Air Transport Services Group withstood the sharp cutback in operations for DHL by reporting an $8.1 million net profit in the second quarter after losing money in the same period a year ago.
The parent of cargo airline ABX Air showed the improvement despite losing nearly half its revenue because of DHL’s decision to drop domestic U.S. service, leaving ATSG with $235.1 million in revenue in the three months ending June 30 compared to $394.9 million a year ago.
ATSG said its operating profit of $11.9 million was nearly evenly split between the remaining DHL business and the aircraft leasing services the Ohio-based carrier has expanded to diversify its business.
But the airline also said its remaining hub and aircraft operations may see more restructuring. DHL this month gave ABX one year’s notice that it will drop the existing services contract. ABX said DHL is still interested in contracting with the carrier for its limited flight needs, “but on a new, more competitive basis.”
The express carrier and its contract carrier have had a testy business relationship, and ATSG said DHL has not paid $7.1 million it owes ABX, money ATSG counted in its second quarter revenue.