CargoJet reported the total revenue of $209.7 million for second quarter (Q2) 2023, about 37 million less than Q2, 2022 due to declining demand for air cargo. The Q2, 2022 revenue was $246.6 million. Revenue excluding fuel surcharge and other revenues was $171.6 million as against $177.2 million reported the same time last year.
The adjusted EBITDA for the quarter was $74.3 million compared to the second quarter 2022. Adjusted Free Cash Flow was $52.3 million for the three-month period ended June 30, 2023 compared to $41.2 million for the same period in 2022.
CargoJet reported net income of $31.1 million for the quarter with a net loss of $1.7 million excluding warrant valuation gain compared to net income of $160.9 million in 2022 (net income of $26.2 million excluding warrant valuation gain).
“To prepare Cargojet to ride the current economic cycle, we shifted our focus to cost management as well as right sizing our network, while curtailing growth CapEx and focusing on generating free cash flow. Our EBITDA margin of 35.4% in this quarter vs. 32.9% prior year clearly demonstrates that our cost management initiatives are yielding the desired results,” said Ajay Virmani, president and chief executive.
“While we expect economic conditions to remain difficult, the shift in consumer spending towards travel and leisure vs goods is expected to normalize towards the end of this year. The Cargojet team continues to be industry leaders providing a 99.6% on-time performance in the quarter. Our focus remains on delivering exceptional reliability and customer service,” concluded Virmani.