Cargojet: the 777 era may have ended before it took off, but life goes on
Cargojet’s foray into the B777 freighter arena has ended before it had taken off. A year ...
Photo: Cargojet
Dwindling demand has reportedly forced Cargojet to not only cap its previous fleet growth plans, but seen it look to sell excess capacity, listing four converted 757 freighters for sale.
CFO Scott Calver informed investors last week of the decision to sell the planes. Citing industry experts, Freightwaves claimed that not accounting for the cost of acquisition, the cost to Cargojet of converting each 757 was around $5.2m.
It follows a summer announcement from the Canadian carrier that, having bought three 777s, it would not be converting them and the aircraft have since been sold.
The decision to rid itself of further capacity will probably not come as much of a surprise. On Tuesday, Cargojet released results indicating a more than 8% drop in nine-month earnings – down from $712.9m in 2022 to $655.6m this year.
That rate of decline reflected its three-month figures, which fell from $232.7m in 2022 to $214m over the quarter ending September.
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