Charter broker Air Charter Service's results exceeded expectations in 2022 with record profits being credited to the post-COVID charter boom continuing further into 2022 than predicted, as well as the growth of its core businesses.
Highlights included a 35 per cent growth in private jet revenue, despite the exit from the company's Russian operations in 2022, along with a total of 28,000 charter flights arranged and more than 2,100 new customers booking for the first time.
Total group revenue had been significantly inflated un 2021 due to COVID-related demand, especially in the cargo sector. This had been expected to fall significantly in 2022, however it continued throughout Q1, giving the company an exceptional start to the year. This was further boosted by strong growth in underlying business throughout the past 12 months. As a result, whilst total group revenue declined from GBP1.29 billion to GBP1.09 billion, EBITDA increased from GBP72 million to GBP82 million.
Chris Leach, Air Charter Service's founder and chairman, comments: “2021's revenue was exaggerated by hundreds of trans-Pacific widebody freighter flights carrying essential COVID-related cargo, along with a backlog of goods caused by the pandemic and subsequent reduction in scheduled service network. Those large, expensive flights continued into the first few months of 2022, but soon tailed off. The huge turnover generated by adding such flights to our business is not likely to be replicated for several years. However, we have been blown away by the performance of our underlying business. Passenger charter revenue reached almost GBP450 million, whilst cargo accounted for close to GBP650 million.
“This past 12 months we have arranged more than 28,000 charter flights in total, on a par with the year before. Whilst cargo numbers have dropped off slightly, we have seen a 15 per cent increase in private jets flights year-on-year, which represents a 29 per cent increase in pre-pandemic levels. Private jet revenue was up 34 per cent on 2021 and 72 per cent up on pre-pandemic levels. This additional revenue is as a result of price inflation and customers booking longer flights on larger aircraft.
“We haven't increased our cost base to reflect this spike in sales, knowing that this was only going to be temporary, so we are in an exceptionally strong position moving forward. Our underlying business is increasing and, whilst we might not hit GBP1 billion this year, our aim is to finish with revenue between GBP800 and GBP900 million, although the first two months of this year have already put us above target.
“To support our underlying growth, we have hired some experienced heads in key regions and grown our staff numbers overall, as well as opening two new offices in 2022, to drive future growth. There are exciting times ahead, with three new office openings in 2023, the first of which has just been announced as Mexico City.”