FOURTH quarter 2023 revenue at Wilmington, Ohio-based Air Transport Services Group (ATSG) slumped due to reduced demand for aircraft leasing, passenger operations and flying for the US military.
The world's largest owner and operator of converted Boeing 767 freighter aircraft said that having fewer leased Boeing 767-200 freighters in service continued to affect its results, published on February 26, reports London's Air Cargo News.
Revenue for the fourth quarter was down 3 per cent, at US$517 million, while the pre-tax loss from continuing operations was $15.6 million, although this included a $24.4 million settlement for partial termination of a pension plan.
For the full year in 2023, revenues were up 1 per cent to $2.1 billion, while earnings per share from continuing operations $0.87, down $1.80 on the previous year. Pre-tax earnings from continuing operations were $84.2 million, including the pension settlement.
Chairman and chief executive, Joe Hete said that the lower results in the fourth quarter were expected, with reduced leasing demand and fewer leased Boeing 767-200 freighters in service.
But he added: 'Despite challenges in the second half of 2023, we converted and leased 13 aircraft, including our first three Airbus A321-200 freighters. We have substantially reduced our capital spending plans, and now expect to generate positive cash flow in 2024.'
He added: 'Our reduced spending outlook for 2024 greatly improves our cash generation expectations this year, even with lower expected earnings, leading to our goal of positive free cash flow for the year.
'Our growth investments have positioned us to deploy more freighters rapidly as market conditions improve. Our outlook for 2025 is for continued improvement in our cash flow based on an increase in [earnings] and an even lower capex spend.'
SeaNews Turkey
The world's largest owner and operator of converted Boeing 767 freighter aircraft said that having fewer leased Boeing 767-200 freighters in service continued to affect its results, published on February 26, reports London's Air Cargo News.
Revenue for the fourth quarter was down 3 per cent, at US$517 million, while the pre-tax loss from continuing operations was $15.6 million, although this included a $24.4 million settlement for partial termination of a pension plan.
For the full year in 2023, revenues were up 1 per cent to $2.1 billion, while earnings per share from continuing operations $0.87, down $1.80 on the previous year. Pre-tax earnings from continuing operations were $84.2 million, including the pension settlement.
Chairman and chief executive, Joe Hete said that the lower results in the fourth quarter were expected, with reduced leasing demand and fewer leased Boeing 767-200 freighters in service.
But he added: 'Despite challenges in the second half of 2023, we converted and leased 13 aircraft, including our first three Airbus A321-200 freighters. We have substantially reduced our capital spending plans, and now expect to generate positive cash flow in 2024.'
He added: 'Our reduced spending outlook for 2024 greatly improves our cash generation expectations this year, even with lower expected earnings, leading to our goal of positive free cash flow for the year.
'Our growth investments have positioned us to deploy more freighters rapidly as market conditions improve. Our outlook for 2025 is for continued improvement in our cash flow based on an increase in [earnings] and an even lower capex spend.'
SeaNews Turkey
