Freighter lessor ATSG's revenues on the rise
07 / 08 / 2018
US freighter lessor Air Transport Services Group (ATSG) reported 2018 second quarter revenues of $203.6m, an increase of 6% after excluding $61.1m in reimbursed expenses from 2Q 2017.
Adjusted EBITDA from continuing operations was $69.7m, up 9%.
Joe Hete, president and chief executive of ATSG, 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, which leases Boeing 767 freighters to Amazon’s Prime Air overnight US delivery network, continues to expect adjusted EBITDA from continuing operations for 2018 of approximately $310m, up 16% from 2017. Its aircraft leasing, airline operations, and MRO services are expected to deliver stronger results in the second half of 2018.
"At this point, our progress toward our 2018 targets is ahead of our plan," Hete said, adding: "Five of the ten additional B767s we originally targeted for deployment this year are in service, and we expect two more to be delivered in the third quarter and the rest in the fourth.
“We have continued strong interest from customers for the five B767s we expect to have in process as we enter 2019, including multi-aircraft placements."
ATSG also continues to project 2018 capital expenditures of about $300m. In addition to capital expenditures for aircraft and related freighter modification costs, 2018 outlays includes costs for the design and certification of narrow-body freighter and combi variants of the Next Gen Boeing 737-700.
ATSG’s earnings continue to reflect non-operating charges for the development of a narrow-body freighter version of the midsize Airbus A321-200 via a joint venture. The 737-700 project is due for completion and certification later this year. The Airbus joint venture project is expected to be completed in late 2019.