Cargojet reported revenue of C$267 million (US$ 196 million) for the fourth quarter of 2022 (Q4 2022), an increase on the C$235.9 million recorded during the same period in 2021.
Gross margin for the quarter was down to C$61.9 million compared to Q4 2021's C$78.2 million. Adjusted EBITDA was C$82.9 million compared Q4 2021's C$90.5 million, while Q4 2022 adjusted free cash flow C$33.6 million fell below 2021's C$37.8 million.
Revenue growth of 13.2% for the quarter compared reflected "a strong contribution from the ACMI [aircraft, crew, maintenance and insurance] network", up 10.6%, and from charters, which were up by 13.9%, the Canadian carrier said.
Net income for the quarter was C$2.6 million, far short of the $102 million for the period in 2021.
“Over the past several years, Cargojet has evolved its business model that is increasingly based on strategic partnerships rather than transactional relationships with its customers. By aligning our long-term commercial interests, we expect greater endurance of volumes with our strategic customers even if global volumes soften during a recessionary period,” said Ajay Virmani, president and chief executive.
“The continued global increase in e-commerce demand has produced strong growth in our domestic and ACMI business segments during the quarter," Virmani said, adding that the company was watching for "various macro risks including a potential recession, which may have an impact on consumer spending".