Record B767 deployments boost ATSG in 2020
03 / 03 / 2021
By Rachelle Harry
Aircraft lessor ATSG has achieved increased revenues for the full-year 2020 following a record number deployments of converted freighters.
The Wilmington-headquartered company reported a 8.1% year-on-year increase in customer revenues to $1.6bn and a 9.5% year-on-year increase in adjusted ebitda to $497m.
During 2020, ATSG achieved 11 deployments via external lease (and 13 leases overall) of newly converted Boeing 767 freighters, plus re-deployments of three other Boeing 767s.
Additionally, it obtained a broader base of lease customers, as ts subsidiary company CAM delivered aircraft to seven lessees in five countries. These include including Astral Aviation in Kenya, MasAir in Mexico, Raya Airways in Malaysia and CargoJet in Canada.
The company also invested in new technology to better track, record and monitor the performance of aircraft in flight, as well as improving access to aircraft records.
Rich Corrado, president and chief executive officer of ATSG, commented: “Last year was a very good year for ATSG and its family of companies, despite the significant challenges of the pandemic.
“We delivered a record number of Boeing 767 cargo aircraft to a record number of lease customers, and flew more hours of passenger and cargo aircraft operations overall than ever before, and we delivered our best service performance of the year for our key customers during the peak season.
“However, the pandemic had a greater impact on our businesses in the fourth quarter than previously. We did not replace contracted passenger charter business with ad-hoc passenger flying to the degree we had in prior quarters, and continued to have limited access to certain combi destinations.
“We are grateful for the federal grant funds that have allowed us to retain employees despite impacts on our airline revenues. Those employees delivered superior customer service throughout the year, including record-setting performance levels during an exceptionally busy holiday season.”
Looking ahead, Corrado added: “ATSG’s aircraft leasing demand will remain exceptionally strong this year, and is already generating interest for next year and beyond, as the extraordinary growth in e-commerce shopping continues to create demand for transport and logistics networks to move more online-purchased goods faster than ever.”
Looking at its different divisions, Cargo Aircraft Management (CAM) saw revenues in 2020 increase by 8.1% to $309m and pre-tax segment earnings increased by 12.8% on a year earlier to $77.4m.
ATSG’s ACMI business saw revenues increase 6.3% to $1.1bn and pre-tax earnings were up 108.7% to $66.8m.
ATSG’s airlines operated seventy-three aircraft at year-end 2020, including twenty-seven leased internally from CAM.
Looking forward and taking the effects of the pandemic into consideration, ATSG said it expects adjusted Ebitda for full-year 2021 to be approximately $528m – 6% higher than 2020.