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Cargojet Income Fund Announces Third Quarter Results

Highlights for the quarter:

·Revenue for the three-month period ended September 30, 2005, increased 14.6 per cent from last year to $29.5 million
·EBITDA increased to $4.3 million from $1.1 million in same period of last year
·Distributions to unitholders of $2.46 million from distributable cash of $2.7 million for a payout ratio of 91 per cent
·Demand for Cargojet’s overnight cargo services continues to grow, as reflected in the record air cargo volumes carried during the quarter.

Mississauga, Ontario (November 15, 2005) – Cargojet Income Fund (TSX: CJT.UN) (the “Fund”), Canada’s leading provider of time-sensitive overnight air cargo service, today announced its results for the third quarter ended September 30, 2005.

“Strong growth in revenue during the quarter came from all areas of our business and we achieved these positive results within our existing network,” said Ajay Virmani, President and Chief Executive Officer. “Operationally, we had record air cargo volumes during August and September and we successfully renewed two multi-year contract agreements with national customers on very favourable terms. Our cash distributions and payout ratio during the quarter were in line with expectations and we are on track to meet our performance targets for the remainder of 2005.”

Revenue for the quarter ended September 30, 2005, was $29.5 million and represented an increase of $3.8 million or 14.6 per cent as compared to the third quarter of 2004. Increases in overnight cargo revenues, ACMI (aircraft, crew, maintenance and insurance) cargo and ACMI passenger revenues of $2.5 million, $0.9 million and $0.4 million respectively accounted for the increase. Revenue for the nine months ended September 30, 2005, totaled $85.0 million, representing an increase of $13.1 million or 18.2 per cent compared to the nine months ended September 30, 2004.

Direct expenses for the quarter ended September 30, 2005, were $22.6 million, an increase of $1.2 million or 5.7 per cent compared to the third quarter of 2004. Fuel expenses increased by $1.6 million to $8.4 million for the quarter ended September 30, 2005, an increase of 23.0 per cent over the third quarter of 2004. Fuel cost increases were recovered from customers through fuel surcharges. Direct expenses for the three quarters ended September 30, 2005, were $65.3 million, an increase of $8.1 million or 14.1 per cent from the comparative period of 2004.

Selling, General and Administrative expenses for the third quarter were $3.5 million, an increase of $0.4 million or 11.0 per cent from the third quarter of 2004. The increase is generally attributable to the addition of new employees to support the growth in business. Selling, General and Administrative expenses for the nine months ended September 30 were $10.6 million, an increase of $1.4 million or 15.5 per cent from the comparable period in 2004.

EBITDA was $4.3 million for the three months ended September 30, 2005, up $3.2 million or 301 per cent from the comparative period of 2004. The improvement in EBITDA can be attributed to an increase in cargo and ACMI revenues while utilizing the existing fixed cost base, offset by an increase in general and administration expenses. It is also reflective of the impact of lower actual aircraft heavy maintenance expense as compared to 2004. Nine-month EBITDA of $11.0 million was an increase of $5.3 million or 93.8 per cent compared to the nine months ended September 30, 2004.

The Fund had distributable cash of $2.7 million for the three months ended September 30, 2005. This figure is not comparable to prior periods due to changes in the Fund’s capital structure. Cash distributions declared in the three months ended September 30, 2005, totaled $2.46 million. The payout ratio for the third quarter was 91 per cent.

Conference Call & Webcast
Management will host a conference call at 2 p.m. ET on Tuesday, November 15, 2005, to discuss the results. Please call 416-340-8010 or 1-866-540-8136 to access the call. The call will also be available by instant replay until November 29, 2005. You may dial into the following numbers to access 416 695 5800 or 1 800 408 3053 and the access code is 3166447#. The call will be archieved on our website at www.cargojetincomefund.com.

Non-GAAP Measures
EBITDA and distributable cash are non-GAAP financial measures, but management believes they are useful in measuring the Fund’s performance. Readers are cautioned that these measures should not be construed as alternatives to net income or loss or other comparable measures determined in accordance with GAAP as an indicator of the Fund’s performance or as a measure of the Fund’s liquidity and cash flow. The Fund’s method of calculating non-GAAP measures may differ from the methods used by other issuers and accordingly, the Fund’s non-GAAP measures may not be comparable to similarly titled measures used by other issuers.

About Cargojet
The Fund, through its subsidiaries, operates a fleet of aircraft that provide overnight air cargo services to 13 Canadian centers each business night, carrying more than 500,000 pounds of cargo nightly. The overnight air cargo service is designed specifically to meet the time-sensitive needs of couriers, freight forwarders, and manufacturers. Cargojet also leases aircraft and crew for cargo and passenger services. The Fund commenced operation upon completion of its initial public offering on June 9, 2005.

Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of applicable securities laws. These statements concern anticipated future events, results, circumstances, performance or expectations that are not historical facts. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties that can affect our actual results and could cause our actual results to differ materially from those expressed or implied in any forward-looking statement made by us or on our behalf. These statements are made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

For additional information, please contact:

Pauline Dhillon
VP Marketing, Public and Government Relations
905-501-7373 ext 134
pdhillon@cargojet.com