Air Transport Services reports Q3 adjusted EPS 13c, consensus 17c

Reports Q3 revenue $471.25M, consensus $507.46M. Mike Berger, chief executive officer of ATSG, said, “First off, we are excited about our future with Stonepeak. Our leasing business continued to benefit from strong demand for our freighter aircraft, as we added four Boeing 767-300 freighter leases during the third quarter. Our third quarter results were affected by fewer block hours flown than a year ago and higher expenses, including start-up costs to fly ten more aircraft provided by Amazon. I am delighted to report that the 10th aircraft entered operations this week. For the quarter, we once again generated strong free cash flow, bringing the total to $193 million for the year. Going forward, certain contractual price increases effective in the fourth quarter position us for strong improvement in our ACMI Services segment and we expect to execute three new leases for CAM-owned freighters by year-end 2024.”