenues.
Its domestic network benefitted from an increase in e-commerce volumes during the period but was partially offset by a significant decrease in B2B volumes, both as a result of the Covid-19 pandemic, reports London's Air Cargo News.
The e-commerce volumes continued to be significantly higher than previous years while the B2B volumes improved during the quarter and were similar to prior year volumes by end of the quarter as more businesses started to reopen.
Ajay Virmani, president chief executive, said: 'There is no doubt that Cargojet's Domestic Overnight Network continues to benefit from the elevated levels of e-Commerce, but we are equally focused on ensuring that we are building strong long-term growth in our ACMI and Charter businesses. We are also continuing to invest in growth opportunities while prudently strengthening our balance sheet with an overall reduction of CAD92 million in net-debt on a year-to-date basis.
'Although we have been operating at near peak level volumes for the past two quarters, it is vitally important that we do everything we can to support our customers during the upcoming holiday season. As a result, we are deploying additional resources all across our network to ensure that we play our part in delivering a successful holiday season for all our customers.
'We are closely monitoring the changing shopping habits and shipping trends in the domestic and international markets and spending the necessary time to understand and adapt to the new dynamics. While we face some uncertain climate in the near future, we believe the key to success will be resilience and adaptability.'
SeaNews Turkey