By Adriano Marchese
Cargojet, the Canadian air cargo company, has reported a decrease in net income and revenue for the third quarter. This result fell short of analyst expectations due to the impact of high interest rates on consumer discretionary spending.
According to the company's announcement on Tuesday, net income dropped to 10.5 million Canadian dollars ($7.7 million), or C$0.61 per share, compared to 83.4 million Canadian dollars, or C$4.33 per share, in the same quarter last year.
Adjusted earnings were C$0.30 per share, missing the FactSet consensus of C$0.72 per share.
Meanwhile, revenue declined from C$232.7 million to C$214 million in the third quarter. Although analysts had predicted a decrease in revenue, they expected it to be around C$217.6 million.
Ajay Virmani, Chief Executive of Cargojet, commented that the volumes of discretionary items are starting to soften as higher interest rates have begun to impact household disposable income.
In response to the challenging conditions, Virmani stated that the company plans to identify cost-savings opportunities and enhance its operating model.