Rise in China E-commerce Traffic Lifts Cargojet to Record Revenue

The Canadian cargo airline, Cargojet, has soared to new heights, reporting record revenue for the full year 2024, driven by a surge in e-commerce traffic from China. The company's strategic initiatives and fleet expansion plans have positioned it to capitalize on the growing demand for air cargo services between the two countries.

Cargojet's revenue for the year reached an impressive CAD 1.0 billion, up 14.1% from 2023, with earnings before income tax (EBIT) improving by 166.3% to CAD 137.8 million. The company's strong performance can be attributed to several key factors, including the growth in e-commerce traffic from China and its ability to adapt to changing market demands.

One of the primary drivers of Cargojet's success has been the increase in demand for charter services from Chinese e-commerce platforms. In late May 2024, the company began operating scheduled trans-Pacific charter service for logistics provider Great Vision HK Express under a three-year agreement. This new business contributed to the charter segment's quarterly record of CAD 20.3 million in revenue. Additionally, Cargojet was able to rebalance its resources to meet the influx of requests for charter flights from Chinese e-commerce marketplaces, resulting in a 16% increase in flight hours flown in Q4 2024 compared to the same prior-year period.

Cargojet's ability to adjust its schedule and free up Boeing 767-300 converted freighters to support the Great Vision charter program without having to invest in new aircraft has been a key factor in its success. The company's fleet expansion and optimization plans align well with the projected growth in e-commerce traffic and demand for air cargo services. Cargojet plans to induct three converted Boeing 767-300 freighters into its fleet in 2025, with the first two expected by the end of the first quarter and the third by the third quarter. Additionally, the company is in the process of acquiring one factory-manufactured freighter, which is also expected to be delivered by the end of the first quarter of 2025.



Cargojet's strategic initiatives and fleet expansion plans have enabled it to capitalize on the increasing demand for air cargo services between China and Canada. The company's ability to adapt to changing market demands, secure new business with major customers such as Amazon, and maintain an optimized fleet level has contributed to its strong financial performance in 2024. As the e-commerce market continues to grow, Cargojet is well-positioned to generate strong future earnings and maintain its competitive edge in the industry.