Cargojet Announces Third Quarter Financial Results
Canada's leading air cargo carrier delivers robust profitability and cash flow in a period of unprecedented volatility
MISSISSAUGA, ON, Nov. 4, 2025 /CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT) today announced financial results for the third quarter ended September 30, 2025.
"The resilience of Cargojet's business model was proven this quarter as our core Domestic Network revenue increased by more than 6% year-over-year. Despite near-term macroeconomic headwinds impacting our ACMI and Charter lines of business, we remain optimistic that international trade will stabilize and find new norms in the longer term, and we will continue to pursue new opportunities as a result." said Jamie Porteous, Co‑Chief Executive Officer.
"We delivered a robust EBITDA margin of 32.0% and free cash flow of $152.4 million in the third quarter of 2025, up 219% year-over-year as a result of our disciplined approach to cost and capital management. Our clear focus remains on exceptional reliability and service to our customers, which we believe is the key to long-term success through challenging times," said Pauline Dhillon, Co-Chief Executive Officer. "I want to sincerely thank each of our incredible Cargojet team members who deliver that exceptional customer service every day."
For the third quarter ended September 30, 2025:
- Total revenues were $219.9 million, a decrease of $25.7 million or 10.5% compared to the same period of the previous year, supported by a $5.9 million or 6.3% year-over-year increase in domestic revenue, more than offset by declines in ACMI and Charter revenues driven primarily by macroeconomic conditions.
- Free Cash Flow was $152.4 million, an increase of $104.6 million or 218.8% compared to the same quarter last year primarily driven by an increase in cash flow from operations of $15.9 million and an increase in proceeds from disposal of property, plant and equipment and assets held for sale, net of purchases, of $88.7 million.
- Adjusted EBITDA margin of 32.0%, down 1.5% compared to the same quarter last year, primarily driven by lower net earnings impacted by declines in ACMI and Charter revenues driven primarily by macroeconomic conditions.
- Adjusted EBITDA(1) (earnings before interest, taxes, depreciation and amortization) was $70.4 million, a decrease of $11.8 million or 14.4% compared to the same quarter of the previous year primarily driven by lower net earnings impacted by declines in ACMI and Charter revenues driven primarily by macroeconomic conditions.
- Net earnings of $8.8 million, a decrease of $20.9 million or 70.4% compared to net earnings of $29.7 million for the third quarter of 2024 impacted by declines in ACMI and Charter revenues driven primarily by macroeconomic conditions.
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| THIRD QUARTER RESULTS |
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Financial highlights |
Three Month Periods Ended |
Nine Month Periods Ended |
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September 30, |
September 30, |
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(Canadian dollars in millions, except where indicated) |
2025 |
2024 |
Change |
% |
2025 |
2024 |
Change |
% |
| |
Domestic network, ACMI and charter revenues |
$187.1 |
$205.4 |
($18.3) |
(8.9 %) |
$601.9 |
$577.7 |
$24.2 |
4.2 % |
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Total revenues |
$219.9 |
$245.6 |
($25.7) |
(10.5 %) |
$708.0 |
$707.6 |
$0.4 |
0.1 % |
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Net earnings |
$8.8 |
$29.7 |
($20.9) |
(70.4 %) |
$53.6 |
$37.2 |
$16.4 |
44.1 % |
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Adjusted net earnings(1) |
$4.9 |
$23.6 |
($18.7) |
(79.2 %) |
$45.9 |
$58.9 |
($13.0) |
(22.1 %) |
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EPS Diluted |
$0.58 |
$1.78 |
($1.20) |
(67.4 %) |
$3.46 |
$2.27 |
$1.19 |
52.4 % |
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Adjusted EPS(1) |
$0.32 |
$1.48 |
($1.16) |
(78.4 %) |
$3.00 |
$3.59 |
($0.59) |
(16.4 %) |
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Adjusted EBITDA (1) |
$70.4 |
$82.2 |
($11.8) |
(14.4 %) |
$231.4 |
$239.7 |
($8.3) |
(3.5 %) |
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Adjusted EBITDA margin (1) - (%) |
32.0 % |
33.5 % |
(1.5 %) |
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32.7 % |
33.9 % |
(1.2 %) |
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Net cash from operating activities |
$112.1 |
$96.2 |
$15.9 |
16.5 % |
$204.9 |
$225.0 |
($20.1) |
(8.9 %) |
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Free cash flow (1) |
$152.4 |
$47.8 |
$104.6 |
218.8 % |
$34.0 |
$217.0 |
($183.0) |
(84.3 %) |
(1) Non-GAAP Measures
Below is a description of certain non-GAAP financial measures and non-GAAP financial ratios used by the Corporation to provide readers with additional information on its financial and operating performance. Non-GAAP financial ratios are ratios or percentages that are calculated using a non-GAAP financial measure. Such measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, may not be comparable to similar measures presented by other entities and should not be considered a substitute for or superior to GAAP results.
