Canadian cargo airline Cargojet has sold its 25 percent stake in Miami-based 21 Air LLC, as part of a measure to concentrate resources where the airline holds a competitive edge.
The carrier’s domestic overnight growth demonstrates resilience amid international airfreight challenges, while divesting the minority stake shields the company from complex cross-border labour issues.
The original investment in 21 Air was made in August 2021 via Avia Investments LLC, a joint venture with logistics entrepreneur Jim Crane, who also serves as 21 Air’s Chairman and Owner.
The sale represents a first major strategic action under CEO Pauline Dhillon, who replaced Cargojet founder Ajay Virmani at the start of 2026.
“This decision strengthens our focus on our robust domestic network, ACMI and charter operations, while allowing us to deploy capital in areas aligned with Cargojet’s core strengths,” Dhillon stated.
Cargojet’s Q4 2025 results, released February 24, 2026, provide context for this decision. Revenue for the quarter fell 2.9 percent year-on-year to CAD$284.7 million, affected by global economic pressures and disruptions in international ACMI and charter services.
Conversely, domestic overnight services grew almost 17 percent, reflecting strong Canadian e-commerce demand. Net income dropped 63 percent to CAD$26.6 million due to CAD$37.7 million in additional finance costs, but Adjusted EBITDA rose 3.6 percent to CAD$95.0 million. The company maintains a fleet of 41 cargo aircraft to support these operations.
Reports indicate that labour factors may have also played a role. In April 2026, 21 Air’s Jim Crane cited expiring pilot contracts as a key consideration.
The Air Line Pilots Association (ALPA), representing pilots at both Cargojet and 21 Air, has previously challenged the cross-border arrangement, arguing that aircraft loans to 21 Air skirt US rules limiting foreign carriers on domestic routes.
Cargojet’s pilot contracts are set to expire in June 2026, and Crane indicated that divesting reduces potential union leverage in upcoming negotiations.
Despite ending the equity partnership, Cargojet and 21 Air will continue commercial collaboration. Fleet data from April 2026 indicates that 21 Air leases several Boeing 757 and 767 aircraft from Cargojet, a practice expected to continue independently of ownership.
Despite ending the equity partnership, Cargojet and 21 Air will continue commercial collaboration. Fleet data from April 2026 indicates that 21 Air leases several Boeing 757 and 767 aircraft from Cargojet, a practice expected to continue independently of ownership.
The post Cargojet Sheds 21 Air stake in strategy shift appeared first on Air Cargo Week.
Go to Source
Author: Edward Hardy
