Mr. Jamie Porteous reports

CARGOJET ANNOUNCES FIRST QUARTER RESULTS

Cargojet Inc. has released its financial results for the first quarter ended March 31, 2024.

Total revenue for the quarter was $231.2-million compared with first quarter 2023 revenue of $231.9-million. Revenue from domestic network, ACMI (aircraft, crew, maintenance and insurance) and all-in charter for the quarter was $181-million compared with $169.9-million in first quarter 2023.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $78.4-million compared with the first quarter 2023 adjusted EBITDA of $75-million. Net earnings for the quarter were $32.5-million (net earnings of $20.8-million, excluding warrant valuation and contract asset amortization) compared with net earnings of $30.5-million in 2023 (net earnings of $9.8-million, excluding warrant valuation and contract asset amortization).

Strong cash flow focus generated a free cash flow inflow of $168.7-million for the three-month period ended March 31, 2024, compared with $15.2-million for the same period in 2023. Net cash generated from operating activities was $80.3-million for the three-month period ended March 31, 2024, compared with $63.1-million for the same period in 2023.

"We further optimized our fleet and flight schedules; combined with an encouraging increase in volumes, we are starting to see the margin improvements we have been working on since 2023. Our cautious optimism is tempered by the increasing geo-political uncertainty and potential supply chain disruptions. We are particularly pleased to start the year with strong cash flow generation that will help us execute the strategic priorities we laid out earlier this year," said Jamie Porteous, co-chief executive officer.

"We continue to drive efficiencies in every aspect of our business. Streamlined maintenance processes, optimized schedules and better shift management are helping reduce costs; greater focus on disciplined procurement is yielding expense savings in key large-ticket categories. We are particularly pleased with a strong cost-discipline culture across the company," said Pauline Dhillon, co-chief executive officer. "But at the core of everything we do is our passion for customer success and we continue to demonstrate that with our industry leading on-time performance. Our backbone continues to be our team of dedicated, loyal, committed professionals who drive our daily successes," 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 and select international destinations, providing dedicated, ACMI, CMI and international charter services, and carries over 25 million pounds of cargo weekly. Cargojet operates its network with its own fleet of 41 aircraft.

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