"Adjusted EBITDA" is used by the Corporation to assess earnings before interest, taxes, depreciation, amortization, share-based compensation, gain or loss on disposal of property, plant and equipment and assets held for sale, fair value write-down of assets held for sale and property, plant and equipment, fair value increase or decrease on stock warrant, amortization of stock warrant contract assets, gain or loss on fair value or settlement of swap derivatives, unrealized foreign exchange gains or losses, gains or losses on settlement of debts, share of gain or loss in associate, and provision for employee pension, as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. The most directly comparable financial measure disclosed in the Corporation's financial statements is net earnings.
"Adjusted EBITDA margin" is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA margin is commonly used in the airline industry and is used by the Corporation as a means to measure the operating margin excluding certain items as described above.
"Free Cash Flow" is used by the Corporation to evaluate its financial strength and performance of its business, indicating the amount of cash the Corporation can generate from operations after capital expenditures. Free Cash Flow is defined as cash flows from operating activities less purchases of property, plant and equipment plus proceeds from disposals of property, plant and equipment and assets held for sale, and insurance proceeds related to these assets.
"Adjusted net earnings" and "Adjusted net earnings per share" ("Adjusted EPS") are used to assess the overall financial performance of its business. Prior to the fourth quarter of 2024, adjusted net earnings and adjusted EPS are defined as net earnings and net earnings per basic share excluding fair value write-down of assets held for sale and property, plant and equipment, fair value increase or decrease on stock warrant, amortization of stock warrant contract assets, gain or loss on swap derivatives, and unrealized foreign exchange gain or loss.
These items are excluded as they may distort the analysis of certain business trends and render comparative analysis to other airlines less meaningful. In the third quarter of 2024, the company updated the definition to further exclude the tax impact of the adjustments where applicable as the net earnings and net earnings per share are also after-tax. Wherever presented, prior periods adjusted net earnings and Adjusted EPS are updated accordingly.
Reconciliations of non-GAAP measures are provided below and in the "Non-GAAP Measures" section of the Corporation's Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") for the three month period ended September 30, 2025, and is available on SEDAR+ at www.sedarplus.ca.
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Nine Month Periods Ended |
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| (Unaudited - Canadian dollars in millions, except where indicated) |
September 30, |
September 30, |
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2025 |
2024 |
2025 |
2024 |
| Calculation of EBITDA and Adjusted EBITDA |
$ |
$ |
$ |
$ |
| Net earnings |
8.8 |
29.7 |
53.6 |
37.2 |
| Add: |
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| Interest |
14.3 |
12.7 |
38.0 |
43.2 |
| Provision of deferred taxes |
0.9 |
6.5 |
8.1 |
23.2 |
| Depreciation of property, plant and equipment |
48.2 |
36.3 |
135.2 |
123.6 |
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| EBITDA |
72.2 |
85.2 |
234.9 |
227.2 |
| Add: |
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| Share-based compensation |
2.1 |
3.4 |
3.3 |
14.1 |
| Gain on disposal of property, plant and equipment |
- |
(0.1) |
(0.9) |
(17.4) |
| Fair value write-down of assets held for sale and property, plant and equipment |
- |
- |
7.0 |
1.1 |
| Fair value adjustment on warrant valuation and amortization of stock warrant contract assets |
(5.5) |
(6.5) |
(18.0) |
35.7 |
| Loss (gain) on swap derivative |
1.6 |
1.1 |
8.9 |
(21.5) |
| Unrealized foreign exchange loss (gain) |
0.6 |
(0.6) |
(1.9) |
1.4 |
| Share of gain in associate |
(0.6) |
(0.3) |
(2.1) |
(0.9) |
| Employee pension |
- |
- |
0.2 |
- |
| Adjusted EBITDA |
70.4 |
82.2 |
231.4 |
239.7 |
| Revenue |
219.9 |
245.6 |
708.0 |
707.6 |
| Adjusted EBITDA margin |
32.0 % |
33.5 % |
32.7 % |
33.9 % |
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| (Unaudited - Canadian dollars in millions) |
September 30, |
September 30, |
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2025 |
2024 |
2025 |
2024 |
| Calculation of Free Cash Flow |
$ |
$ |
$ |
$ |
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$ |
$ |
$ |
$ |
| Net cash from operating activities |
112.1 |
