Air Transport Services Group, Inc. (ATSG) reported a decline in revenue and profitability for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, ATSG generated revenues of $471.3 million, down from $523.1 million in the prior year. For the nine months, revenues decreased to $1.45 billion from $1.55 billion. The decline in revenue was attributed to lower earnings from airline operations and reduced customer activity, particularly in the ACMI Services segment, which saw a revenue drop of $43.2 million for the quarter.
Operating expenses also decreased, totaling $449.6 million for Q3 2024 compared to $477.1 million in Q3 2023. However, operating income fell significantly, with a reported income of $21.7 million for Q3 2024, down from $46.0 million in the same quarter of the previous year. The company experienced a net loss of $3.3 million for Q3 2024, contrasting with a net income of $17.2 million in Q3 2023. For the nine-month period, net earnings were $12.7 million, a sharp decline from $75.3 million in 2023.
ATSG's total assets increased slightly to $3.88 billion as of September 30, 2024, from $3.88 billion at the end of 2023. Notably, stockholders' equity rose to $1.47 billion, up from $1.37 billion, driven by an increase in additional paid-in capital and retained earnings. Long-term debt decreased to $1.56 billion from $1.71 billion, reflecting the company's efforts to manage its financial obligations.
Strategically, ATSG has been active in expanding its fleet and service agreements. As of September 30, 2024, the company leased 30 Boeing 767 freighter aircraft to Amazon, with lease expirations between 2026 and 2031. Additionally, ATSG entered into a merger agreement with Stonepeak Nile Parent LLC, which, if completed, will take the company private at a cash conversion of $22.50 per share. This agreement is subject to stockholder approval and regulatory conditions.
The company also reported a significant increase in deferred revenue, which rose to $20.2 million from $4.5 million at the end of 2023, indicating future revenue recognition from existing contracts. ATSG's capital expenditures for the first nine months of 2024 were $221 million, a decrease from $581 million in the same period of 2023, reflecting a strategic shift in investment priorities.
About Air Transport Services Group, Inc.
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