ATSG sees impact of fewer freighter leases
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- Saturday, 02 March 2024
Lower demand for leased freighter aircraft has contributed to a 12 per cent reduction in adjusted 2023 core operating profit at the USA's Air Transport Services Group (ATSG).
There was a 20 per cent decline in the fourth quarter alone, leading to a decision to cut investment in new equipment.
The cargo-orientated aviation company said adjusted earnings are expected to fall an additional 10 per cent this year, from US$562 million to US$506 million, with capital spending lowered to US$410 million.
The biggest impact on financial returns was the acceleration in lease returns of Boeing 767-200 freighters by one customer, Amazon, which reduced adjusted earnings, excluding taxes, loans and capital expenses in the leasing subsidiary by US$33 million last year.
ATSG removed 10 of the cargo jets from service and sold five of them, as well as three 767-300s.
Another seven Amazon 767-200 returns and lower engine utilisation will drive down 2024 earnings to US$506 million, ATSG says.
