Air Transport Services Group’s (ATSG) revenues increased year-on-year (YOY) by 36 per cent in the third quarter (Q3) ending 30 September to $193.3 million.
The lessor says excluding revenues from reimbursements, revenues increased 25 per cent, or $34.3 million and all of ATSG’s principal businesses recorded significant growth for the quarter.
ATSG president and chief executive officer, Joe Here: “Our rapid growth remains strong across all of our businesses as our leased freighter fleet and logistics and maintenance operations continued to expand in the third quarter.
“In our airlines, costs associated with expansion of our operations continue to affect the profitability of those businesses. In particular, our third quarter results were adversely impacted by premium pay to ABX Air pilots, despite an aggressive crewmember recruiting program and rigorous training schedule.
“We estimate that this additional compensation, along with ongoing training, negatively impacted our pre-tax results by approximately $6.5 million for the third quarter.”
Through nine months of 2016, ATSG’s net earnings were $21.8 million, compared with $25.8 million in the same period last year. Adjusted net earnings were $25.6 million, compared with $25.8 million last year.
Revenues through nine months increased 25 per cent to $547.2 million, and were up 19 per cent excluding revenues from reimbursements. Adjusted EBITDA for the first nine months of 2016 was $155.4 million, up 11 per cent.