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ATSG reports on first-quarter upturn and positive Amazon effect
OHIO's Air Transport Services Group's (ATSG), the air freighter leasing company, declared that its first quarter operating profit fell 16.5 per cent year on year to US$12.1 million, drawn on revenues of $177.4 million, up by 21 per cent.
The revenue boost, as opposed to margins, was due to five more dry leases of B767 freighters and expanded air network operations on behalf of ATSG's newest customer, Amazon.
"Margins were affected in part by revenue/expense timing factors, including those associated with scheduled maintenance services, fleet transition and costs to spool up resources to serve Amazon," said Joe Hete, president and CEO.
"We project margins to improve in the second half as we complete more dry leases and deploy additional freighters into the Amazon network," he said.
Over the three months up to March 31, ATSG made turnover of $177.4 million, up by 21 per cent on the same period of 2015, thanks in the main to five more dry leases of B767 freighters and expanded air network operations on behalf of ATSG's newest customer, Amazon.
"Under its key multi-year agreements with global leaders DHL and Amazon, and with an increasing number of our freighters deployed under long-term dry leases, ATSG is on a sustainable, diversified growth trajectory," Mr Hete said.
The future looks bright. ATSG extended its key commercial deals with DHL for four years from April 2015, and agreed the landmark deal with Amazon in March this year, reports London's Air Cargo News.
Both these contracts cover aircraft leases and the provision of air network services on the part of ATSG businesses. The deal with Amazon also gives the e-tailer warrants over a five-year period to acquire up to 19.9 per cent of ATSG's common shares.
The revenue boost, as opposed to margins, was due to five more dry leases of B767 freighters and expanded air network operations on behalf of ATSG's newest customer, Amazon.
"Margins were affected in part by revenue/expense timing factors, including those associated with scheduled maintenance services, fleet transition and costs to spool up resources to serve Amazon," said Joe Hete, president and CEO.
"We project margins to improve in the second half as we complete more dry leases and deploy additional freighters into the Amazon network," he said.
Over the three months up to March 31, ATSG made turnover of $177.4 million, up by 21 per cent on the same period of 2015, thanks in the main to five more dry leases of B767 freighters and expanded air network operations on behalf of ATSG's newest customer, Amazon.
"Under its key multi-year agreements with global leaders DHL and Amazon, and with an increasing number of our freighters deployed under long-term dry leases, ATSG is on a sustainable, diversified growth trajectory," Mr Hete said.
The future looks bright. ATSG extended its key commercial deals with DHL for four years from April 2015, and agreed the landmark deal with Amazon in March this year, reports London's Air Cargo News.
Both these contracts cover aircraft leases and the provision of air network services on the part of ATSG businesses. The deal with Amazon also gives the e-tailer warrants over a five-year period to acquire up to 19.9 per cent of ATSG's common shares.
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