ABX Air (www.abxair.com), the airline operating unit that was separated from its former parent Airborne Express after DHL Worldwide Express acquired Airborne in August 2003, reported net income of $7.6 million for the fourth quarter of 2003. This compares with a net income of $3.5 million for the same period a year earlier.
"We have continued to focus on further improving productivity while providing premium service," said Joe Hete, president and CEO.
While total revenues actually declined 11.8% to $274.1 million operating expenses dropped 11.2% to $264.1 million. The result, an operating income of $9.9 million, was 25% behind operating income of $13.2 million in the prior-year period. According to ABX, 99% of its revenues were produced by two commercial agreements. One is an aircraft, crew, and maintenance agreement, the other a hub and long-haul services agreement. Both agreements are with Airborne/DHL.
Full-year results for 2003 resulted in a net loss of $446.9 million compared to net income of $13.3 million in 2002. The company said the loss resulted from a $466.1 million impairment charge net of taxes taken during the third quarter of 2003. Excluding the impairment charge, net earnings were $19.2 million. Total revenues decreased 1.1% to $1.16 billion and operating expenses climbed 52.9% to $1.72 billion. As a result, operating loss totaled $559.2 million versus operating income of $48.5 million in the prior year. Results for 2003 reflect 227 days as a wholly owned subsidiary of Airborne Express and 138 days as an independent company.
