Air Transport Services Group’s (ATSG) revenues increased $60.8 million on the third quarter (Q3) of last year, or 31 per cent, to $254.1 million for Q3 ending on 30 September.
Excluding revenues from reimbursable airline expenses, revenues increased $49 million, or 29 per cent. ATSG’s dry leasing, and maintenance and logistics businesses recorded double-digit revenue increases before eliminations.
Q3 earnings included non-cash after-tax charges totaling $43.1 million for revaluation of the warrants granted to Amazon Fulfillment Services in connection with operating and lease agreements, which began in April 2016, the amortization of lease incentives related to those Amazon warrants, a non-cash pension settlement charge, and other items.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 27 per cent to $65.9 million versus a year ago, and increased $1.8 million from the second quarter of 2017.
Capital expenditures through the first nine months of 2017 were $218.8 million versus $182.1 million in the same period of 2016. ATSG’s operating Boeing 767 Freighter fleet has increased by six, to 58, during the first nine months of 2017.
ATSG president and chief executive officer, Joe Hete says: “As we indicated in August, our adjusted results for the third quarter were very similar to those in the second quarter, and were up significantly from the third quarter a year ago.
“They reflect growth in our operating fleet and strong double-digit growth in associated lease revenues. We expect to deploy five more freighters to lease customers by year-end, and increase operating utilisation for our CMI and ACMI fleets during a good peak season.”
ATSG’s subsidiaries include ABX Air; Airborne Global Solutions; Air Transport International; Cargo Aircraft Management; and Airborne Maintenance and Engineering Services, including its division, PEMCO World Air Services.