Air Transport Services Group Expects 2024 Adjusted EBITDA Of ~$506M
Portfolio Pulse from Benzinga Newsdesk
Air Transport Services Group (ATSG) projects a decrease in its 2024 Adjusted EBITDA to approximately $506 million, a $56 million drop from 2023. This forecast excludes potential additional earnings from new aircraft leases or flying opportunities. The company anticipates a $410 million capital expenditure in 2024, significantly lower than in 2023. The decline in earnings is attributed to fewer 767-200 freighter leases, lower engine utilization, and changes in their 767-300 freighter fleet.
February 27, 2024 | 7:02 am
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ATSG expects a decrease in 2024 Adjusted EBITDA to $506M, down from 2023, with significant reductions in capital spending.
The projected decrease in Adjusted EBITDA for ATSG is a negative signal for investors, indicating a potential decline in profitability. The reduction in capital spending, while potentially positive for cash flow, suggests a scaling back of expansion or renewal activities, which could impact long-term growth prospects. The specific mention of challenges related to their 767-200 and 767-300 freighter fleets highlights operational issues that are directly impacting earnings.
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