Medium wide-body freighter aircraft leasing specialist Air Transport Services Group (ATSG) reported improved financial results for the quarter ended 31 March. Revenues for the Wilmington, Ohio-based company were $147.0 million, up 2 per cent or, excluding revenues from reimbursed expenses, 4 per cent.
Pre-tax earnings from continuing operations increased 40 per cent to $14.5 million as results from ATSG's airline businesses again improved sharply compared with the prior-year period. Net earnings from continuing operations increased 36 per cent to $8.9 million. Operating loss carry forwards for tax purposes offset much of the company’s federal tax liabilities and ATSG does not expect to pay significant federal income taxes until 2017 at the earliest. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) increased 20 per cent to $46.5 million.
President and chief executive, Joe Hete, said: “ATSG has begun 2015 with more of the strong momentum we developed in the fourth quarter, with continued improvement from our airline operations and renewed growth in aircraft leasing, backed by long-term relationships with our principal customers. Twenty-eight of our 46 Boeing 767 freighters are in service today under dry lease agreements with external customers. Nearly all of the rest are operating for longtime customers under ACMI agreements.”
ATSG signed a new four-year commercial agreement for air network services to DHL on 1 April, along with new or extended dry leases for 15 Boeing 767 for DHL’s US network to March 2019.