Freight Downturn Putting an End to the Post-Pandemic Highs
Air Transport Services Group, a cargo jet lessor and operations provider, said that weakening interest from international airlines has led to a drop in its 2025 profit expectations to the tune of $45 million. Its 3rd quarter earnings call served as a small bellwether for the greater air cargo market at large, given the firm's involvement across the air cargo market. Adjusted earnings sat 16% lower than 2022 for the same quarter, with incoming CEO Joe Hete saying “Our new reality is that growth will be more difficult to achieve than before," thanks to conflicts abroad, continued inflation, and unexpected maintenance costs in addition to the cooling parcel market.