ATSG’ revenue uptick

A boost in US military contracts and aircraft maintenance services saw aircraft lessor Air Transport Services Group (ATSG) record an eight per cent rise in revenues to $149.6 million for the 2014 second quarter.
Joe Hete, president and chief executive of US-based ATSG, said: “The second quarter provided strong evidence of the efficiency with which our businesses convert revenue growth into cash flow and higher earnings.
“The new agreements with Amerijet and Cargojet we announced in May, including dry leases of four more of our 767s, led to the return of several B767 freighters from our airlines to our leasing business, Cargo Aircraft Management.
“That shift, plus significant reductions in personnel related costs, fewer heavy maintenance checks in the second quarter, and stronger returns from our operations for the US military, led to a profitable quarter in our ACMI Services segment.”
Nasdaq-listed ATSG said that CAM has also agreed to purchase two B767-300 freighters from Guggenheim Aviation Partners, both of which it currently operates under lease.
At the end of June, CAM owned a fleet of 51 Boeing cargo aircraft. Four CAM-owned B757 combis have entered service since the first one was deployed in June 2013, and three DC-8 combis were retired. One more B767-300 freighter was added earlier this year.
In a company outlook, Hete said: “The broad interest in our aircraft that we noted in May has persisted into the summer. We expect our cash flow this year to continue to benefit from operating gains from additional aircraft leases, plus reduced pension funding obligations."