DHL to utilize Cargojet’s entire portfolio of services to support its growth

DHL to receive warrants, with vesting tied to achievement of commercial milestones up to C$2.3 billion in business volume over 7 years

Mississauga, ON, March 29, 2022 – Cargojet Inc. (“Cargojet”) (TSX:CJT) announced today that it has entered into a new long-term strategic agreement (the “Agreement”) with DHL Network Operations (USA) Inc. (“DHL”), an affiliate of Deutsche Post DHL Group (the “Group”) (XETRA:DPW.DE), for a term of five years with a renewal option for an additional two years, to provide air-transportation services for DHL’s global network.

The Agreement is expected to be meaningfully accretive to Cargojet’s earnings and cash flows over time and help Cargojet further diversify its portfolio of services in line with its previously announced strategic goal of achieving a balanced portfolio.

Under the Agreement, Cargojet will provide ACMI, CMI, charter, and aircraft dry lease services to DHL to support DHL’s international requirements for Europe and North, South, Central and Latin America, as well as Asia. Cargojet utilizes 12 freighters to service DHL’s current requirements.  DHL intends to add 5 additional B-767 freighters during the 2022-23 timeframe to fulfill DHL’s anticipated network requirements. Additionally, DHL intends to be Cargojet’s inaugural launch customer for the state-of-the-art B-777 wide body long-range cargo aircraft, which are expected to be deployed in late 2023 or early 2024.

“Earning the trust and confidence of Deutsche Post DHL Group is a remarkable milestone in Cargojet’s journey. We are even more excited about the opportunity to add value and earn the right to be a long-term strategic partner each and every day.” said Chief Executive Officer Dr. Ajay Virmani. “This strategic partnership is a real tribute to our people who have worked extremely hard all through the pandemic while maintaining the industry best on-time performance and flexibility that has allowed us to earn this business”.

Cargojet’s international and ACMI growth will be led and managed by its international team of specialists while Cargojet’s current core team will continue to focus on delivering excellence within its existing and growing domestic network. As the Cargojet fleet grows and it benefits from the scale of operation, Cargojet remains committed to providing cost effective, flexible and competitive air-cargo services to all customers.

“DHL’s international aviation network is a true competitive differentiator and an enabler of growth for our customers. Cargojet’s “customer first” culture has added flexibility and resilience to our network,” said Travis Cobb, EVP, Global Network Operations & Aviation, DHL Express. “A longer-term strategic alignment with Cargojet will bring additional capacity and allow us to continue delivering the highest levels of service quality to the market.”

“Cargojet is an important aviation partner of DHL in North America and we see this expansion of our relationship further strengthening intra-regional and intercontinental links to and from this region,” said Mike Parra, CEO, DHL Express Americas. “Its versatile cargo fleet and high on-time reliability positions us well to further capitalize on the dynamically growing e-commerce market, in particular. This step builds on the significant investments we have made in DHL’s aviation capacity and capabilities over the last two years in the Americas.”

In addition, to align interests and strengthen the long-term strategic relationship, Cargojet will issue to DHL warrants to acquire up to 9.5 percent of Cargojet’s outstanding voting shares (on a non-diluted basis as of the date hereof) at a price of C$158.92 per share (based on the 20-day volume weighted average trading price immediately prior to the date hereof) over a period of seven years, with vesting tied to the delivery by DHL of up to C$2.3 billion[1] in business volume during the same term.

Management will be hosting at conference call Tuesday, March 29, 2022, at 9:00am est.

Dial in Numbers:

Canada:         647 484 0475

USA:               888 394 8218

Reference:    Cargojet Conference Call

Additional Information

Cargojet intends to file a material change report in connection with the transactions contemplated by this news release, which will be available under its corporate profile on SEDAR at In connection therewith, a copy of the warrant certificate will be filed with the applicable Canadian securities regulators on SEDAR.

Cargojet has received conditional listing approval from the Toronto Stock Exchange to list an aggregate of 1,645,000 variable voting shares issuable upon the full vesting of the warrants, representing 9.5% of Cargojet’s voting shares on a non-diluted basis.

The summary of the key terms of the warrants contained herein and in the to-be-filed material change report are expressly qualified in their entirety by the full text of the as filed warrant certificate.

About DHL:

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 81 billion euros in 2021. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.

About Cargojet:

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 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own fleet of 31 cargo aircraft.

For further information, please contact:

Pauline Dhillon
Chief Corporate Officer
Tel: (905) 501-7373

Notice on Forward Looking Statements

Certain statements contained herein constitute “forward-looking statements”, including with respect to the expectation that the Agreement will be meaningfully accretive to Cargojet’s earnings and cash flows over time as well as create other benefits and opportunities, including to diversify Cargojet’s portfolio as described above; the addition of 5 B-767 freighters during the 2022-23 timeframe; the deployment of B-777 cargo aircrafts in late 2023 or early 2024 and DHL’s intention to be the inaugural launch customer; benefits from the scale of operation and commitment to providing cost effective, flexible and competitive air-cargo services to all customers; the performance-based vesting of the warrants to be issued to DHL; and the listing of the underlying shares on the Toronto Stock Exchange. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans,” “intends,” “anticipates,” “should,” “estimates,” “expects,” “believes,” “indicates,” “targeting,” “suggests” and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Although Cargojet believes that the forward-looking statements in this press release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements, including, without limitation, the following factors, many of which are beyond Cargojet’s control and the effects of which can be difficult to predict: (a) the failure to achieve the financial and other anticipated benefits from the Agreement on the timeline contemplated or otherwise; (b) the uncertainties and risks related to the ongoing COVID-19 pandemic, including variants of concern, and impacts related to government responses and restrictions, health and safety measures, supply chain disruptions, the effectiveness and availability of vaccines, and the extent of the impact of the pandemic on consumer spending habits, the competitive landscape, and overall economic conditions; (c) credit, market, currency, operational, capital expenditures, liquidity and funding risks generally, including changes in economic conditions, inflation, interest rates, exchange rates or tax rates; (d) risks and uncertainties relating to retail, e-commerce growth, labour, technology, changes in law or regulation, competition, and business generally; and (e) other risks inherent to the Cargojet’s business and/or factors beyond its control which could have a material adverse effect on Cargojet. In addition, reference should be made to the issuer’s most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Notes thereto and related Management’s Discussion and Analysis (MD&A), for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. Cargojet assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event Cargojet does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

[1] Being the C$ equivalent of approximately US$1.8 billion, using an exchange rate of 1.2518 at close of business on March 28,2022.