Cargojet Inc. says clogged supply chains and the enduring e-commerce surge helped boost revenue in its latest quarter, despite a net earnings loss.
The company, which provides time-sensitive overnight air cargo services, garnered nearly 17-per-cent year-over-year revenue growth in the quarter ended Sept. 30.
“We believe the massive digital adaptation that took place over the past 1½ years has fundamentally shifted behaviours for consumers,” chief executive officer Ajay Virmani told analysts on a conference call Monday, citing online demand for household items, office supplies and luxury goods.
“Hybrid is the new normal. ... Consumers have discovered that they can efficiently order these items and free up time in their lives to do other things. Cargojet is very closely watching these trends and positioning its business to continue to capture these emerging growth opportunities.”
Supply bottlenecks and freighter and trucking shortages have also boosted demand for the Mississauga-based company’s services, Mr. Virmani said.
Cargojet’s revenue jumped to $189.5-million last quarter compared with $162.3-million in the same period in 2020.
The growth came as Cargojet reported a net loss of $12.9-million, or 74 cents a diluted share, in the third quarter, compared with a loss of $20.4-million, or $1.31 a diluted share, a year earlier.
Adjusted earnings before interest, taxes, depreciation and amortization amounted to $70.9-million for the most recent quarter, up from $69.8-million in the same quarter last year.
Cargojet was among the main beneficiaries of explosive online sales over the past 20 months, expanding its relationship with e-commerce giant Amazon earlier this year.
It enjoyed 21 per cent year-over-year growth in its aircraft leasing revenue to nearly $45-million last quarter.
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