Air Transport Services Group (ATSG) have announced its earnings before interest, tax, depreciation and amortization (EBITDA) from continuing operations is set to be around $7 million lower than indicated in its fourth quarter (Q4) and full year 2016 forecast.
ATSG says this reduction in guidance is due to the revenue loss resulting from a brief work stoppage in mid-November 2016 by pilots of its subsidiary ABX Air.
ATSG president and chief executive officer, Joe Hete says: “Overall, we achieved significant gains across our businesses in 2016, including strong revenue growth and cash flow from additional Boeing 767 Freighter deployments to external lease customers as well as other support services.”
ATSG says it now expects 2016 adjusted EBITDA from continuing operations for the fourth quarter and full year 2016 to be approximately $56 million and $211 million, respectively.
Hete says: “Overall, we achieved significant gains across our businesses in 2016, including strong revenue growth and cash flow from additional 767 freighter deployments to external lease customers as well as other support services.
“The decision of the Teamster-represented pilots at ABX Air to resort to a work stoppage stemmed from a dispute over scheduling assignments and interrupted ABX Air’s operations for a short time prior to being enjoined by the US District Court.”
Hete adds ATSG will report its full Q4 and year-end 2016 financial results and hold its earnings conference call in early March 2017. At that time, ATSG will also provide its outlook for 2017, which it says will benefit from the significant growth in ATSG’s externally leased fleet of 767F aircraft during 2016, as well as those additions planned during 2017.