Consumer spending drop dents Cargojet earnings: CEO

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MISSISSAUGA, Ont. — The slide in consumer spending has squeezed Cargojet Inc.'s bottom line, its CEO says, as Canadians shell out less on goods that land on shelves and doorsteps after a trip by air freighter.

"Higher interest rates are starting to impact the household disposable incomes and we are observing a division in household spending," chief executive Ajay Virmani said in a statement Tuesday.

Virmani said Tuesday the company is trimming capital expenditures and"working on identifying every cost saving opportunity." "Canadians are spending nearly 10 per cent more on essential items than they were just one year ago. At the same time, the surge in discretionary spending has dissipated."

 

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