Good morning, everyone, and thank you for joining us today on this call. With me on the call today are Ajay Virmani, Executive Chairman; Pauline Dhillon, Chief Executive Officer; Aaron McKay, Chief Financial Officer; Sanjeev Maini, VP Finance; and Remy Tremblay, General Counsel and Corporate Secretary.

After opening remarks about the quarter, we will open the call for questions. I'd like to point out that certain statements made on this call, such as those relating to our forecasted revenues, costs, and strategic plans, are forward-looking within the meaning of applicable securities laws.

This call also includes references to non-GAAP measures like adjusted EBITDA, adjusted earnings per share, and return on invested capital. Please refer to our most recent press release and MD&A for important assumptions and cautionary statements relating to our forward-looking information and for reconciliation of non-GAAP measures to GAAP income.

I'll now turn the call over to Pauline.

Thank you, David. Good morning, everyone, and thank you for joining us today.

We delivered another strong quarter, demonstrating once again the resilience of Cargojet's business model and the strength of our long-term customer relationships, despite continued market uncertainty. These results would not have been possible without the dedication of our team members.

I would like to take a moment and sincerely thank every member of the Cargojet team for their continued commitment and outstanding efforts, as well as thank our customers for continuing to trust Cargojet with their time-sensitive shipments each day. Our premium service, built on reliability and consistency, continues to differentiate Cargojet.

Once again, we delivered an industry-leading on-time performance of 99.2%, reflecting the operational excellence our customers have come to expect. Throughout the quarter, we remained focused on what we can control: delivering exceptional service, operating safely and efficiently, and deploying our fleet where it creates the greatest long-term value.

Our one-fleet approach continues to be a significant competitive advantage. It gives us the flexibility to dynamically deploy aircraft across our network, improve utilization, and pursue the highest return opportunities as market conditions evolve.

Higher fuel prices and ongoing geopolitical uncertainty remained headwinds during the quarter. Despite those challenges, our resilient business model, disciplined execution, and focus on our customers enabled us to deliver another strong quarter.

Aaron will provide additional details on our financial performance in a few moments. Before turning to our business segments, I'd like to briefly comment on our recently completed pilot agreement.

We are pleased to have reached a well-balanced 5-year collective agreement that recognizes and competitively compensates our pilots while preserving the flexibility and productivity that support Cargojet's long-term competitiveness. The agreement also continues our long-standing no-strike, no-lockout provision, providing stability and operational certainty for our customers, our pilots, and our valued team members.

I would like to sincerely thank our pilots, ALPA, and everyone involved for their professionalism throughout this process. As customer agreements come due, we will look to pass these costs through.

Many of these conversations have begun, but we anticipate a lag in timing. We look forward to building on this partnership over the next years.

Turning to our business segments, our domestic overnight continued to perform well and remains the foundation of Cargojet's business. Supported by a strong customer demand and exceptional service, it continues to play an essential role in Canada's supply chain.

Charter flying delivered another strong quarter, including continued support flying for UPS. This business segment continues to enhance fleet utilization, strengthen customer relationships, and create long-term value.

This year, we were proud to celebrate 25 years of partnership with UPS. We are pleased to continue to fly their charters for the remainder of the end of this year to the end of Q4.

We look forward to supporting their continued growth for years to come. One of Cargojet's greatest strengths is our diversified portfolio of long-term customer relationships across our domestic overnight network, charter business, hybrid ACMI, interline, and international operations.

That diversification provides resilience, creates flexibility, and positions us well to navigate changing market conditions while continuing to create long-term value for our shareholders. Our European hub in Liège continues to exceed our expectations.

Strong demand, including our recently launched Liège-Tel Aviv service, demonstrates the opportunities to grow our international network by leveraging existing assets while improving fleet utilization. We believe this model can be replicated in other regions as we continue expanding our global footprint.

Our interline business also delivered another excellent quarter, while growing volumes from our airline partners, further strengthening our domestic network and improving fleet utilization. Our ACMI business remained stable during the quarter and continues to provide an important source of diversified revenue.

