Units of Cargojet Income Fund, a provider of air cargo services, fell 24 per cent yesterday after the company warned of lower second quarter results.

The company also said it was cutting distributions by nearly a third.

The fund's units fell $2.31 to close at $7.44 on the Toronto Stock Exchange after the Toronto company said it was paring its monthly distributions from 9.64 cents a unit paid in June to 6.75 cents for July.

The fund also said it expects lower distributions "for the forseeable future" although its business fundamentals remain strong.

Cargojet has been squeezed by lower customer demand as a result of a slowing economy in the United States and Canada, and said it faced an unforeseen increase in expenses because of delays in introduction of three freighter aircraft from the supplier.

Cargojet is Canada's biggest provider of time-sensitive overnight air cargo services, with 33 aircraft and operations across North America, including Hamilton's John C. Munro International Airport.