Cargojet profits drop in fourth quarter
Feb. 27, 2012, Mississauga, Ont. - Cargojet Inc. says it was caught offguard by a decline in volumes in its key overnight cargo services during the fourth quarter as profits plummeted 52.2 per cent.
February 27, 2012 By The Canadian Press
The air freight carrier said earnings dropped to 3.2 million from $6.7 million a year earlier.
However, revenue held steady at $42.9 million.
"The industry experienced an unexpected decline in domestic volumes during the quarter and last half of the year,'' said president and CEO Ajay Virmani.
"Combined with previously granted customer pricing discounts, this resulted in a significant impact on Cargojet's yields.''
Virmani said the company remains cautious about economic uncertainty and plans to move forward with unspecific cost cutting initiatives and pricing changes to boost margins.
Cargojet, with a network of flights across North America, transports time-sensitive air cargo each business night using a fleet of 13 all-cargo aircraft.