Cargojet stock (CA1845351066): Q1 profit plunges on weaker cargo demand

Cargojet reported a sharp drop in first?quarter net income as air cargo demand softened, even as revenues edged higher and the company maintained its dividend.

Cargojet Inc. (TSX: CJT) saw its first?quarter net income plunge to C$4.1 million in the three months ended March 31, 2026, down from C$48 million in the same period of 2025, according to a company news release and industry coverage of the results.Newswire.ca as of May 10, 2026Aviation Week as of May 10, 2026

Revenues rose about 1.9% year?over?year, but the gain was offset by lower block hours and softer cargo yields, which compressed profitability at the Canadian overnight air cargo operator.Aviation Week as of May 10, 2026

As of: 10.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Cargojet Inc.
• Sector/industry: Industrials / Integrated Freight & Logistics
• Headquarters/country: Mississauga, Canada
• Core markets: Canada, United States, Mexico, Europe, Asia, South America
• Key revenue drivers: Domestic overnight air cargo network, dedicated aircraft services (ACMI), scheduled and ad hoc international routes
• Home exchange/listing venue: Toronto Stock Exchange (TSX: CJT)
• Trading currency: Canadian dollar (C$)

Cargojet: core business model

Cargojet operates a domestic air cargo co?load network connecting major Canadian cities, providing time?sensitive overnight delivery for parcels, documents and other freight.Morningstar Australia as of May 10, 2026

The company also offers dedicated aircraft services on an Aircraft, Crew, Maintenance and Insurance (ACMI) basis, flying between points in Canada, the United States, Mexico, Europe and other international destinations.Morningstar Australia as of May 10, 2026

In addition, Cargojet runs scheduled and ad hoc international routes for multiple cargo customers, including services between the United States and Bermuda, Canada and Europe, Canada and Asia, and Canada and Mexico, which diversifies its exposure beyond the domestic overnight market.Morningstar Australia as of May 10, 2026

Main revenue and product drivers for Cargojet

The company’s primary revenue stream comes from its domestic overnight air cargo network, where it consolidates shipments from multiple customers onto a shared fleet, optimizing utilization and yield.Simply Wall St as of May 10, 2026

ACMI contracts with other carriers and logistics providers add a second major pillar, as Cargojet leases out aircraft along with crew, maintenance and insurance, typically on multi?year or seasonal agreements that can smooth earnings across cycles.Simply Wall St as of May 10, 2026

International scheduled and ad hoc routes further broaden the revenue base, allowing the company to capture demand from e?commerce, express parcel and general cargo customers moving goods between North America, Europe, Asia and South America.Morningstar Australia as of May 10, 2026

Why Cargojet matters for US investors

For US investors, Cargojet offers indirect exposure to North American air cargo volumes, particularly overnight parcel flows between Canada and the United States, which are closely tied to e?commerce and supply?chain activity.Morningstar Australia as of May 10, 2026

The company’s cross?border routes and ACMI services to US?based carriers mean its performance can reflect broader trends in trans?border trade and logistics, even though the stock trades on the Toronto exchange and is denominated in Canadian dollars.Morningstar Australia as of May 10, 2026

US?based investors considering Cargojet should factor in currency risk, sector cyclicality and the company’s relatively high leverage, which can amplify both upside and downside in earnings and share price.MarketBeat as of May 10, 2026

Conclusion

Cargojet’s first?quarter results highlight the sensitivity of its earnings to air cargo demand and yield, with net income falling sharply despite a modest revenue increase.Aviation Week as of May 10, 2026

The company continues to operate a diversified network across domestic and international routes, supported by ACMI contracts that can help stabilize cash flows through softer periods.Morningstar Australia as of May 10, 2026

For US investors, Cargojet remains a niche play on North American air freight, but its high leverage and exposure to cyclical cargo volumes mean that volatility and earnings swings should be expected rather than avoided.MarketBeat as of May 10, 2026

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.