Cargojet Inc. has reported a steep 70 per cent decline in quarterly profit as cross-border trade tensions disrupted shipping and supply chains, reported the Canadian Press.

The Mississauga-based air freight firm posted net earnings of $8.8 million for the quarter, down from $29.7 million a year earlier. Revenue fell to $219.9 million from $245.6 million, despite stronger domestic traffic.

Adjusted earnings dropped to 32 cents per share, well below analysts' forecast of 96 cents, according to LSEG Data & Analytics. This compares with $1.48 per share in the same period last year.

Cargojet operates a fleet of 41 aircraft, serving domestic routes, ad hoc charters and regular charter services for clients such as DHL under ACMI agreements.

Co-CEO Jamie Porteous said the company's domestic network revenue rose more than six per cent year-over-year, demonstrating resilience despite macroeconomic headwinds affecting ACMI and charter operations.

Mr Porteous will retire on January 1, leaving co-CEO Pauline Dhillon in charge. He will remain as strategic adviser until the end of 2026.

Ms Dhillon, a founding partner, has held roles as chief corporate officer and head of marketing and government affairs.

Earlier this year, both executives expressed hope that US tariffs could lead to new supply routes. Mr Porteous cited Cargojet's charter service from China to Canada as a way to bypass American import duties.

"This remains a very fluid situation," Mr Porteous told analysts.