Boeing 767 Freighter leases and airlines drove revenue and earnings growth in the second quarter (Q2) ending 30 June at the Air Transport Services Group (ATSG).
The provider of medium widebody aircraft leasing, air cargo transportation and related services said GAAP revenues were $203.6 million based on new revenue recognition standards adopted in 2018. Q2 2018 revenues increased six per cent after excluding $61.1 million in reimbursed expenses from Q2 2017 revenues
GAAP earnings from continuing operations were $24.5 million, compared to a loss of $53.9 million, in Q2 2017. Adjusted rarnings (non-GAAP) from continuing operations were $19.2 million, up 38 per cent from $13.9 million, in Q2 2017.
Adjusted earnings from continuing operations exclude the net effects of warrants issued to Amazon including a $63.4 million loss from mark-to-market warrant revaluation in Q2 2017, and a share of development costs for ATSG’s Airbus A321 freighter conversion venture.
Adjusted EBITDA (non-GAAP) from continuing operations was $69.7 million, up nine per cent.
ATSG president and chief executive officer, Joe Hete said, “Growth in our aircraft leasing and airline businesses led to another solid quarter for ATSG. We added four more 767 freighters to our dry-leased fleet, and expect to secure additional 767 aircraft for freighter conversion to meet 2019 demand.
“We are uniquely positioned with our assets and complementary services for another great year in 2018 and even better results in 2019.”
ATSG is comprised of ABX Air and Air Transport International (ATI), and subsidiaries PEMCO Conversions and Cargo Aircraft Management.