Canadian Cargo Airline Finalises 5-Year Pilot Agreement in 2026

Canada – Canadian cargo airline Cargojet has implemented a five-year collective agreement covering approximately 470 Air Line Pilots Association (ALPA)-represented pilots, with wages increasing 26% from July 1, 2026 followed by 5% annual increases in each of the next four years.

• The agreement provides a 26% initial wage increase followed by four annual increases of 5%, producing an approximately 53% compounded increase over the five-year term. It took effect retroactively on July 1, 2026 and runs through June 30, 2031.
• Cargojet’s baseline pilot work schedule increases from 15 to 16 days per month. Pilots who prefer the previous schedule can remain at 15 days for most of the year with proportional compensation, according to management’s Q2 earnings call.
• The contract also provides additional pilot training days over the agreement period. Executive Chairman Ajay Virmani said during the earnings call that the provisions begin with one additional training day in the first year and increase in subsequent years, adding training availability alongside the approximately 6.5% productivity increase represented by moving from 15 to 16 monthly workdays.
• Cargojet expects gross crew costs to rise from approximately C$27 million per quarter to C$31–32 million following implementation of the agreement. Management said wages historically account for approximately 60–65% of reported crew costs and expects higher productivity, reduced overtime requirements and future customer repricing to offset part of the increase over time.
• Cargojet’s Q2 Management Discussion and Analysis states that the agreement preserves the no-strike, no-lockout provision of the previous contract and changes both pilot compensation and operating provisions. Cargojet described this as providing operating certainty through the five-year term.
• ALPA currently identifies 470 professional pilots at Cargojet. Cargojet pilots joined the union in 2021, and the latest agreement is the pilot group’s first collective agreement negotiated under ALPA representation.
• Cargojet operated 41 freighters as of June 30, 2026, comprising 16 Boeing 757-200Fs, two Boeing 767-200Fs and 23 Boeing 767-300Fs. The company subsequently completed the purchase of another converted 767-300F scheduled to enter the operational fleet during the third quarter, with its year-end 2026 fleet plan calling for 42 aircraft.
• The carrier generated C$275.8 million in second-quarter 2026 revenue, up 15.8% year-on-year, while charter revenue increased 37.4%. Management has said it continues to evaluate commercial opportunities in Europe, East Asia, Africa and the Middle East.
• AFM previously reported that Cargojet and its pilot group had reached a tentative agreement in 2026 described as including a nearly 40% immediate pay increase. The July 27 arbitration award establishes the final terms now in effect, including the 26% first-year wage increase and subsequent annual increases.

Source: ALPA and Cargojet