Toronto - Cargojet Inc. has signed a new agreement with DHL Network Operations (USA) to provide air transportation services for DHL's global network, which it says will boost profits and help diversify its services.

This agreement, which expands the relationship between the two companies, is for five years with the possibility of renewal for an additional two years. The financial terms were not disclosed.

Under the agreement, Cargojet will provide services to support DHL's international requirements for Europe, North, South, Central, and Latin America, as well as Asia.

Cargojet uses 12 cargo aircraft to serve DHL's current requirements.

DHL intends to add five additional B-767 cargo aircraft during the 2022-23 timeframe. It also plans to be Cargojet's launch customer for the long-range wide-body B-777 cargo aircraft, expected to start flying in late 2023 or early 2024.

Additionally, Cargojet will issue notes to DHL to acquire up to 9.5 percent of the outstanding voting shares at a price of $158.92 per share over seven years, with vesting tied to DHL delivering up to $2.3 billion in business during the same period.