96.2 |
204.9 |
225.0 |
| Purchase of property, plant and equipment (1) |
(67.5) |
(52.2) |
(279.9) |
(113.1) |
| Proceeds from disposal of property, plant and equipment and assets held for sale |
107.8 |
3.8 |
109.0 |
105.1 |
| Free cash flow |
152.4 |
47.8 |
34.0 |
217.0 |
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(Unaudited - Canadian dollars in millions, except where indicated) |
September 30, |
September 30, |
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2025 |
2024 |
2025 |
2024 |
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Calculation of Adjusted Earnings and Adjusted EPS |
$ |
$ |
$ |
$ |
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Net earnings |
8.8 |
29.7 |
53.6 |
37.2 |
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Add: |
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Fair value write-down of assets held for sale and property, plant and equipment |
- |
- |
7.0 |
1.1 |
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Fair value adjustment on stock warrant and amortization of stock warrant contract assets |
(5.5) |
(6.5) |
(18.0) |
35.7 |
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Loss (gain) on swap derivative |
1.6 |
1.1 |
8.9 |
(21.5) |
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Unrealized foreign exchange loss (gain) |
0.6 |
(0.6) |
(1.9) |
1.4 |
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Tax impact on items listed above |
(0.6) |
(0.1) |
(3.7) |
5.0 |
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Adjusted net earnings |
4.9 |
23.6 |
45.9 |
58.9 |
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Weighted average number of shares - basic (in millions of shares) |
15.1 |
16.0 |
15.3 |
16.4 |
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Adjusted EPS |
0.32 |
1.48 |
3.00 |
3.59 |
Notice on Forward Looking Statements:
Certain statements contained herein constitute "forward-looking statements", including with respect to the Corporation's intention to continue rationalizing costs and capital expenditures to generate cash, strengthen strategic customer relationships, and drive shareholder value. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the Corporation's most recent Annual Information Form ("AIF") filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Notes thereto and related MD&A, for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The Corporation cautions that the list of risk factors and uncertainties described in the AIF and MD&A is not exhaustive and other factors could also adversely affect its results. Readers are urged to carefully consider the risks, uncertainties and assumptions in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained herein represents our expectations as of the date hereof (or as the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. In the event that we update any forward-looking statement, no inference should be made that we will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
All references to "$" in this press release are to Canadian dollars.
About Cargojet
Cargojet is Canada's leading provider of time-sensitive premium air cargo services to all major cities across North America, providing Dedicated, ACMI, and International Charter services carrying over 25,000,000 pounds of cargo weekly. Cargojet operates a fleet of 41 freighter aircraft.
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| FINANCIAL INFORMATION AND OPERATING STATISTICS HIGHLIGHTS |
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September 30, |
September 30, |
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2025 |
2024 |
Change |
% |
2025 |
2024 |
Change |
% |
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Domestic network, ACMI and charter revenues |
$187.1 |
$205.4 |
($18.3) |
(8.9 %) |
$601.9 |
$577.7 |
$24.2 |
4.2 % |
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Fuel surcharge and other revenues |
$40.7 |
$44.6 |
($3.9) |
(8.7 %) |
$124.2 |
$145.0 |
($20.8) |
(14.3 %) |
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Total revenues excluding warrant amortization |
$227.8 |
$250.0 |
($22.2) |
(8.9 %) |
$726.1 |
$722.7 |
$3.4 |
0.5 % |
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Amortization of stock warrant contract assets |
($7.9) |
($4.4) |
($3.5) |
79.5 % |
($18.1) |
($15.1) |
($3.0) |
19.9 % |
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Total revenues |
$219.9 |
$245.6 |
($25.7) |
(10.5 %) |
$708.0 |
$707.6 |
$0.4 |
0.1 % |
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Direct expenses |
$190.3 |
$183.2 |
$7.1 |
3.9 % |
$576.1 |
$555.4 |
$20.7 |
3.7 % |
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Gross margin |
$29.6 |
$62.4 |
($32.8) |
(52.6 %) |
$131.9 |
