The company, which provides time-sensitive overnight air cargo services as well as aircraft leases, garnered nearly 17 per cent year-over-year revenue growth in the quarter ended
"We believe the massive digital adaptation that took place over the past one-and-a-half years has fundamentally shifted behaviours for consumers," chief executive
"Hybrid is the new normal. ... Consumers have discovered that they can efficiently order these items and free up time in their lives to do other things.
"While there may be some short-term volatility due to pent-up demand for in-person shopping, the longer-term trends of moving to online shopping are firmly intact," he said.
Supply bottlenecks and trucking and container shortages have further boosted demand for the
Last quarter it enjoyed 21 per cent year-over-year growth in revenue from its aircraft leasing service — crew, maintenance and insurance are also part of the package — to nearly
While Virmani stressed that e-commerce sales are "maintaining the new high baseline,"
"We also expect a normalizing of international air cargo demand and pricing as belly freight capacity is steadily reintroduced over the next two years as passenger airlines rebuild their international networks," Doerksen said in a note to investors.
The relative dearth of passenger planes in the sky, which typically carry cargo in their bellies, continues to bolster demand — and airfreight charges — for cargo services amid depressed business and leisure travel since
However, the hefty price of pilots offset some of
"There is a shortage in real numbers when it comes to pilots," Virmani said. "When you hire a pilot, you're looking at three to four months before they're inducted into flying after training and line checks."
The new narrow-body jetliners will free up three 767 aircraft for leasing or international cargo use, a key bump in capacity if digital sales stay sky-high.
"The negative reaction following
However, belly space will not recover until 2027, he said.
"Evidence suggests that customers (such as DHL) are strategically orienting themselves away from passenger belly capacity and toward dedicated freighters over the long-term; a direct benefit to
The 19-year-old company's revenue jumped to
The growth came as
Analysts on average had expected a profit of
Adjusted earnings before interest, taxes, depreciation and amortization amounted to
This report by
Companies in this story: (TSX:CJT)
© 2021 The Canadian Press. All rights reserved., source