The aircraft lessor and air cargo transportation provider reported net earnings of $10 million on revenues of $237.9 million for the first quarter of 2017.
Air Transport Services Group, Inc. (ATSG), a provider of aircraft leasing and air cargo transportation services, reported net earnings of $10 million on revenues of $237.9 million for the first quarter of 2017, up 21.5 percent and 34.1 percent year-over-year, respectively.
ATSG’s Cargo Aircraft Management (CAM) segment posted revenues of $48 million, slipping 7.2 million from the first quarter of 2016, primarily due to $2.6 million in non-cash amortization associated with the Amazon (warrant) lease incentive valuation, the company said. As of March 31, the CAM segment owned 61 Boeing cargo aircraft, 60 of which were in service, including 53 767s.
ATSG’s ACMI Services segment recorded revenues of $144.9 million for the quarter, a 26.1 percent year-over-year increase.
Meanwhile, “other activities” at the company generated $89.2 million in revenues, a 62.2 percent increase from the first quarter of 2016.
“Forty-three of our Boeing 767s were dry leased to external customers at the end of the first quarter, compared with 29 a year earlier. Our leasing business revenues from external customers increased 7 percent for the quarter, and we expect accelerating growth in that segment as the year progresses,” ATSG President and CEO Joe Hete said of the results. “That trend, plus improved profitability in our airline operations and good returns from our aircraft maintenance and logistics businesses, position us to deliver continued strong earnings and cash flow in the months ahead.”
Looking ahead, ATSG projects 2017 capital expenditures of approximately $355 million, mostly for fleet expansion, including modification of 11 767-300 aircraft.
Headquartered in Wilmington, Ohio, ATSG has various subsidiaries, including ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Airborne Maintenance and Engineering Services, Inc., which includes PEMCO World Air Services, Inc.
ATSG’s net earnings, revenues soar in Q1
