ATSG issues outlook for stronger 2015 results

Air Transport Services Group, Inc. (NASDAQ:ATSG) said that due primarily to better-than-expected results from its airline operations in the fourth quarter, its financial results for 2015 are likely to exceed management’s earlier guidance. ATSG now projects that its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) from continuing operations, adjusted for unrealized effects of interest rate derivative gains and losses, will likely be in a range of US$196-200m for 2015. That compares with Adjusted EBITDA guidance first provided last November of US$190-195m for 2015. Adjusted EBITDA from Continuing Operations for 2014 was US$179.5m. The change in ATSG’s 2015 outlook reflects increased demand for ATSG’s services, primarily for the 767 freighters it operates on a contracted ACMI (Aircraft, Crew, Maintenance & Insurance) basis. Results from the ACMI Services segment were greater than projected in the fourth quarter. The fourth quarter also benefited from more 767 freighters that were dry-leased to external customers at year-end: three more compared with the start of the quarter, and six more than at the end of 2014.