Air Transport Services Group (ATSG) has reported a strong rise in revenues and earnings in the fourth quarter (Q4) and the full year ending 31 December 2018.
The provider of medium widebody aircraft leasing, air cargo transportation and related services said revenues in Q4 were $280.8 million, up on the $221.2 million in Q4 2017. Adjusted earnings came in at $24.1 million in Q4 2018,compared to $19.6 million in Q4 2017.
Revenues increased 15 per cent in 2018 as a whole and adjsuted earnings were up 42 per cent.
Capital expenditures in 2018 included $197 million for the acquisition of eight Boeing 767 aircraft and freighter modification costs, versus $209.4 million for eight Boeing 767s and two Boeing 737s plus modification costs in 2017 and $855.1 million for the acquisition of Omni Air International in November.
ATGS president and chief executive officer, Joe Hete said the company delivered on its 2018 commitments to meet demand for its freighter aircraft by deploying ten of them during the year, while securing additional assets and businesses to ensure its growth and diversify its customer base far into the future.
He added: “Our 2018 Adjusted EBITDA increased 16 per cent to $312.1 million, our second straight year of double-digit growth in that financial metric.
“Our acquisitions of Omni Air and rights to twenty more 767 feedstock aircraft from the fleet of American Airlines, plus the extension and expansion of our agreements with Amazon, have strengthened our platform for sustainable, profitable and diversified growth with some of the world’s largest entities.
“With ninety aircraft in service providing solid incremental returns, we are poised for strong growth in 2019 and superior long-term returns for our shareholders.”