Air Transport Services Group (ATSG), a leading provider of medium wide-body aircraft leasing, air cargo transportation and related services, says it expects to deliver ten B767-300 freighters to customers this year, one more than last year as customer demand for additional B767s remains strong.
The group reported revenues in the 1Q 2018 up 11 per cent to USD 203 million year-on-year, with an adjusted EBITDA of USD 71.9 million, up 26 per cent from a year earlier.
“We are off to a very strong start and optimistic about our growth in revenues and cash flows for the rest of 2018,” Joe Hete, president and CEO of ATSG said. “We continue to project delivery of ten 767-300 freighters to customers this year, one more than last year. Customer demand for additional 767s remains strong.
“We have customer commitments for seven of the 10 newly converted 767s this year, all of which will be straight dry leases. An agreement for an eighth dry lease is being finalised, and we have strong interest from customers for the remaining two.”
ATSG continues to expect that its Adjusted EBITDA from Continuing Operations for 2018 will be approximately USD 310 million, up 16 per cent from 2017, after taking into account the ratification of the amended pilot collective bargaining agreement in late March.
ATSG also said it continues to project 2018 capital expenditures of about USD 300 million, the majority of which is for purchases of B767 aircraft and related freighter modification costs for customer deployments in 2018/2019.
“Our 2018 capital expenditures also include investment in the design and certification of a new narrow body variant of the Next Gen Boeing 737-700,” Hete said.
“Additionally, we will continue to contribute, via a joint venture, in the development of a freighter modification supplemental type certificate (STC) for the Airbus 321-200 which will continue to be reflected as a non-operating charge to our income statement during 2018. We expect FAA approval of the STC by the end of 2019.”
ATSG’s Cargo Aircraft Management (CAM) division was leasing fifty-two cargo aircraft to external customers as of 31 March 2018, one more than at the end of 2017 and nine more than a year earlier. Of the externally leased freighters, one was a B737 and the rest were B767s.