US air cargo operator ABX Air, Inc., has reported net earnings of $68.9 million for the fourth quarter and $90.1 million for the year ended December 31, 2006. For the year, pre-tax earnings increased 19% over 2005, to $36.0 million, or $0.62 per diluted share, on revenues of $1.26 billion.

"We finished strong in 2006, with earnings gains and positive operating cash flow from support of our largest customer, DHL, and from our own rapidly growing air charter operations," ABX Air President and CEO Joe Hete said. "Those gains provide a solid platform for making still further progress in our businesses during 2007."

ABX Air's pre-tax earnings associated with services it performs for DHL Express (USA), Inc., improved despite lower revenues from that business for both the fourth quarter and full year 2006. Pre-tax earnings from DHL-related services were up 62% to $10.0 million for the fourth quarter of 2006 and up 5% to $22.5 million for the year.

The increase in fourth-quarter DHL-related pre-tax earnings was driven primarily by ABX Air's improved performance against service-related goals under ABX Air's two commercial agreements with DHL.

"We were able to sustain excellent service levels for our largest customer throughout 2006, substantially improving on our 2005 performance," Hete said. "We are proud of the role our people played in helping DHL provide outstanding on-time service to its customers."

Revenues declined in 2006 principally because DHL assumed management of its line-haul trucking operations from ABX Air in May 2006. ABX Air's revenues from those line-haul management operations were approximately $0.3 million in the fourth quarter of 2006, compared with $81.5 million in the fourth quarter of 2005.

ABX Air's fourth quarter 2006 pre-tax earnings include $10.0 million from its two contracts with DHL. Under the aircraft, crew, maintenance and insurance (ACMI) and Hub Services agreements, ABX earns a base mark-up on eligible costs and can earn incremental mark-up revenues for meeting certain quarterly cost, or annual cost or service goals.

"By quarter-end, we had four Boeing 767 freighter aircraft operating for customers other than DHL, including one that entered service late in the quarter," said Hete. "These aircraft were quickly integrated into our ACMI charter businesses, and fourth quarter customer utilization of the aircraft was quite high. We anticipate placing six additional 767 freighters into service during 2007, and we expect these aircraft to contribute significantly to our bottom line based upon the strong customer demand."