Cargojet predicts ‘significantly stronger’ second half of the year on growth in e-commerce sales

MISSISSAUGA, Ontario — Cargojet Inc.’s CEO says growing e-commerce demand will drive strong business gains in the second half of the year after revenue rose in the last quarter.

Jamie Porteous, co-CEO of the air freight company, told analysts today that the rest of 2024 will be “significantly better” than the first six months due to recovering online sales.

He says Cargojet’s revenue growth of about 10% year-on-year in the second quarter stands out against the backdrop of the general economic slowdown.

Porteous says the full impact of a three-year agreement signed in June with Chinese company Great Vision HK Express to operate scheduled charter flights between Vancouver and China will increase annual revenue by more than $50 million a year, with demand continuing to grow.

Market research firm Emarketer forecasts that Canadian e-commerce retail sales will grow by 6.8 per cent in 2024.

Porteous says Cargojet plans to increase its fleet to 43 planes by the end of next year, up from 41 currently.

This report by The Canadian Press was first published Aug. 14, 2024.

Companies in this article: (TSX:CJT)

Canadian Press