10-Q - Air Transport Services Group, Inc. (0000894081) (Filer)

Fri, Nov 8, 9:42 PM (70 days ago)

Air Transport Services Group, Inc. (ATSG) reported a decline in revenue for Q3 2024, totaling $471.3 million, down 10% from Q3 2023. Year-to-date revenue also decreased by 7% to $1.445 billion. The company experienced a net loss of $3.3 million for the quarter, contrasting with a profit of $17.2 million in the previous year, driven by decreased earnings from aircraft leases and operational challenges. Operating income fell to $21.7 million, down from $46.0 million, influenced by increased operating expenses, particularly in depreciation and interest. ATSG's cash flow from operations was robust at $399.1 million, although capital expenditures were significantly lower at $221 million compared to $581 million in 2023. Key customers include Amazon, the Department of Defense, and DHL, contributing to customer concentration risks. The company is navigating uncertainties related to a proposed merger with Stonepeak and potential impacts on operations and stockholder equity. ATSG expects to maintain liquidity through cash reserves and unused credit facilities, projecting capital expenditures of approximately $350 million for fleet expansion and modifications in 2024.