ATSG posts $53.7m loss in Q2 2017

The Wilmington, Ohio-based aircraft leasing and air cargo transportation services provider’s loss resulted from charges for the warrants granted last year in connection with operating and lease agreements with Amazon Fulfillment Services.    Air Transport Services Group, Inc. (ATSG) recorded a net loss of $53.7 million for the second quarter of 2017, compared to a net profit of $11.6 million for the second quarter of 2016, according to the company’s latest financial statements.
   The Wilmington, Ohio-based aircraft leasing and air cargo transportation services provider’s loss from continuing operations totaled $53.9 million for the quarter, and included charges totaling $67.8 million for the warrants granted last year in connection with operating and lease agreements with Amazon Fulfillment Services, Inc.
   “The value of the warrants increased sharply during the quarter in conjunction with a 36 percent increase in the traded price of ATSG stock since March 31, 2017, resulting in a significant mark-to-market loss for the quarter,” the company said.
   ATSG agreed back in March 2016 to provide and operate 20 Boeing 767 freighters for Amazon Fulfillment Services.
   Meanwhile, ATSG’s revenues for the quarter rose 43 percent year-over-year to $253.2 million. For the first half of 2017, ATSG’s capital expenditures totaled $144.3 million, compared to $125.1 million for the corresponding 2016 period.
   ATSG was scheduled to deliver its 20th leased Boeing 767 freighter to Amazon this week, according to ATSG President and CEO Joe Hete.
   “Our total leased-aircraft portfolio has grown by eight 767s as of June 30, compared to the same date a year ago,” Hete said. “Excluding the two 767-300s required to complete Amazon’s twenty-aircraft order, our current purchase and conversion commitments will yield twelve additional 767-300s extending through the first half of next year. We currently have signed leases or are finalizing others for nine of the twelve aircraft. The remaining three aircraft are under discussion with multiple parties.”