Cargojet has publicly disclosed its fleet strategy for the coming years, emphasizing its decision not to incorporate the originally planned Boeing 777-300ER SF. Currently, the company owns two 767s, which it intends to convert into freighters as demand begins to rebound.
In this regard, the company’s management believes that the current fleet plan will suffice to meet its short and medium-term objectives. Ajay Virmani, Chariman of Cargojet, noted that «in 2023, we exercised caution for growth, given the economic conditions. Forecasts indicate that the international air cargo market will remain weak in the short and medium term, and deploying the 777 would not be strategically prudent. Therefore, we have decided to withdraw our commitments for the remaining four aircraft. Additionally, we will continue adjusting our 767 fleet to align with our growth strategy.» Pauline Dhillon, Co- Chief Executive Officer, added, «The performance of the 2023 holiday season was in line with our expectations.»
Related Content: IAI to convert four 777-300ERs to freighters for Cargojet
Cargojet has also outlined its projected goals for 2024 and 2025. The company does not plan on incurring capital expenses in 2024. Its future strategy will focus on several key principles: increasing dividends, identifying growth opportunities to deploy capital, and maintaining a share repurchase program, which has so far reacquired a total of 366,408 shares at a cost of $38.3 million.
The airline operates four 757 freighters and is exploring options for these aircraft, including leasing or selling them. Cargojet is one of Canada’s leading cargo airlines. Through its wet lease and charter services, it transports over 25,000,000 pounds (10,000 tons) of cargo weekly. The airline maintains a fleet of thirty-one aircraft.
