ATSG expects 44% earnings growth for 2019, e-commerce outlook 'remains very bright'

Air Transport Services Group (ATSG) forecast (05-Aug-2019) a 44.2% year-on-year increase in adjusted EBITDA to USD450 million for the full year 2019. The majority of growth from aircraft leasing activities is expected to occur during 2H2019 and operations for commercial customers are also expected to increase. Adjusted EBITDA is forecast to increase 36% in 2H2019, based on increased flight operations and a greater number of leased aircraft in service. Ramp up costs related to expanded schedules for 2H2019 will affect results in 3Q2019 and ATSG also expects aircraft lease transitioning costs to increase in 3Q2019. Capital expenditures are projected to be approximately USD475 million for 2019, principally to purchase and modify Boeing 767 aircraft for freighter deployments. The plan includes the purchase of six 767s in 2H2019. ATSG expects to deploy at least 10 additional aircraft in 2020, including four under customer commitments to Amazon and one to be leased to UPS. President and CEO Joe Hete commented: "Compared with air carriers with more payload-sensitive business models, the outlook for the e-commerce-driven regional air networks that drive our cash flow, remains very bright". [more - original PR]