As opportunities emerge, we will continue allocating aircraft where they generate the strongest long-term returns. Overall, we are very pleased with our performance for the quarter.

Looking ahead, we expect the global economic and geopolitical environment to remain uncertain. However, Cargojet has successfully navigated changing market conditions for more than 2 decades by staying focused on what matters: our customers, our people, and disciplined execution.

We remain confident in our strategy and in the strength of our business. We have exceptional people, longstanding customer relationships, and a resilient operating model that has consistently performed through changing market conditions.

Together, these strengths position Cargojet to continue creating long-term value for our customers, our team members, and our shareholders. With that, I'll turn the call over to Aaron.

Thank you, Pauline, and thank you to everyone for joining us today. Our positive results this quarter reflect the organizational agility that is foundational to Cargojet's business and our ability to deliver disciplined growth across market cycles, as we generated $275.8 million of revenue and $87.3 million of adjusted EBITDA, improvements in each metric both sequentially and year-over-year.

As Pauline mentioned, the rising price of fuel had an impact on our results this quarter, and I think it's worth taking a moment to walk through how. Like other industry players, Cargojet generally passes on fuel cost to customers through a surcharging mechanism.

Because fuel surcharges increase revenue in direct proportion to changes in fuel costs, we do not expect them to have a material long-term impact on profitability. As a result, when fuel surcharges increase significantly, reported adjusted EBITDA margins can become temporarily diluted.

In the second quarter of 2026, that dilution amounted to approximately 260 basis points of margin, with no material impact on adjusted EBITDA itself. During the second quarter of 2026, excluding the impact of fuel price increases versus the second quarter of 2025, we generated revenue of $250.1 million, an increase of $11.9 million or 5% year-over-year.

Our domestic overnight network generated second quarter revenue, net of the impact of fuel price pass-throughs year-over-year, of $104.9 million, an improvement of 3% year-over-year and a slight improvement sequentially. During the second quarter of 2026, our hybrid ACMI business generated revenue of $54.7 million, representing a slight sequential improvement from the first quarter of 2026, but a 12% decline year-over-year, as the transition from east-west transoceanic flying to north-south intra-Americas flying had not been fully completed in Q2 of 2025.

Our charter business continued its strong performance during the second quarter, generating $54.7 million of net revenue, representing 37% year-over-year growth, as we continued to see success with our Liège service, Central and South American charter partner, and support flying for a previous MD-11 operator. While long-term visibility remains somewhat limited, priority air cargo continues to be one of the few reliable options for customers requiring certainty and speed in moving critical shipments.

This makes it a valuable service for many customers despite the current market environment. Our revenue growth, combined with our continued focus on revenue quality, cost control, and fleet and flight level asset utilization, resulted in another strong quarter of adjusted EBITDA.

Adjusted EBITDA was $87.3 million, compared to $80.2 million in the same period last year, while adjusted EBITDA margin of 31.7%, when adjusted for the approximately 260 basis point compression as a result of fuel price increases, represented a slight year-over-year improvement in the core business. Our focus on fleet and flight level asset utilization and ongoing cost management initiatives contributed to strong free cash flow generation of $56.2 million during the quarter.

This represents a significant improvement from the $72.5 million cash outflow experienced in the second quarter of 2025. Our capital priorities remain unchanged, and our strong free cash flow generated during the quarter further supported our deleveraging efforts, resulting in a reduction of our leverage ratio to 2.6 times at quarter end, well on the path to our objective of below 2.5 times.

Consistent with our capital allocation priorities and our commitment to returning capital to shareholders, we also repurchased 121,390 shares during the second quarter of 2026. We will continue to evaluate opportunities to repurchase shares when we believe they represent an attractive use of capital.

Before I conclude, I want to provide some additional context regarding our recently completed 5-year pilot agreement. As Pauline noted, we're pleased to have concluded a new agreement with our pilot group that moves us more towards market standards of both compensation and operational productivity.

