Cargojet Announces Strong Fourth Quarter and Year End Results

Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT) (TSX: CJT.A) announced today financial results for the fourth quarter and year ended December 31, 2018.

For the Fourth Quarter Ended December 31, 2018:

• Total Revenues were $132.6 million, an increase of $14.4 million or 12.2% versus the previous year
• Gross Margin was $37.1 million, a decrease of $0.3 million or 0.8% versus the previous year
• Adjusted EBITDA was $40.2million, an increase of $2.9 million or 7.8% versus the previous year
• Adjusted EBITDAR was $42.3million, an increase of $2.2 million or 5.5% versus the previous year

For the Year Ended December 31, 2018:

• Total Revenues were $454.9 million, an increase of $72.0 million or 18.8% versus the previous year
• Gross Margin was $112.3million, an increase of $6.0 million or 5.6% versus the previous year
• Adjusted EBITDA was $128.0million, an increase of $18.5 million or 16.9% versus the previous year
• Adjusted EBITDAR was $137.9million, an increase of $15.0 million or 12.2% versus the previous year

"Cargojet continued to produce strong revenue and EBITDA growth in 2018," said Ajay Virmani, President and Chief Executive Officer. "We are very pleased with our financial and operating results as we prudently manage our capacity to meet air cargo demand particularly related to e-commerce growth in Canada as well as our expanding ACMI and ad-hoc charter business. The continued year over year results are a direct reflection of the Cargojet team's efforts and dedication in continuing to provide a first class service to our customers," he added.

Cargojet is Canada's leading provider of time sensitive overnight air cargo services and carries over 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft. For more information, please visit: www.cargojet.com.

Non-GAAP Measures

"Adjusted EBITDA" and "Adjusted EBITDAR" are non-GAAP measures used by the Corporation to provide additional information on its financial and operating performance. Adjusted EBITDA and Adjusted EBITDAR are not recognized measures for financial statement presentation under Canadian GAAP and it does not have standardized meanings and may not be comparable to similar measures presented by other public companies.

Adjusted EBITDA is used by the Corporation to assess earnings before interest, taxes, depreciation, amortization, gain or loss on disposal of capital assets, unrealized foreign exchange gains or losses, gain or loss on forward foreign exchange contracts, gain or loss on cash settled share based payment arrangement, loss on extinguishment of debt, employee pension, aircraft heavy maintenance expenditures, heavy maintenance deposits and non-cash pension expenses as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other assets. Adjusted EBITDAR is calculated as Adjusted EBITDA excluding aircraft rents. The Corporation believes that these alternative measures provide a more consistent basis to compare the performance of the Corporation between the periods. Adjusted EBITDA and Adjusted EBITDAR provide additional information to users of Management's Discussion and Analysis of Financial condition and Results of Operations ("MD&A") to enhance their understanding of the Company's financial performance.

Reconciliation of non-GAAP EBITDA, Adjusted EBITDA and Adjusted EBITDAR to GAAP income is provided on page 15 of the MD&A for the three months and year ended December 31, 2018.