Air Transport Services Group sales up 71pc - 737 crashes bring added work
OHIO's Air Transport Services Group (ATSG) first quarter operations profit increased 26 per cent year on year to US$26 million, drawn on revenues of $348
OHIO's Air Transport Services Group (ATSG) first quarter operations profit increased 26 per cent year on year to US$26 million, drawn on revenues of $348.2 million, up 71 per cent.
The crashes and grounding of Boeing's 737-MAX earlier this year resulted in requests for additional lift from multiple carriers, said ATSG president and CEO Joe Hete.
'How long that will go on we don't know, but we expect as we transition into the later part of the year the demand will still be there,' he said.
Freighter aircraft deployments and additional business handled for the US Department of Defence helped raise first quarter earnings and revenue by double digits for the NASDAQ-listed cargo aircraft leasing company.
The revenue gain was primarily attributed to $135.8 million contributed by the company's $845 million purchase of Omni Air in October 2018, which then accounted for 49 per cent of its long-range passenger business.
'Amazon and DHL added years of contracted revenue streams from aircraft leasing and from operations by our airlines and related service businesses,' Mr Hete said.