HI there,
Cargojet is an excellent company. It is however, engaged in a battle with its union re: new rules in terms of pilot rest. The company wanted to apply for an exemption from the new Canadian regulations aimed at reducing pilot fatigue - the issue at hand is the increase in costs associated with such regulation. The union did not like this and voted against applying for said exemption. Cargojet subsequently threatened to mover work to the US. It'll be interesting to see how this all plays out. In the end, I'm sure there will be some impact on costs, the question is to what extent?
That uknown leaves a little bit of overhang on the stock and it has since retreated from all time highs. It is important to note as well, Cargojet got a little ahead of itself in terms of valuation. It is still trading at a premium to historical averages and competition is ramping up. Amazon is already investing in its own planes and logisitc network, which would be a negative for Cargojet as it counts Amazon as one of its important customers. Likely years away from Amazon truly taking over its entire transportation system, but it is something to keep an eye on.
I do like the company for the long-term despite recent headwinds. Although it still isn't cheap, the recent downtrend is healthy as it is now trading at more respectable valuations.
Mat