Diversification, robust demand for 767Fs elevate ATSG 3Q19 results

Air Transport Services Group ( ATSG ) reported an increase in customer revenue for the third quarter of 2019 of 79% year-over-year to US$366.1 million, partly because of the acquisition of Omni Air International in November 2018 but also because of strong demand for ATSG’s 767 freighters and flight operations. Operating income rose by almost 52% compared to 3Q18, to $40.8 million. Meanwhile, net earnings for the quarter jumped 218% year-over-year to $105.3 million. Total revenue for Cargo Aircraft Management ( CAM ), ATSG’s leasing arm, came to $71 million, 21% higher than 3Q18, while revenue from ACMI services also increased by 134% to $272.2 million. Compared to the third quarter of 2018, CAM had seventeen more aircraft in service at the end of this year’s third quarter. ATSG said that CAM leased three 767-300Fs to Amazon (24035, 25200, and 26912) during the third quarter. In the fourth quarter, CAM will place six more 767Fs, two to Amazon and four to UPS . The first aircraft for UPS in 4Q (28041) was redelivered by IAI in August , and has already been flying in Europe since Oct. 22. The second and third for the integrator are an ex-ANA 767-300BCF (25136) and another 767-300BDSF (28039), redelivered to CAM in September and currently still at Wilmington (ILN). According to ATSG, ten 767s were undergoing conversion or waiting to be placed with lessees on Sept. 30. Five 767-300s are expected to be in or awaiting conversion by the end of the year. With regard to ATSG’s ACMI segment, total block hours for the quarter were up 56% year-on-year, mainly because of increased flying for Amazon and the contribution from Omni Air. Revenue more than doubled, also due to higher operations for Amazon, ACMI flights for UPS, as well as Omni Air’s operations. Looking ahead, ATSG is expecting to make ten lease placements in 2020, including four to Amazon and one to UPS. Negotiations are under way with “multiple customers” for the lease of the remaining aircraft. Mid-2020 will also see STC approval for the freighter-converted A321PCF, a program which ATSG is developing as part of a joint venture with Precision Aircraft Solutions .

Diversification, robust demand for 767Fs elevate ATSG 3Q19 results

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Diversification, robust demand for 767Fs elevate ATSG 3Q19 results

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EgyptAir shelves plans for more freighters

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Related Posts

ATSG homes in on 767 conversions amid sluggish passenger market

Introducing the CF EMEA 2021 Gulf panel

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CARGO FACTS CONSULTING

Watch: CFC presents its 20-year freighter forecast

CFC: Revision to key assumption lifts large widebody freighter demand forecast

Follow Us