Cargojet renews partnership with DHL until 2033

Executive Summary

• Cargojet Inc. has renewed its strategic agreement with DHL Network Operations (USA) Inc. until March 31, 2033, with options to extend the term until March 31, 2037.
• The partnership expands Cargojet's service portfolio to include its entire range of air transportation services (ACMI, CMI, charter, and aircraft dry lease) to support DHL's global logistics network.
• As part of the agreement, Cargojet is terminating existing warrants held by DHL and issuing new warrants representing up to 6.63% of its shares, with vesting tied to DHL delivering up to $3.2 billion in business volume.

Key Details

• Agreement Term: The strategic agreement is renewed until March 31, 2033, with two consecutive renewal options for an additional two-year term each, potentially extending the agreement to March 31, 2037.
• Service Scope: Cargojet will provide its full range of air transportation services, including ACMI, CMI, charter, and aircraft dry lease services, utilizing its fleet of Boeing 767 and Boeing 757 freighters.
• Operational Commitments: DHL will maintain a minimum monthly block hour guarantee and provide Cargojet with a preferred opportunity to fly additional routes as DHL rearranges or adds capacity globally.
• Warrant Termination: Cargojet will fully terminate the warrants to acquire 1,645,000 voting shares previously issued to DHL in March 2022.
• New Warrant Issuance: Cargojet will issue warrants to acquire up to one million of its outstanding voting shares (representing up to 6.63% of shares on a non-diluted basis).
• Warrant Terms:
  • Exercise Price: $93.61 per share (representing the five-day volume-weighted average trading price as of June 26, 2025).
  • Duration: Eight-year period.
  • Vesting Condition: Vesting is tied to DHL delivering up to $3.2 billion in business volume during the term.
• Regulatory Status: The Toronto Stock Exchange has provided conditional approval for the warrants and price protection. Cargojet intends to file a material change report and the warrant certificate with Canadian securities regulators (SEDAR+).

Notable Quotes

• Dr. Ajay Virmani, Executive Chairman, Cargojet: "Securing the confidence of DHL Group underscores the strength of Cargojet's value proposition as a long-term strategic partner. This deepened alliance is a testament to our team's relentless commitment to delivering industry-leading on-time performance and operational flexibility."
• Travis Cobb, Executive Vice-President, Global Operations and Aviation, DHL Express: "Cargojet is an important strategic partner and delivers high quality, capacity and flexibility to DHL Express, operating key routes for us into Canada, Mexico and Latin America. We are pleased to extend our long-standing relationship with Cargojet and look forward to future expansion where mutually beneficial to both organizations."