By Adriano Marchese
Cargojet, the Canadian air cargo services company, announced lower profit and revenue in the second quarter. The decline can be attributed to consumers shifting their focus towards leisure activities rather than consumer goods, resulting in reduced demand for cargo services.
Net earnings for Q2 were reported at 31.1 million Canadian dollars ($23.1 million), or C$1.68 a share. This is a significant decrease compared to last year’s earnings of C$160.9 million, or C$8.20 a share.
On an adjusted basis, earnings declined to C$0.91 a share from C$1.51 a share. However, these figures still surpassed analyst expectations of a sharper decline to C$0.83 a share, according to a poll on FactSet.
Revenue also witnessed a decrease, falling to C$209.7 million from C$246.6 million. Analysts had predicted a decline to C$223.4 million.
Chief Executive Ajay Virmani acknowledged the challenging economic conditions expected throughout the year. However, he anticipates a normalization in consumer spending patterns by the end of this year, as the shift towards travel and leisure is expected to balance out.
Cargojet aims to navigate the current economic cycle by focusing on cost-management and right-sizing its network. These initiatives will enable the company to adapt and thrive under current market conditions.