Effective July 1st, 2026, our pilots will see a wage increase of 26%, followed by annual increases of 5% each over each of the subsequent 4 years through June 30, 2031. Just as the agreement brings our pilot group more in line with market on wages, it also includes several productivity provisions which bring us closer to market standards, including moving us from a baseline of 15 to 16 working days per month, with an option for those who value the current work-life balance to stay at 15 days for most of the year with proportional compensation.

These improvements bring our business more in line with the market. As Pauline noted, a key component of this agreement is the continued inclusion of the no-strike, no-lockout provision, which recognizes the different operational requirements between cargo and air passenger carriers, as the provision provides our customers with confidence in the continued reliability and stability of our operations.

For clarity, crew costs as reported in our financial statements include several costs which are not directly driven by wages, including per diems as well as hotel and transportation costs. Costs driven directly by wages have historically represented approximately 60% to 65% of the total crew costs reported in our financial statements.

Overall, we believe this agreement provides the appropriate balance between recognizing the important contribution of our pilots, maintaining our competitive position, and providing the long-term operational certainty required by our customers. Absorbing these costs without long-term impact to our margins is critical to our business.

As we've been focused on cost control initiatives for some time, and as Pauline mentioned, as customer agreements come due, we will look to pass through the additional cost increases. That'll take some time to work through, but I'll note that some of these conversations have already begun.

With that, I'll hand the call back to Pauline.

Thank you, Aaron. In previous quarters, we have highlighted the elevated levels of volatility and uncertainty across our markets.

As we move through the third quarter, these challenges remain, but we are also seeking new opportunities to emerge. Our partners continue to grow, which gives us confidence that their growth will create additional opportunities for Cargojet.

More importantly, we remain focused on pursuing selective and accretive international growth opportunities that leverage our existing fleet. We have said many times that Cargojet is built for change.

What has become evident during this quarter is that we are also built for disciplined growth. Our business continues to evolve.

Over the past several quarters, we have challenged ourselves to identify opportunities for improvement across our entire organization, from finance to sales, and technology to operations. While the foundation of Cargojet will always remain the same, a stronger and more agile Cargojet continues to emerge.

I understand that change can be challenging. That is why I want to extend my sincerest and deepest appreciation to the entire Cargojet team.

It is their hard work, their commitment, and their belief in this organization that continues to drive our success. With that, operator, we'll take questions.

Thanks and good morning, everyone. Congrats on a good quarter.

Thanks, Konark.

Morning, Pauline. I want to dig into the ACMI segment a little bit here.

DHL recently reported their quarterly numbers and seems like they are seeing a volume inflection in their express segment. I guess those are your customers, obviously one of the biggest customers you have.

Just curious, when do you see the inflection in your ACMI business with them? Is there any disconnect between what you do versus what they are seeing in their volumes, or they haven't yet given you sort of incremental volumes for the next little while?

Konark, I'll take that question. No, they haven't given us any indication at this time, but we have a very strong relationship with ACMI with DHL.

We've always been their first in and last out operator. As their volumes continue to grow, we definitely look at that as opportunities for Cargojet's ACMI growth.

The only other thing I'll add there, it's Aaron here, Konark, the other thing maybe I'll add is, by the end of Q2 last year, we had completed the transition to the north-south intra-Americas flying for them. I would expect from a comp perspective, as you look forward to future quarters, you'll be more in line, you won't see the same annual declines.

I see. The comp effect will normalize going forward in the second half, right, but we should not expect maybe a big turnaround in volumes, if I understand correctly?

We anticipate that they will grow, because that's where they're trending at this point. Their projections for Q3, Q4 have all indications that ACMI and their volumes will grow.

As I stated earlier, we are their first preferred partner of choice, we're the first in and the last out. As market trends change and global flows increase, we are positioned well to take on any additional ACMI flying that they may have.

Understood. That makes sense, thanks.

Maybe Aaron on the fleet side, it seems like you haven't changed anything for the fleet plan, but I noticed that a 767-200 that you guys are converting right now that's coming in 2027, looking to offload that. What's the rationale for not including in your fleet?

Do you have enough capacity to absorb future demand? Do you have any excess fleet from the recent transaction with 21Air that you might also be looking to divest?

