Air Transport (ATSG) Q1 Earnings & Revenues Beat Estimates

Core Insights - Air Transport Services Group (ATSG) reported first-quarter 2024 earnings of 16 cents per share, exceeding the Zacks Consensus Estimate of 13 cents but down 55.6% year over year [1] - Customer revenues reached $485.5 million, slightly above the Zacks Consensus Estimate of $484.2 million, but fell 3.1% year over year [1] - ATSG's adjusted EBITDA outlook for 2024 has improved to nearly $516 million, up from the previous estimate of $506 million, driven by anticipated flying opportunities from 10 Amazon-provided 767-300s [3] Financial Performance - ATSG's revenues from ACMI Services decreased 3.1% year over year to $323.8 million, while revenues from CAM and other operations declined 5.8% and 1.9% to $105.5 million and $109 million, respectively [1] - Adjusted EBITDA fell 7.7% year over year to $127.3 million, and operating cash flow decreased to $126.4 million from $216.4 million a year ago [2] - Adjusted free cash flow was reported at $96 million, down from $162.1 million in the prior year [2] Fleet and Operations - ATSG's total fleet in service included 133 aircraft (19 passengers and 114 freighters) at the end of Q1 2024, compared to 129 a year ago [1] - Total operating expenses decreased marginally to $452.5 million [1] Market Position - ATSG's adjusted earnings per share for 2024 is still expected to be in the range of 55-80 cents, with the midpoint below the Zacks Consensus Estimate of 73 cents [3] - Capital spending is projected to be $410 million [3] - ATSG currently holds a Zacks Rank 4 (Sell) [3] Industry Comparisons - Delta Air Lines reported first-quarter 2024 earnings of 45 cents per share, significantly beating the Zacks Consensus Estimate of 36 cents, with an 80% year-over-year increase [4] - Delta's revenues of $13.75 billion surpassed estimates and increased 7.75% year over year, driven by strong air travel demand [4] - CSX Corporation's first-quarter 2024 earnings per share of 46 cents beat estimates but declined 4% year over year, with total revenues of $3.68 billion, slightly above estimates but down 1% year over year [4][5]