ABX Holdings boosted revenue 33 percent with acquisitions and an expanded fleet of freighters. Interest expense related to the purchases, however, cut net earnings 11 percent below last year's level.

Total consolidated revenue jumped from $288.1 million in the first quarter a year ago to $382.1 million in the three months ending March 2008. With interest expense expanding from $3.2 million to $10.4 million, net earnings fell from $4.3 million to $3.8 million.

ABX acquired the businesses of Cargo Holdings International at the end of 2007, including Air Transport International, and Capital Cargo International Airlines, and Cargo Aircraft Management. Collectively, the CHI businesses contributed approximately $75.4 million, or 80 percent of the year-over-year increase in first-quarter consolidated revenue. The CHI businesses also contributed approximately $1.7 million in net earnings during the quarter, net of acquisition-related interest expense.

ABX also purchased several Boeing 767 freighters to expand its fleet of aircraft available for charter to 40. The decline in earnings principally reflected the increase in interest expense associated with financing the purchases and acquisitions, the company said.

"Our first-quarter results reflect across-the-board growth in each of our operating segments, and substantial growth in our charter segment, plus substantial operating cash flows stemming from our increasing fleet of modern, fuel efficient wide-body freighter aircraft," said Joe Hete, president and CEO.