WILMINGTON — Air Transport Services Group, Inc. reported Monday consolidated financial results for the quarter and year ended Dec. 31, 2019.
ATSG reported in a news release that fourth quarter 2019 results, as compared with the fourth quarter of 2018, include:
• Customer revenues up 44 percent to $403.4 million, and up 63 percent to $1.45 billion for the year.
• Both of ATSG’s principal business segments, aircraft leasing and air transport, reported higher revenues for the fourth quarter and year.
• Contributions from Omni Air, and from the increase in externally leased 767 freighters, drove the majority of the increase in Adjusted EBITDA.
• Capital spending for 2019 was $453.5 million, up $160.6 million, or 55 percent.
• Capital expenditures included $328.0 million for the purchase of 11 Boeing 767 aircraft, including two in the fourth quarter, and for freighter modification costs.
Joe Hete, Chief Executive Officer of ATSG, said, “2019 was very productive and profitable for ATSG and its family of companies, excluding warrant effects. We successfully integrated Omni Air, our November 2018 acquisition, and expanded its passenger fleet, leading to better than expected returns from that investment. Demand for our cargo aircraft and flight operations was strong, due in large part to more aircraft and more flight operations for Amazon.
“We are optimistic that 2020 will be just as good, and project a strong increase in Adjusted EBITDA as we expect to deploy 8-10 more 767 converted freighters for customers.”
In 2019, ATSG completed several significant milestones, including:
• Revenues of $1.45 billion, excluding reimbursable amounts, were the highest in ATSG’s history. The total included more than $500 million in revenues and a greater than expected contribution from Omni Air, which ATSG acquired in 2018.
• Boeing 767-300 deployments included eight more 767 freighters, including six to Amazon, plus one passenger 767 to Omni Air.
• Leased two 767-300s to United Parcel Service, ATSG’s newest 767 freighter lease customer. Three more will be delivered in 2020, the first of which was delivered in January.