ATSG announced a drop in profit and revenue for the second quarter
In early August, air freight prices increased and cargo volumes increased. ATSG announced a drop in profit and revenue for the second quarter.
Starting with the upward trend, WorldACD's Week 31 data showed strong demand, driven by e-commerce and ongoing supply chain disruptions, resulting in a 12% year-over-year increase in freight rates and shipments.
Digging deeper, Africa's export rate declined by 5% year on year, but the index noted that "export rates remained stable or increased slightly in other major global origin regions," with the Middle East/South Asia and Asia Pacific increasing by 56% and 22%, respectively.
In weeks 30 and 31, with zero increases compared to the previous two weeks, the index showed a 1% decline in freight rates and volumes - although still up 9% and 12% respectively compared to 2023.
In addition, WorldACD noted that despite ongoing domestic logistical and political turmoil, including the ouster of the prime minister, "Bangladesh's air cargo volumes rebounded in Week 31."
"After a significant decline in the first two weeks (28th and 29th), cargo volumes from Bangladesh to Europe recovered in the 31st week to the levels of the 25th to 28th week," the company added. Freight volumes in recent weeks have remained well below year-ago levels.
"Spot freight rates from Bangladesh to Europe increased further in Week 31, reaching the highest level of the year at $4.87 / kg, which is already the highest level for all of 2024, as disruptions to air services and customs in Bangladesh added to the already tight market capacity."
In terms of individual operators, freighter lessor and operator ATSG had a disappointing second quarter, with a 7.7% drop in revenue (to $488.4 million) for the three-month period, resulting in a 80.5% plunge in net profit to $7.4 million.
The downward trend was reflected in its half-year figures, where revenue fell 5.5 per cent to $974m from just over $1bn in the same period last year, while net profit fell 72 per cent to $16m.
CEO Mike Berger said, "Our second quarter results were impacted by lower airline flight hours and the scheduled return of the Boeing 767-200 freighter a year ago.
"However, we exceeded our internal expectations for the quarter and are on track for further improvement in the second half, especially the fourth quarter." We are encouraged by the free cash generated and have again raised our full-year adjusted Ebitda guidance."
A surge in demand since the end of June seems to support his optimistic view, with ATSG having leased four aircraft.
Starting with the upward trend, WorldACD's Week 31 data showed strong demand, driven by e-commerce and ongoing supply chain disruptions, resulting in a 12% year-over-year increase in freight rates and shipments.
Digging deeper, Africa's export rate declined by 5% year on year, but the index noted that "export rates remained stable or increased slightly in other major global origin regions," with the Middle East/South Asia and Asia Pacific increasing by 56% and 22%, respectively.
In weeks 30 and 31, with zero increases compared to the previous two weeks, the index showed a 1% decline in freight rates and volumes - although still up 9% and 12% respectively compared to 2023.
In addition, WorldACD noted that despite ongoing domestic logistical and political turmoil, including the ouster of the prime minister, "Bangladesh's air cargo volumes rebounded in Week 31."
"After a significant decline in the first two weeks (28th and 29th), cargo volumes from Bangladesh to Europe recovered in the 31st week to the levels of the 25th to 28th week," the company added. Freight volumes in recent weeks have remained well below year-ago levels.
"Spot freight rates from Bangladesh to Europe increased further in Week 31, reaching the highest level of the year at $4.87 / kg, which is already the highest level for all of 2024, as disruptions to air services and customs in Bangladesh added to the already tight market capacity."
In terms of individual operators, freighter lessor and operator ATSG had a disappointing second quarter, with a 7.7% drop in revenue (to $488.4 million) for the three-month period, resulting in a 80.5% plunge in net profit to $7.4 million.
The downward trend was reflected in its half-year figures, where revenue fell 5.5 per cent to $974m from just over $1bn in the same period last year, while net profit fell 72 per cent to $16m.
CEO Mike Berger said, "Our second quarter results were impacted by lower airline flight hours and the scheduled return of the Boeing 767-200 freighter a year ago.
"However, we exceeded our internal expectations for the quarter and are on track for further improvement in the second half, especially the fourth quarter." We are encouraged by the free cash generated and have again raised our full-year adjusted Ebitda guidance."
A surge in demand since the end of June seems to support his optimistic view, with ATSG having leased four aircraft.
