Air Transport Services Group recently released its second-quarter 2024 financial results, where it reported earnings of 19 cents per share, surpassing analysts’ expectations but marking a significant decline from the previous year. The company’s customer revenues came in at $488.4 million, missing estimates and reflecting a 7.7% drop compared to the previous year.
The company operates through segments like Cargo Aircraft Management (CAM) and ACMI Services. While revenues from ACMI Services saw a 7.7% decline year over year, CAM and other operations also experienced decreases in revenue.
Air Transport Services Group’s Fleet and Financial Performance
At the end of the second quarter of 2024, Air Transport’s total fleet consisted of 134 aircraft. The company’s total operating expenses decreased slightly to $457.1 million. Adjusted EBITDA fell by 17% year over year to $130.4 million, with operating cash flow and adjusted free cash flow also showing declines compared to the previous year.
Adjusted EBITDA Outlook for 2024
The company has revised its adjusted EBITDA outlook for 2024 to nearly $526 million. This adjustment comes as Air Transport anticipates more flying opportunities through new lease commitments and partnerships with Amazon. These developments are expected to positively impact the company’s financial performance moving forward.
Looking ahead, Air Transport Services Group foresees its third-quarter Adjusted EBITDA to be in line with the second quarter, with anticipated ramp-up costs. The company also plans to end 2024 with a fleet size of 139 aircraft.
Comparison with Other Transportation Companies
In a broader industry context, other transportation companies like Delta Air Lines, United Airlines, and J.B. Hunt Transport Services also reported their second-quarter 2024 earnings. While each company faced its own set of challenges and opportunities, the overall performance of the transportation sector has shown mixed results in the recent quarter.
