ATSG confident about an uncertain future

AIR Transport Services Group (ATSG) has announced larger than expected increases in its revenue and profit for the third quarter. 
However, with the company just having lost its major customer from the US domestic market, DHL Express, it remains to be seen how the company holds up in 2009.
The cargo airline holding company posted third-quarter net income of US$5m, or $0.08 per share, compared to $2.4m, or $0.04 per share, in the quarter a year ago. 
Revenues grew to $403m from $286m. The single analyst who covers the company had expected earnings per share of $0.05.
Joe Hete (pictured), president and chief executive officer, says ATSG plans to sell to DHL the aircraft that the package shipping firm no longer needs as once DHL closes its Wilmington hub. 
With the proceeds, ATSG will convert its remaining 767 aircraft and lease them, or use them in its cargo business.
“That’s how we will emerge from this transition as a strong, flexible and highly competitive global air cargo service company,” Hete adds.

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