Air Transport Services Group, Inc. has recently released its 10-Q report, providing insights into its financial condition and results of operations. The company, headquartered in Wilmington, Ohio, operates in two segments: Cargo Aircraft Management Inc. (CAM) and ACMI Services. It offers aircraft leasing, air cargo transportation, and related services, with a fleet that includes 107 owned Boeing aircraft, three Airbus aircraft, and 20 leased aircraft as of December 31, 2023.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, the company reported a net loss of $3.3 million for the three-month period ended September 30, 2024, compared to a net income of $17.2 million for the same period in 2023. For the nine-month period ended September 30, 2024, the company reported a net income of $12.7 million, down from $75.3 million in the previous year. The decrease in revenue was attributed to lower revenues from contracted passenger flight operations, flight operations for customers’ delivery networks, and Boeing 767-200 aircraft leases.
The company’s largest customers are ASI, a subsidiary of Amazon, the Department of Defense (DoD), and DHL. Revenues from commercial arrangements with ASI comprised approximately 33% and 34% of the company’s consolidated revenues during the nine-month periods ended September 30, 2024 and 2023, respectively. DHL comprised 14% and 13% of consolidated revenues, while the DoD accounted for 29% and 31% during the same periods.
Notably, Air Transport Services Group, Inc. entered into an Agreement and Plan of Merger on November 3, 2024, with Parent and MergerCo. The merger is anticipated to occur in the first half of 2025, subject to customary closing conditions and stockholder approval. If the merger is consummated, the company’s securities will be delisted from the Nasdaq Stock Market LLC, and it will become a privately held company.
The company also provided a summary of its aircraft fleet as of September 30, 2024, and December 31, 2023. The fleet included 110 Boeing aircraft and three Airbus aircraft in revenue service, with additional aircraft undergoing or awaiting induction into the freighter conversion process. Air Transport Services Group, Inc. also leased six passenger aircraft from third parties and operated 24 freighter aircraft provided by customers under CMI agreements.
The market has reacted to these announcements by moving the company's shares -0.1% to a price of $22.01. For more information, read the company's full 10-Q submission here.
