Canadian freighter operator Cargojet posted lower revenue and earnings in the fourth quarter of 2025, reflecting weaker transpacific demand and strategic network adjustments across its ACMI and charter operations.
Revenue for the quarter totaled C$284.7 million, down 2.9% year over year. Profitability declined more sharply, with earnings before income taxes falling 57.4% to C$32.9 million and net earnings dropping 62.6% to C$26.6 million.
The revenue softness was largely linked to the redeployment of aircraft to new routes within the company’s ACMI and all-in charter segments. ACMI revenue declined 22.6%, pressured by ongoing global trade uncertainty and the repositioning of aircraft from long-haul Asia-Europe routes to selected South American markets.
All-in charter revenue fell 9.6% compared to the prior year, primarily due to reduced frequencies on scheduled charter services between China and Canada. The company noted, however, that the segment showed sequential improvement, supported by new charter opportunities.
In contrast, Cargojet’s domestic network delivered strong performance. Revenue within Canada rose 16.9% year over year, as consumer demand remained resilient despite global trade volatility.
The decline in net earnings was driven by reduced gross margins, higher net finance costs and increased tax provisions.
In its annual report, Cargojet said its continued focus on operational excellence and cost discipline enabled it to navigate an operating environment marked by persistent international trade volatility and rising geopolitical uncertainty.
For the full year 2025, revenue declined 0.8% to C$992.7 million, while net earnings fell 26% to C$80.2 million.
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Active Fleet Management Strategy
The year was also defined by significant fleet activity.
In the second quarter of 2025, Cargojet took delivery of two Boeing 767-300 aircraft undergoing conversion and inducted them into its operational fleet. During the third quarter, the company sold both aircraft to a financial institution and simultaneously leased them back.
A third 767-300 remains under conversion and is expected to be delivered in the first quarter of 2026. Additionally, the company completed the purchase of a factory-built 767-300 freighter, which entered service during the third quarter of 2025.
To support operational requirements, the lease of one Boeing 767-200 aircraft has been extended through March 2026.
In August 2025, Cargojet signed agreements to sell two additional 767-300 aircraft, successfully closing one sale in the third quarter and the second in the fourth quarter.
The company also signed a letter of intent in June 2025 to acquire a fully converted 767-300 aircraft, expected to be delivered in the first quarter of 2026. During the third quarter, one Boeing 757-200 aircraft was leased to a third party.
Despite a challenging international trade backdrop, Cargojet continues to adjust its fleet structure and network deployment to align capacity with evolving market conditions.
