Cargojet Reports $275.8M Q2 Revenue and 99.2% On-Time Performance
Cargojet delivered adjusted EBITDA of $87.3 million in Q2, driven by strong charter demand and a 26% wage settlement with pilots.
Key points
- Cargojet achieved adjusted EBITDA of $87.3 million and free cash flow of $56.2 million in Q2 2026.
- The company signed a five-year pilot agreement featuring a 26% wage increase and productivity gains.
- On-time performance held at 99.2%, supported by strong demand on international routes like Liege and Tel Aviv.
Cargojet Inc. reported second-quarter revenue of $275.8 million and adjusted EBITDA of $87.3 million, showing improvement both sequentially and year-over-year. The Toronto-based air cargo carrier maintained an industry-leading on-time performance rate of 99.2%, a metric management credits to its one-fleet strategy that allows dynamic deployment of aircraft across the network.
Despite headwinds from elevated fuel costs and geopolitical uncertainty, the company generated free cash flow of $56.2 million. This liquidity position enabled Cargojet to reduce its leverage ratio to 2.6 times, reinforcing its balance sheet while continuing to invest in operational efficiency.
Labor costs align with market standards
A newly completed five-year pilot agreement includes a 26% wage increase alongside productivity improvements. This contract helps align compensation with broader market standards while securing labor stability for the coming years. Management noted that this resolution removes a key uncertainty from the cost structure.
International routes drive revenue growth
The domestic overnight network and charter business segments contributed significantly to the quarter's results. Specific international routes, including those serving Liege and Tel Aviv, provided strong revenue contributions. Cargojet’s ability to pivot capacity toward these high-demand international corridors demonstrated the flexibility of its fleet utilization model.
Guidance remains cautious amid global uncertainty
Forward guidance reflects a cautious outlook due to ongoing global economic uncertainties. However, the company remains optimistic about growth opportunities, particularly in international markets where demand for time-sensitive freight remains robust. According to the transcript provided by benzinga.com, management continues to prioritize revenue quality and disciplined cost control in its strategic planning.
