ACS posts record 1Q revenues; up 37% to $380m
Despite the strong start, Leach was measured on the outlook.
Air Charter Service (ACS) has reported its strongest ever first quarter, with revenues rising 37% year-over-year to $380m and total charter numbers up 19%, as evacuation flights from the Middle East and supply chain disruptions from the Iran conflict and Storm Marta combined to drive outsized demand across multiple divisions.
Chris Leach, founder and chairman of ACS, said the results were record-breaking across all three of the company’s main divisions.
Stripping out large ongoing contracts that are low-value and high-volume and held flat year-over-year, underlying private jet charter growth came in at 13% with revenues up 27%, boosted by higher-value contracts on larger aircraft and longer sectors, Middle East evacuation work and the pass-through effect of elevated global aviation fuel prices.
“Our group charter division has performed very well, with both charters and revenue up by 40%,” said Leach. “This was buoyed by evacuation flights out of the Middle East, for various governments and large multinational companies. Underlying growth, however, is still very strong.”
The standout performer in volume terms was the cargo division, which saw charter numbers surge more than 70%YoY, with revenues up 41%. Leach attributed the growth in part to supply chain disruptions triggered by the Iran conflict and the knock-on effects of Storm Marta, which caused port closures in Morocco and rerouted freight demand through air.
Beyond the three main divisions, ACS Leasing had what Leach described as an exceptional quarter, with revenue in just three months already surpassing the entirety of last year’s total on the back of several large contracts.
The company’s Time Critical Services division, which handles onboard courier and next flight out sales, posted a 52% increase in contract numbers and 101% growth in revenue under its new leadership team.
Despite the strong start, Leach was measured on the outlook. “We are probably in the most uncertain period since Covid, making it impossible to foresee what effects these situations will have on the charter market going forward,” he said. “Our global footprint, diverse businesses and portfolio of clients do, however, mean that we are well-placed to deal with whatever happens in the coming months.”
ACS’s financial year begins on February 1, with the first quarter closing at the end of April.