$152.2 |
($20.3) |
(13.3 %) |
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Gross margin - (%) |
13.5 % |
25.4 % |
(11.9 %) |
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18.6 % |
21.5 % |
(2.9 %) |
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Selling, general and administrative expenses |
$17.5 |
$24.3 |
(6.80) |
(28.0 %) |
$57.4 |
$65.3 |
($7.9) |
(12.1 %) |
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Net finance costs and other gains and losses |
$3.0 |
$2.2 |
$0.8 |
36.4 % |
$14.9 |
$27.4 |
($12.5) |
(45.6 %) |
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Share of gain in associate |
($0.6) |
($0.3) |
(0.30) |
(100.0 %) |
($2.1) |
($0.9) |
($1.2) |
(133.3 %) |
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Earnings before income taxes |
$9.7 |
$36.2 |
($26.5) |
(73.2 %) |
$61.7 |
$60.4 |
$1.3 |
2.2 % |
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Income taxes |
0.9 |
$6.5 |
($5.6) |
(86.2 %) |
$8.1 |
$23.2 |
($15.1) |
(65.1 %) |
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Net earnings |
$8.8 |
$29.7 |
($20.9) |
(70.4 %) |
$53.6 |
$37.2 |
$16.4 |
44.1 % |
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Adjusted net earnings(1) |
$4.9 |
$23.6 |
($18.7) |
(79.2 %) |
$45.9 |
$58.9 |
($13.0) |
(22.1 %) |
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Earnings per share |
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Basic |
$0.58 |
$1.85 |
($1.27) |
(68.6 %) |
$3.50 |
$2.27 |
$1.23 |
54.2 % |
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Diluted |
$0.58 |
$1.78 |
($1.20) |
(67.4 %) |
$3.46 |
$2.27 |
$1.19 |
52.4 % |
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Adjusted(1) |
$0.32 |
$1.48 |
($1.16) |
(78.4 %) |
$3.00 |
$3.59 |
($0.59) |
(16.4 %) |
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Adjusted EBITDA (1) |
$70.4 |
$82.2 |
($11.8) |
(14.4 %) |
$231.4 |
$239.7 |
($8.3) |
(3.5 %) |
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Adjusted EBITDA margin (1) - (%) |
32.0 % |
33.5 % |
(1.5 %) |
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32.7 % |
33.9 % |
(1.2 %) |
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Net cash from operating activities |
$112.1 |
$96.2 |
$15.9 |
16.5 % |
$204.9 |
$225.0 |
($20.1) |
(8.9 %) |
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Free cash flow (1) |
$152.4 |
$47.8 |
$104.6 |
218.8 % |
$34.0 |
$217.0 |
($183.0) |
(84.3 %) |
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Operating statistics (2) |
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Operating days (3) |
49 |
49 |
- |
0.0 % |
148 |
149 |
(1) |
(0.7 %) |
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Average domestic network revenue per operating day (4) |
2.03 |
1.91 |
0.12 |
6.3 % |
2.07 |
1.83 |
0.24 |
13.1 % |
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Block hours (5) |
15,861 |
18,928 |
(3,067) |
(16.2 %) |
49,046 |
53,866 |
(4,820) |
(8.9 %) |
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B757-200 |
16 |
17 |
(1.00) |
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16 |
17 |
(1.00) |
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B767-200 |
3 |
3 |
- |
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3 |
3 |
- |
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B767-300 |
22 |
21 |
1.0 |
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22 |
21 |
1.0 |
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Cargo operating fleet |
41 |
41 |
- |
0.0 % |
41 |
41 |
- |
0.0 % |
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Head count |
1,838 |
1,892 |
(54) |
(2.9 %) |
1,838 |
1,892 |
(54) |
(2.9 %) |
| 1. |
Non-GAAP measures. See "Non-GAAP Financial Measures" section. |
| 2. |
The definitions for the Operating statistics included in this table are provided in the notes below. |
| 3. |
Operating days refer to the days on which the full domestic network air cargo network is in operation. The Corporation's domestic network air cargo network operates primarily from Monday to Thursday with a reduced network operating on Friday, weekends and on certain weekdays that are adjacent to certain statutory holidays. |
| 4. |
Average domestic network revenue per operating day refers to total domestic network revenues earned by the Corporation's per operating day. |
| 5. |
Block hours refer to the total duration of a flight from the time the aircraft releases its brakes when it initially moves from the airport parking area prior to flight, to the time the brakes are set when it arrives at the airport parking area after the completion of the flight. |
SOURCE Cargojet Inc.
For further information, please contact investor relations at [email protected]
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