ATSG reports 3Q profit up, extends DHL agreement

US-based Air Transport Services Group (ATSG) reported third-quarter net income up 27.0% y-o-y to $10 million, as total revenue rose 3.1% to $185 million. Operating income for the quarter was up 10.1% to $18 million, and CEO Joe Hete said “I’m confident that we’re heading for one of the best years in our history, given the scale of the business we have today.”

That scale is shown in the top chart. The ATSG fleet now includes 53 freighters and four combis, of which all but four 767-200Fs are owned.

Regarding the new DHL deal, ATSG said it had signed an agreement in principle with DHL Express that would see DHL “extend the leases for thirteen 767-200Fs [by an average of about 18 months, ed.], and execute new leases for at least two more freighters that currently support DHL under short-term agreements.” The new leases will commence by the end of the first quarter of 2015 and run through March 2019. This will, of course, provide stable income over the period of the leases, but comes at the cost of a decline in the lease rates. Also on the subject of DHL, the contrct under which ATSG operates four 767-200Fs on a CMI basis for the German integrator will end after the 2014 peak season, and will not be renewed.

Exit mobile version