ATSG reports double-digit growth in revenues and earnings

posted on 6th August 2019 by Justin Burns
ATSG reports double-digit growth in revenues and earnings

Air Transport Services Group (ATSG) has reported its revenue soared 64 per cent in the second quarter of 2019 to $334.6 million with Omni Air International, which it acquired in November 2018, the largest contributor to the revenue gain.

Each of ATSG’s principal business segments, aircraft leasing and air transport, all achieved higher revenues for the quarter ending 30 June.

Adjusted earnings from continuing operations increased by $1.7 million, or 10 per cent, to $18.7 million. Adjusted EBITDA from continuing operations were $104.8 million, up $35 million, or 50 per cent.

Contributions from Omni Air and from the increase in externally leased 767 freighters since June 2018 drove the majority of the increase.

ATSG president and CEO, Joe Hete said ATSG’s operating momentum continued during the second quarter, as flight operations for the Department of Defense and Amazon increased versus prior-year periods.

ATSG now expects a 36 per cent increase in Adjusted EBITDA in the second half versus a year ago, thanks to both increased flight operations and more leased aircraft in service.

“In December 2018, ATSG agreed to lease ten more Boeing 767-300 converted freighters to Amazon, anticipating five deliveries in each of the next two years,” Hete said.

“At Amazon’s request, we now expect to deliver them six 767 freighters this year, and the remaining four in 2020. The first of those six was delivered in June, the second in early July, and the third is due later this month. At the same time, we have agreed to lease four 767 freighters to United Parcel Service this year, starting in September.”

Hete added in both the leasing of converted freighter aircraft and flight and maintenance operations for customers, ATSG is executing according to its plans and on track for a very good 2019.

“We look forward to growth in our operations for the Department of Defense, and in fulfilling signed lease commitments from Amazon and United Parcel Service in 2019 for a total of ten converted Boeing 767 freighters.

“In 2020, we expect to deploy at least 10 more aircraft, four of which are under customer commitments to Amazon and one that we expect to lease to UPS next year,” he said.