Konark. We've been looking for the last little while at an exercise of sort of cleaning up the balance sheet and looking at assets that we can either make use of or monetize.

This is one of those two airframes that we've mentioned in previous quarters we've had as feedstock. This is part of those efforts of looking to clean up the balance sheet.

Right now, we haven't added it to the fleet plan because we're considering some opportunities to divest an aircraft. To your point, I think, we've said for the last year, if and when we have material accretive growth opportunities that we can generate strong ROIC with a new asset, we'll look to do that.

No, appreciate it. Thank you.

Hey, this is James McGarragle. I'm on for Walter this morning.

Good morning.

Hi, James.

Hey, just wanted to get a progress update on the revenue per aircraft or the one-fleet strategy. You mentioned last quarter some of the DHL aircraft are now available for incremental charter opportunities.

Can you just quantify how much incremental revenue was generated in Q2 from DHL aircraft, and how much more opportunity is there from here with this strategy as we look into the back half and into 2027?

I think it's going to be tough for us to specifically say how much incremental revenue was generated from those particular aircraft. I think we'll continue to look at opportunities where either aircraft are underutilized or they're sitting for a period of time.

A great example is Pauline mentioned in her prepared remarks the launch of our service from Liège to Tel Aviv. When we launched the Liège service earlier this year, we mentioned that it was using an aircraft that was otherwise idle over the weekend.

That aircraft in Liège sits for a period of time, and so we've been looking for opportunities to use that, and Tel Aviv emerged as a winner for us. From an overall network point of view, it's looking at those sorts of opportunities of where we can pick up incremental work with aircraft that are otherwise sitting.

James, just to add to what Aaron said, our one-fleet strategy is working well for us. It's improved our yields without growing any capex.

Just to add on what Aaron saying, we are exploring opportunities to utilize our fleet, but ensuring that we have the most accretive routes that we deploy on. The hybrid ACMI fleet has also allowed us to operate for that customer on their schedules and block hour agreements that we have in place, but we're able to utilize those assets when they are sitting idle.

We're doing a number of charters from Miami into South America, into North America. To further Aaron point, when the assets are sitting in Canada and they're not being utilized, whether they're on the East Coast or the West Coast, we're deploying those assets.

In November, when we launched the Liège route, we were very optimistic with it, and today we're very pleased with it. We were able to extend that, and today, when the asset would remain here in North America, it's being utilized to fly to Liège, and we've been exploring opportunities and we continue to explore opportunities, and we're very successful into going into Tel Aviv.

On the other side of the nation, on the West Coast, we are now looking at charter opportunities into China with those assets that sit in Vancouver. We're constantly looking for new opportunities with the one-fleet strategy, and we're very pleased with the outcome of it.

I hope that answers that question.

Did. Appreciate the color.

Then just on the charter business, obviously, that was a standout in the quarter. Can you just help us break down and understand how much was driven by sustainable new routes, any impact from the MD-11 grounding, and potential one-time ad hoc activity?

Just want to get a better understanding with the MD-11 winding down to Q3 or potentially into the back half of the year, how we should be thinking about the charter run rate ex the MD-11 uplift.

The MD-11 is now extended until Q4. It's really hard for us to determine on the charter revenue per aircraft, primarily because that's what we do, we look for opportunities to utilize the assets when the assets are not operating, whether they're for the ACMI customer or for the domestic network.

Appreciate the color, and I'll turn the line over. Thank you.

Thanks very much. Good morning.

Morning, Tim.

I guess my first question, returning to the new pilot agreement, you've outlined the annual wage increases there, while highlighting kind of the productivity improvements. I just want to focus on that a little bit, because that's obviously an important component to forecasting over the next couple of years, as opposed to just thinking about the wage increases.

Is there any sort of more color you can provide us to kind of help in terms of kind of shaping up expectations on what productivity improvements really mean and how we should think about those in terms of our modeling and forecasting going forward?

Tim, it's Aaron here. I think one of the things I mentioned in the prepared remarks was this moves us closer to sort of an industry standard of workdays per month.

