Air Transport Services Group (ATSG) has today reported consolidated financial results for the third quarter (Q3) ending 30 September, 2018 and said revenues and earnings climbed.
Q3 2018 customer revenues were $204.9 million based on revenue recognition standards adopted in 2018. Q3 2017 revenues were $182 million excluding $72.1 million in revenues from reimbursed expenses.
Earnings from continuing operations were $32.9 million in Q3 2018 versus a loss of $28.2 million in Q3 2017. Adjusted earnings from continuing operations were $21.5 million up 40 per cent from $15.3 million in Q3 2017.
Adjusted earnings from continuing operations exclude the net effects of warrants issued to Amazon.com, including a $33.2 million loss from mark-to-market warrant revaluation in Q3 2017, and a $2 million Q3 2018 share of development costs for ATSG’s Airbus A321 freighter conversion joint venture.
Adjusted EBITDA from continuing operations was $74.3 million, up 13 per cent.
ATSG president and chief executive officer, Joe Hete said: “In the third quarter, we continued to grow revenues and deliver increases in Adjusted EBITDA. Our airline businesses performed well and are expecting a good peak season.
“We intend to add five more 767-300 freighters, including three more external dry leases, to our in-service fleet by the end of the year, or all ten of the 767s we planned to deliver in 2018.
“Additionally, we expect to dry lease two 767-200 freighter aircraft, currently on lease to our airline affiliate, to external customers by year-end. That does not include the thirteen Boeing 767 and 777 passenger aircraft we expect to add in November when we complete our all-cash purchase of Omni Air International.”