Cargojet Extends Amazon, DHL Deals While Labor Talks Loom

Cargojet has extended key air cargo agreements with DHL and Amazon, reinforcing its role as a strategic partner in global logistics, even as its pilots continue to push for improvements in their collective labor agreement. The renewed contracts cover nearly half of Cargojet’s operations, securing multi-year revenue and operational guarantees.

The deal with DHL Network Operations, an affiliate of DHL Group, now runs through March 31, 2033, with two optional two-year renewals that could extend it to 2037. Since partnering with DHL in 2005, Cargojet has expanded its services to include ACMI, CMI, charter, and aircraft dry lease solutions supporting DHL’s global network. The company operates Boeing 767 and 757 freighters for DHL’s requirements.

Under the new terms, DHL will maintain a minimum monthly block hours guarantee and grant Cargojet preferred opportunities to operate additional routes as capacity needs evolve. Cargojet will also restructure warrants issued in March 2022, canceling 1,645,000 voting shares granted to DHL and issuing new warrants for up to 1,000,000 shares, tied to achieving up to CAD$3.2 billion (US$2.3 billion) in business volume over the contract’s duration.

“Securing DHL Group’s confidence underscores Cargojet’s strength as a long-term partner. This alliance reflects our team’s relentless commitment to industry-leading performance and operational flexibility,” said Dr. Ajay Virmani, Executive Chairman, Cargojet.

Separately, Cargojet extended its air transportation agreement with Amazon Canada until March 31, 2029, with an option to renew until 2031. At the heart of our success is a dedicated Cargojet team that makes it happen every single day,” Virmani added.

Meanwhile, Cargojet pilots, represented by the Air Line Pilots Association (ALPA), continue collective bargaining negotiations with management.

“These contract extensions are the direct result of our pilots’ expertise, which ensures over 99% on-time deliveries,” said Capt. Adam Brochu, President, Cargojet’s Master Executive Council. “To maintain client trust and operational standards, Cargojet must recognize the value we provide and prioritize pilot retention and job stability in the next agreement.”