Air Transport Services Group, a provider of medium wide-body aircraft leasing, air cargo transportation and related services, reported consolidated financial results for Q3/15.

Results for Q3/15 compared with the third quarter of 2014, are as follows:

• Revenues increased 3% to $142.3 million, including a 6% increase in freighter aircraft leasing revenues. Excluding revenues from reimbursements, third-quarter 2015 revenues increased 6%.
• Both pre-tax and net earnings from continuing operations decreased 34%, reflecting the revenue and expense effects of aircraft transitioning between contracts and scheduled maintenance activities during Q3/15.
• Net earnings from continuing operations were $6.3 million, down from $9.6 million in the third quarter of 2014.
• Capital spending for the first nine months of 2015 was $111.0 million, compared with $90.9 million in the same 2014 period. ATSG purchased three 767-300 aircraft this year, one more than in 2014. ATSG plans to purchase one more 767-300 in November to modify and deploy with an existing customer in 2016 under an eight-year dry lease. ATSG projects capital expenditures for 2015 of approximately $165 million.

Joe Hete, president and CEO, said, “We advised you in August that the third quarter would be a transitional time for us, with intensive preparations to ready aircraft and services for new assignments in the fourth quarter. We deployed three Boeing 767 cargo aircraft under new arrangements during the third quarter, and will deploy eight others, five of those under dry lease arrangements, in the fourth quarter.”

Hete added, “We also signed commitments during the third quarter to invest in a new joint venture that will provide air express services in China and other points in Asia, starting in mid-2016 after pending regulatory approvals. That airline, United Star Express, will serve rapidly growing e-commerce markets from an operating base in Tianjin. We expect to be a source of leased aircraft to United Star Express as it expands over the next several years.”