I think everyone we've talked to knows that we've been a bit low on that metric versus the rest of the market. What that means is the pilot group will be flying a bit more per person, and so it'll probably take a little bit of time to fully realize the benefits of that as we grow into it.

Our pilot group today is, I think, of a good size for our business. As we've spent some time over the last year optimizing for the reserve pool and overtime.

I think as we continue to grow through the next couple of quarters, you'll see us utilize that additional time more and more effectively.

Tim, it's Ajay. As Aaron indicated that our workdays used to be 15 per month per pilot is now going up to 16, and also some of the training days, which would be say over the next year at least 2 to 3 training days on top of that a year.

As we move forward with the wage increases which were behind the industry, our productivity also lagged, which is now becoming closer to the industry as well. While giving the pilots flexibility if they want to work less, 15, then they get prorated and get paid less.

While the wages are now matching the industry, the productivity is also catching up with the industry, which we lagged. I think combined that with our ability, when the contracts with the customers come due, to ask for those increases will put us in a better position overall.

Okay. Then my second question related, as we look at crew costs today, I know last year there were some heightened costs related to training and to overtime, if I'm not mistaken.

Have those sort of impacts more or less normalized now as we think, if we look at Q2 as sort of a base case or are they still sort of higher than they would be at a steady state under normal conditions?

I think some of them have normalized in Q2, but with these productivity improvements, they would further be normalized or get reduced as we go on.

That's great. Thank you very much, Ajay.

Thanks. Good morning.

I want to ask about the domestic network, just if you can comment maybe on what kind of trends you're seeing there, obviously, some decent revenue growth, but just what do you see into Q3 and Q4 from your customers there, and have you got any, I guess, early indication on peak volumes from your customers yet, or is it maybe too early to tell?

No, I'll take that question. July's been strong.

We are continuing to see strong growth in our domestic, probably driven by e-commerce. I often refer back to a change that we've seen in patterns here to secondary markets.

When the Hudson's Bay sort of closed their doors, we've seen more B2C. It seems like the secondary markets now are not going to retailers.

Retailers aren't carrying inventories as they were, they're moving into more of warehousing. We're seeing an uptick on e-commerce, primarily into the secondary markets.

We anticipate domestic to remain strong for Q3 and Q4.

Okay. That's helpful.

Just going back to the I guess the fleet and maybe I guess more specifically the capex expectation for this year, is there any, I guess, change to the gross capex number you expect for 2026? I guess is there any, I guess, change on, I guess, the outlook into 2027, specifically around maintenance capex?

The only change I would say at this point, Cameron, is we noted in the MD&A that came out a little earlier that we did decide to take one of the feedstock 767-200s and put it through conversion. That'll add $10 million to $15 million of capex this year and maybe $5 million next year.

No, that's

I think, Cameron, the key is that all capex that Aaron just talked about will be either matched with increased demand, or we have potential to lease these aircraft out if we don't need it. It'll not just will be sitting idle.

No, perfect. That's helpful.

I'll pass the line. Thanks very much.

Okay.

Good morning, everyone, and congratulations for the solid results. Maybe, Pauline, could you discuss about the upcoming customer agreement up for renewal this year and what you would expect in terms of pricing?

Good morning and thank you, Benoit. There are no customer agreements coming due, the contract customers, this year.

The next ones will be 2029 and 2030. We are speaking to customers about this new increase, and we are passing it through where we can where the pilots are concerned.

We are looking at certain customers that do have shorter-term contracts, and we are introducing these new costs to them.

Okay. That's great.

Last quarter, you provided a good update on the international opportunities and countries that you've been looking at. Could you maybe provide an update on the discussion you're having, whether you added some geographies and whether there are some that are close to the finish line?

Absolutely. We've added Tel Aviv this last quarter.

Q1 was focused on Liège. We built that lane, we built a lot of trade between Canada and Liège, and now we've extended Liège to Tel Aviv.

We are in a lot of conversations, still pursuing Africa, the Far East. We are doing charters now back from Western Canada into China.

