15 Freighter Leases Drive Operating Cash Flow Growth of 14%, Strong 2022 Outlook
US lessor Air Transport Services Group (ATSG) has reported full-year 2021 revenues of $1.73bn, up 10% year on year.
Adjusted EBITDA was $541.1m, up 9%, and adjusted pretax earnings were $173.9m, up 11%
Rich Corrado, president, and chief executive officer of ATSG, said, “Our 2021 results demonstrate the powerful combination of having the right solutions for our customers, the right strategy for deploying our in-demand assets, and the right people to operate and support them.
These results flow from investing to extend our lead as the largest lessor of freighter aircraft, and from delivering best-in-class air express service for the e-commerce customers who demand it.
I am extremely proud of our people as they lay the foundation for even more exceptional results over the next several years. As we look to the immediate future in 2022, we expect even higher achievements, with our outlook for almost $100 million in additional Adjusted EBITDA over our record 2021 results.”
2022 Outlook
ATSG expects its adjusted EBITDA for 2022 to be $640m, or nearly $100m more than its 2021 results.
It also projects 2022 capital spending of $590m, including $200m in sustaining capex and $390m for growth.
The forecast assumes leases of nine 767-300 and two A321-200 freighters; and contributions from seven 767 freighter aircraft to be added to customer CMI contracts during 2022, including five to be provided by customers.
It also assumes continued moderation of pandemic effects on demand for ATSG’s passenger and Boeing 757 combi operations, as both revenues and margins for these flight operations continue to recover.
2022 results for passenger operations are expected to approximate pre-pandemic 2019 levels, reflecting more normalized support for both military and commercial passenger customers.
“The strong operating momentum in ATSG’s freighter leasing and airline businesses, together with the change in engine maintenance services for ATSG’s 767-200s, will drive substantial increases in 2022 adjusted earnings as well as Adjusted EBITDA,” said ATSG.
Corrado concluded, “We have customer commitments to lease all nine of the Boeing 767s we will deploy in 2022 and the majority of those we expect to lease in 2023. In addition, we already hold lease deposits for more than half of the A330 aircraft we intend to begin deploying in 2024,” he said. “We have also purchased or hold options to acquire more than half of the feedstock aircraft we will need to meet those commitments. I am very bullish that the strong demand and operating excellence of ATSG will persist and generate even stronger returns in the years to come.”
