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Air Charter Service breaks record again with $1.8bn in revenues

Air Charter Service (ACS) has reached sales of $1.8 billion (£1.3bn) for their year ending 31st January 2022, with strong growth and record sales across all divisions. The company’s global presence and diversified business model have proved highly attractive to existing and new customers navigating the travel and logistical issues presented by the pandemic.

The company’s cargo division continued to experience unprecedented demand for its services, especially as a result of its substantial Chinese presence (three successful offices) and ability to source passenger aircraft for temporary use as freighters. The well-publicized supply chain issues facing so many industries resulted in high demand for air freight, but with a continued capacity shortage, due to the slow recovery of the scheduled passenger market which previously provided between 50%-70% of global air freight capacity, has driven demand towards charter. Manufacturers from the automotive, consumer electronics, pharmaceutical, and even textile industries have required unprecedented levels of charter capacity. Whilst it is expected that cargo demand could drop off at some point as the backlog of goods eases, it is impossible to predict either when this will happen or what the fall in demand will be.

ACS’s private jet division saw nearly a 40% increase year-on-year. This put it at 20% above pre-pandemic levels, compared with the estimated 7.5% growth in flights for the charter sector as a whole compared to pre-pandemic levels, indicating a significant increase in market share. Despite the lower charter revenues of business relating to events and leasing to airlines continuing to hurt flight volumes, the company’s group charter division grew 20% in terms of flight volumes year-on-year and is now back up to 93% of pre-pandemic levels. However, the increase in long-haul charters arranged by ACS’s Group charter team resulted in revenue growth of 40% year-on-year reaching record levels.

Group Chairman Chris Leach said: “At the end of our previous financial year, we predicted that sales would be extremely difficult to maintain at last year’s levels. So, for our team to deliver 45% growth and turn-over $1.8bn, are incredible achievements and the proudest I have felt in the 32 years since I set up Air Charter Service.

“As for the future, and given the current climate, my only prediction would be unpredictability. The first two calendar months of 2022 have continued at the same pace as 2021 and with what visibility we have we believe this will continue through Q1 at least. In such a turbulent world, inevitably there will be a point where the market could materially shift for any of our three main divisions. However, many of the possible shifts which could potentially impact the results of one division could end up benefiting another. So, our approach has been to invest in strengthening all areas of the business and the benefits of those investments
will make us a far stronger business going forward as we prepare for all eventualities.”

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