We look for opportunities there, again, with the fleet sitting on the weekends. We're utilizing the assets well, and we continue to look at opportunities throughout Europe and Far East Asia, as well as Africa and the Middle East.

That's great. Thank you very much for the color.

Thanks, Benoit.

Thanks, Benoit.

Hey, thanks for taking my questions here. Maybe just not to belabor the point on the new labor agreement and how it flows through our models.

I guess if I just think of it simplistically, adjusting for some of the stock-based comp noise in Q2 and looking at Q1 as well, you're kind of run-rating about $27 million a quarter of crew costs. Aaron, I think you said about 60% to 65% of that is wages.

Am I just applying a 26% lift to that, starting in Q3 here, and then just adding kind of the 35% of that $27 million? Is that kind of the simple way to think of it?

If I ran the math, so that gets me around $31, $32 million a quarter. Is that kind of the right ballpark to think about where crew costs go from here on?

I think at a gross level, that's the correct math. There's going to be the offsets that we'll get out of the productivity in there.

Right.

I think if you look at the math of 16/15 of work is probably a good way to look at the math there, plus just like Ajay just said, there's a couple of training days.

Okay. I guess if I think of that productivity, I guess simplistically as you and Ajay said, you're going from 15 to 16 days, that's I guess a 6% offset.

Is I guess that's the offset you're talking about against that 26% wage increase?

Kevin, that's exactly right. You've got one day equals 6.5%, I guess, of productivity, plus some training days as we go.

In the first year, we get one training day, then the second year two, in the third year three, and fourth year four. Over the course, we'd be looking at probably average two additional training days a year that we get on top of that.

Also, not just the productivity, but it also gives us opportunities to be more price competitive with American carriers that we constantly compete with charters. Now we have a lot more crew days.

If you look at the total crew days, we gain about 6,000 crew days here, over the year. That productivity gives us a lot more pricing flexibility, long-term sustainability, and also reduces the need for overtime that we had.

It's a very well-balanced agreement where the industry's productivity and wages are now closer to the market than they were.

That's helpful. Pauline, you mentioned some of the longer-term contracts will take a little bit of time to reprice on this new labor agreement.

I guess for ACMI and charter, I often think of those as you're kind of pricing that in real time. Is there a way to think about maybe the potential revenue step-up here, if we just assume let's say the amount of flying is the same, but just related to this labor contract?

Is it something that could be relatively material on a quarter-over-quarter basis, just as you look to reprice those rates to reflect the new labor agreement?

Kevin, that's absolutely correct. We're going to reprice that.

We're also looking at the mid-market customers, where we're aligning that pricing, because that's subject to annual pricing versus contract pricing. All of those are being adjusted accordingly.

Kevin, you're right on the charters and ACMI and some of the other stuff which is real-time pricing, that new pricing will be taken into account for the quotes and all that stuff is provided.

That's helpful. Maybe last one for me, and maybe I'll borrow from James's question earlier, maybe ask it a little bit differently.

It looks like when I look at the last, let's say, 2 to 3 quarters, your EBITDA per block hour has seen a step-up here, maybe closer to what you were seeing during the pandemic actually, when clearly the market was in a different place. Feels like some of this might be related to the one-fleet strategy.

Just wondering, how should we think about EBITDA per block hour? Is there a lot of upside here still even with the lift you've seen over the past 2, 3 quarters, just given some of these initiatives you've been pursuing?

Before Aaron and Pauline answer, one of the strategies that Pauline has implemented is quality of revenue and revenue enhancement. It means quite a bit of yield management.

Quality of revenue means stuff that's not profitable or that shouldn't be on our flights because it's not time-sensitive and we were pricing it with passenger carriers, those were the days of the past, so. I think that you'll see that the revenue enhancements and revenue improvements, yield improvement initiatives that have been started a number of months ago are paying dividends now.

I'll let Aaron and Pauline comment on the rest of it.

Thanks, Ajay. Kevin, I'll put it really simply.

We've recognized that we're the best steakhouse in the city, and we're not going to charge Keg pricing anymore. We're realigning our revenue.

