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Jun 30, 2024
ATSG Q2 2024 Earnings Report
ATSG's second quarter results were affected by fewer block hours and scheduled return of Boeing 767-200 freighters, but the company beat internal expectations and is positioned for further improvement in the second half of the year.
Key Takeaways
ATSG's second quarter results were affected by fewer block hours and scheduled return of Boeing 767-200 freighters. However, the company beat internal expectations for the quarter and is positioned for further improvement in the second half of the year. They have raised their full year guidance for Adjusted EBITDA and leased four aircraft to customers since the end of June.
Second quarter results were affected by fewer block hours and the scheduled return of Boeing 767-200 freighters.
The company beat internal expectations for the quarter and is positioned for further improvement in the second half of the year.
ATSG raised its full year guidance for Adjusted EBITDA.
Four aircraft have been leased to customers since the end of June.
Forward Guidance
ATSG expects Adjusted EBITDA of approximately $526 million in 2024. ATSG expects third quarter Adjusted EBITDA to be similar to the second quarter as ramp-up costs for adding ten Amazon supplied 767 freighters continue, but higher in the fourth quarter when the last few enter service and other peak-season operations occur.
Positive Outlook
- Adjusted EBITDA is expected to be approximately $526 million in 2024.
- The company continues to see the potential for additional Adjusted EBITDA from new lease commitments for available aircraft and opportunities for additional flying.
- Capital spending for 2024 is expected to be $390 million.
- Contracted pricing increases and seasonal charter opportunities in the fourth quarter should drive improved sequential results in our ACMI Services segment.
- Momentum in core leasing business positions the company well to drive earnings growth in 2025.
Challenges Ahead
- Third quarter Adjusted EBITDA is expected to be similar to the second quarter as ramp-up costs for adding ten Amazon supplied 767 freighters continue.
- Forecast excludes any contribution from additional aircraft leases not currently under contractual commitment.
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