Cargojet to pass large pilot wage increase onto customers

Cargojet, a Canadian freighter operator, intends to pass a significant wage increase for pilots onto its customers. The new five-year contract with pilots, finalized through arbitration, grants a 53% wage increase over the contract term, including an immediate 26% raise effective July 1. The company's CEO, Pauline Dhillon, stated that these cost increases will be absorbed by customers with shorter-term contracts, with conversations already underway.

Cargojet expects to achieve operational stability and pass the costs through without impacting long-term margins. The productivity gains from the new labor agreement will also contribute to the company's bottom line.