We're looking at better revenue quality, we're looking at routes, we're looking at lanes, we're looking at everything and we're reassessing our pricing, we're looking at mid-market. The e-commerce is certainly surging, we're looking at mid customers, we're expanding and we're looking at our DIM factors, we're looking at utilization of the aircraft, that's why you see a big bump in interline.

We're going out and having conversations with those customers, we're filling a lot of gaps that were in place and the domestic overnight previously to us looking at revenue quality.

I'll add, at the same time, we've been talking for the last 3, 4 quarters about how we're trying to pressurize the cost structure constantly. I think Cargojet has always been a nimble, lean carrier, but one of the things we're making sure we're watching as we look at revenue initiatives, to Pauline's point, is making sure that we're keeping the lid on costs at the same time.

That's very helpful color. Thank you very much.

Good morning. Thanks for taking my questions.

Maybe just start off with just in regards to volume growth in the domestic business for the quarter, could you let us know what that was outside of the CPI-related growth?

We don't report specific volumes on the domestic network. I think if you look at the financials, we think of the domestic network as the unit sort of being the operating day, and so if you look at the revenue per operating day, that's probably the right metric to think of as a unit growth.

We're seeing increasing growth on the e-commerce is coming from our mid-market customers.

Fair enough. I may have missed this one, but just on the capex for the remainder of the year, can you provide any color on how to think about that for Q3 and Q4?

No change to what we've talked about previously, other than, like we said, we've put 1 767-200 into conversion. That's likely to have somewhere in the range of $10 million to $15 million this year and maybe another $5 million next year.

To AJ's point, that's capex that will either be tied to meaningful revenue growth and EBITDA growth opportunities if they arise, or divestment opportunities, which is what we've got in the fleet plan right now.

Great. Maybe just one last one, just on the fuel surcharge revenue for the remainder of the year.

Should we look at it more as closer to Q1 levels, obviously from the Q2 hike, or maybe how to think about that for Q3 and Q4?

Look, the fuel has been so volatile and there's been a lot of reaction to each side of the current conflict in Iran saying certain things. I think our expectation right now is it remains elevated at the moment.

It seems like it's likely to remain elevated, but if I could predict the energy markets that well, I think I'd be a happy man.

Fair enough, Aaron. Thanks for the color.

Appreciate it. Pass it along.

Yes, thanks, folks. I guess maybe I'm just going to try to tie some of this together a little bit, because I think the question around the revenue efficiency, if I look at it and I look at, ex the fuel charge, the revenue was up about 7%, but block hours were maybe down 7%.

We think about that in context of the lower capital spending, maybe the more disciplined around fleet. How are you guys thinking about how that all combines going forward, thinking that you've got the MD-11s, that capacity you'll have to replace, and being able to maintain that quality of revenue in a capital-disciplined fashion?

How do we think about longer term into 2027 and 2028, how you're expecting to see return on invested capital trend and your thoughts around the business longer term?

Chris, I'll start maybe at the end of that question. Return on invested capital is something that I am laser-focused on.

It's one of the reasons we've been talking about cleaning things up on the balance sheet, and to your point, improving the quality of revenue, the quality of EBITDA. If you look at the trending in ROIC, particularly in the denominator, over the last two quarters, I think we've had ending invested capital start to come down from some of the peaks, 6 to 8 quarters ago, or 4 to 6 quarters ago.

Just because of the way the math works there and you do the average invested capital, there's a bit of a drag as you look at some of those peaks. It'll take us another 3, 4 quarters to get past that.

I think at that point, you'll start to see average invested capital in a more reasonable place at the same time as we're working on the NOPAT side. I think in general, what you're pointing at is exactly what we're trying to accomplish as a management team, which is be more efficient, work on higher-quality revenue, higher-quality margin with the assets we have.

No, I think you've summed it up well, Aaron. It's exactly what we've been saying on the call.

It's growth, international growth outside of the borders of Canada. It's utilizing the assets while keeping laser-focused on our costs.

Okay. I'll leave it there.

Thanks, guys.

Thank you, everyone, for participating on our call today, and we look forward to speaking to you next quarter. Have a great day.