ATSG second quarter profits decline, delivers 767-300 freighter to Euroavia Airlines

Air Transport Services Group (ATSG) reported a slip in revenues and profit for the second quarter of the year on August 8, 2024. In addition, the company delivered a 767-300 converted freighter aircraft to SLG Worldwide, who will sublease it to cargo airline Euroavia Airlines. The company's net earnings fell from $38 million in second quarter 2023 down to $7.4 million in this year's comparable quarter. Revenues slipped to $488.4 million, down from $529.3 million last year. The company's expenses totalled $457.1 million, down marginally from $459.6 million a year prior. It recorded an operating income of $31.3 million, halved from 2023's second quarter operating income of $69.7 million. ""Our second quarter results were affected by fewer block hours by our airlines and the scheduled return of Boeing 767-200 freighters since a year ago,"" said ATSG CEO Mike Berger. ""We beat our internal expectations for the quarter, however, and are positioned for further improvement in the second half of the year, particularly in the fourth quarter."" Adjusted EBITDA was $130.4 million, versus $157.1 million from last year. It generated a free cash flow of $91.8 million, swinging from last year's negative $1.3 million. Berger commented: ""We're encouraged by the free cash flow we're generating and have again raised our full year guidance for adjusted EBITDA."" ATSG expects an adjusted EBITDA of $526 million for the full year, up $10 million from its previous guidance in May, taking into account the four aircraft leases that commenced at the end of June. The company also lowered its capital spending for the year from $410 million down to $390 million. ""We expect contracted pricing increases and seasonal charter opportunities in the fourth quarter, which should drive improved sequential results in our ACMI Services segment,"" Berger continued. ""This expected improvement, combined with momentum in our core leasing business, positions us well to drive earnings growth in 2025."" As of June 30, 2024, its total assets were valued at $3.9bn. Its total liabilities and stockholders' equity at the end of the quarter was $3.9bn. It held $28.7 million in cash and cash equivalents at the end of the period.