Cargojet Inc T.CJT

Alternate Symbol(s): CGJTF | T.CJT.DB.F | T.CJT.DB.E

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Cargojet Inc. is a Canada-based provider of time sensitive air cargo services to all major cities across North America, providing dedicated, aircraft, crew, maintenance and insurance (ACMI) and international charter services. The Company's main air cargo business is comprised of operating a domestic network air cargo co-load network between sixteen major Canadian cities and providing dedicated aircraft to customers on an ACMI basis, operating between points in Canada, the United States, Mexico, South America, Asia and Europe. It also operates scheduled and ad hoc international routes for multiple cargo customers between United States and Bermuda, between Canada, United Kingdom and Germany; between Canada and Asia; and between Canada and Mexico. Its charter services include Go Now, dangerous goods, heavy & oversized cargo, humanitarian and relief, remote destinations, automotive, and oil and gas. The Company operates its network with its own cargo fleet of approximately 41 aircraft.

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Cargojet Inc

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Post by retiredcfon Nov 15, 2022 8:42am

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Post# 35099231

RBC Looking for a Double

November 14, 2022

Cargojet Inc.

CJT and UPS contract renewal secures CJT's leadership position in Domestic Overnight market

TSX: CJT | CAD 140.12 | Outperform | Price Target CAD 272.00

Sentiment: Positive

Our take. CJT today announced that it has renewed and extended its agreement with UPS - the current agreement was due to expire in 2025 and the new agreement is extended to December 31, 2030. We view the contract renewal as a key positive as it further secures the company's positioning in the domestic overnight air cargo market (95% market share) as well as validates CJT’s strong service offering reflecting customer willingness to lock in with the company long-term. Today’s announcement in our view further reduces new entrant risk and supports our view that demand for CJT’s service offering remains strong. CJT remains our top idea in transportation.

What happened? Cargojet announced today it has renewed and extended its Air Cargo Services Agreement with UPS Canada for an additional five-year Term. The current agreement was due to expire on July 1, 2025 and the new agreement is extended to December 31, 2030.