Mr. Jamie Porteous reports

CARGOJET ANNOUNCES FOURTH QUARTER RESULTS

Cargojet Inc. has released financial results for the fourth quarter ended Dec. 31, 2023.

Revenue for the quarter was $254.7-million compared with fourth quarter 2022 revenue of $271-million. Revenue from domestic network, ACMI (aircraft, crew, maintenance and insurance) and all-in charter for the quarter was $193.1-million compared with $192.8-million in 2022. Total revenue reflected in the financial statements, which includes non-cash amortization of stock warrant contract assets, was $221.9-million compared with $267-million for the same quarter in the prior year.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $81.6-million compared with the fourth quarter 2022 adjusted EBITDA of $82.9-million. Net loss for the quarter was $34.9-million (net earnings of $28.5-million excluding warrant valuation and contract asset amortization) compared with net earnings of $2.6-million in 2022 (net earnings of $18-million excluding warrant valuation and contract asset amortization).

Strong cash flow focus generated a free cash flow inflow of $37.9-million for the three-month period ended Dec. 31, 2023, compared with outflow of $99.6-million for the same period in 2022. Net cash generated from operating activities was $31.5-million for the three-month period ended Dec. 31, 2023, compared with $64.2-million for the same period in 2022.

"Given the challenging economic environment we faced, we are very pleased with our Q4 and the full-year results. Two thousand twenty-three was a transitional year for us as we moved from managing a period of hypergrowth during the COVID-19 era to focusing on cost management and preparing the business to face the current economic environment. We rationalized our capital expenditure plans and managed costs to maintain adjusted EBITDA margins. We made solid progress in each of these areas," said Jamie Porteous, co-chief executive officer.

"Building on the progress we made in 2023, we remain committed to driving shareholder value and ensuring that we remain the best partner for our strategic customers, particularly in this current environment," said Pauline Dhillon, co-chief executive officer. "Our on-time performance was 99.5 per cent in the fourth quarter and it clearly demonstrates the commitment and dedication of the Cargojet team when it comes to serving our customers," concluded Ms. Dhillon.

About Cargojet Inc.

Cargojet is Canada's leading provider of time sensitive premium air cargo services to all major cities across North America, providing dedicated, ACMI and international charter services and carries over 25 million pounds of cargo weekly. Cargojet operates its network with its own cargo fleet of 41 aircraft.

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