Anthony Berni's questions to ATSG leadership • Q4 2023
Question
Asked for a breakdown of the 2024 EBITDA decline between flying and leasing, details on various expense lines (wages, maintenance, D&A, interest), the status of labor negotiations, the nature of EASA flying opportunities, and how a potential macro slowdown is factored into guidance.
Answer
The EBITDA decline is primarily from 767-200 lease returns impacting the CAM segment and lower block hours in the airline segment. Salary and maintenance costs are expected to fall, offset by higher depreciation and interest. No new labor agreements are anticipated in 2024. EASA opportunities are mainly short-term passenger charters. The 2024 guidance is considered conservative, assuming a flat macro environment rather than a further significant downturn.