Air Transport Services Group (ATSG) recorded revenue of $501 million, up 3%, for the first quarter of 2023 (Q1 2023).
Earnings per share were down $0.39 to 28 cents, with pre-tax earnings of $27 million, versus $65 million, and adjusted pre-tax earnings of $38 million, down from $64 million. Adjusted EBITDA came to $138 million, down $20 million.
Aircraft leasing and related revenues were up 8% year-on-year, ATSG reported, saying the result was "primarily reflecting the benefit of eight newly converted Boeing 767-300 freighters leased since the beginning of the first quarter of 2022".
The rise was "offset by lower revenues from engine pooling arrangements for customers leasing 767-200 freighters", the company added.
The sector's pre-tax earnings decreased 2% to $34 million due to $2.3 million more interest expense increase.
During the period ATSG "deployed two 767-300 freighters to an external customer", with one 7767-200 freighter returned upon lease expiration.
By the end of March the company had 92 aircraft out on lease, six more than at the end of Q1 2022, with 18 more freighters in line for deployment in 2022 and 27 aircraft either being converted to freighters or awaiting conversion.
The carrier's ACMI operations felt a loss $2 million, a drop of more than $20 million y/y, with "nearly all the decrease compared to the prior year is attributable to our ACMI and charter airline, Omni Air", according to ATSG.
ATSG said it expects its adjusted earnings (EBITDA) for 2023 "to be in a range of $610 million to $620 million", meaning "full year adjusted EPS (earnings per share) in a range of $1.55 to $1.70".