Profit plunge: Cargojet feels pain of trade war

A Cargojet plane sits on the tarmac at the John C. Munro Hamilton International Airport in Hamilton, Ont., Friday, Feb. 23, 2024. THE CANADIAN PRESS/Nick Iwanyshyn

MISSISSAUGA — Cargojet Inc. is reporting a 70 per cent drop in profits amid a cross-border trade war that has upended shipping and supply chains.

The air freight company says net earnings fell to $8.8 million in its latest quarter from $29.7 million a year earlier.

Cargojet says revenues decreased to $219.9 million from $245.6 million due to “macroeconomic headwinds,” and despite a boost in domestic traffic.

On an adjusted basis, earnings dropped to 32 cents per share for the quarter, from $1.48 per share, far below analysts’ expectations of 96 cents per share, according to financial markets firm LSEG Data & Analytics.

Cargojet’s business hinges on air delivery of e-commerce goods on its fleet of 41 planes.

The company deploys them on its domestic network, on ad hoc charter flights and on more regular charter routes for clients such as DHL, which leases the aircraft, crews, maintenance and insurance (ACMI) to fly freight around the globe.

“The resilience of Cargojet’s business model was proven this quarter as our core domestic network revenue increased by more than six per cent year-over-year,” said co-CEO Jamie Porteous in a release on Wednesday.

“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.”

Co-CEO Pauline Dhillon will have to shoulder that optimism alone come Jan. 1, when her counterpart Porteous retires and she becomes the sole chief executive.

A founding member of Cargojet, Porteous will stay on as a strategic adviser through the end of 2026, the company said.

Dhillon, a founding partner, has served as chief corporate officer as well as the head of marketing and government affairs.

Earlier this year, both executives were hopeful that U.S. tariffs could open up new supply routes. In February, Porteous pointed to Cargojet’s growing overseas charter service that would steer clear of American import duties.

“Our scheduled charter services from China to Canada were specifically and deliberately targeted to serve the Canadian market, leveraging our domestic network, avoiding the U.S. market and any potential tariff restrictions,” he told analysts on a Feb. 18 conference call.

However, “this remains a very fluid situation,” he acknowledged at the time.

This report by The Canadian Press was first published Nov. 5, 2025.

The Canadian Press