Cargojet (CJT) Investor Presentation summary

Business overview and market position

• Founded in 2002, operates 41 freighter aircraft serving 16 major Canadian cities and maintains 54 international alliances, covering over 90% of the Canadian population.

• Holds leading market share as the only national overnight air cargo consolidator, with high barriers to entry due to regulations, infrastructure, and customer network alignment.

• Key customers include Purolator, Amazon, UPS, and DHL, all with long-term contracts and high credit ratings.

• Strategic partnerships and customer network integration at Hamilton Airport drive operational stickiness and volume growth.

• Management team features experienced leaders, with recent appointments to co-CEO and CFO roles.

Service types and revenue mix

• Revenue is diversified: 38% from domestic overnight network, 28% from ACMI/CMI contracts, and 18% from charters, with the remainder from surcharges and other sources.

• Domestic network covers 16 cities, with 75% of revenue under long-term contracts and strong e-commerce-driven growth.

• ACMI services operate 17 dedicated aircraft, generating high EBITDA margins as customers bear direct flight costs.

• Charter business leverages idle aircraft for ad hoc and scheduled services, including new China-Canada routes, and saw 59% YoY growth in FY2024.

Fleet and operational efficiency

• Operates a scalable fleet of 41 freighters (88% owned), with ongoing expansion through B767 conversions and additional feedstock.

• Modular fleet design allows for efficiency and no pilot retraining across aircraft types; net book value of fleet is ~$1.2 billion.

• Maintains ~99% on-time delivery and 75% contracted volume, with average initial contract lengths of 4–10 years.