Showing posts with label ATSG. Show all posts
Showing posts with label ATSG. Show all posts

27 March, 2024

My Freighter leases third 767 from ATSG

Air Transport Services Group, Inc confirmed this week that it has delivered a newly converted Boeing 767-300 freighter to My Freighter Cargo Airlines of Tashkent, Uzbekistan.

This delivery marks ATSG’s fourth newly converted Boeing 767-300 dry-lease delivery this year, as outlined in its fourth-quarter investor release on February 26, 2024.

ATSG's subsidiary, Airborne Global Leasing, executed this delivery in alignment with ATSG's Lease+Plus strategy, which provides freighter capacity and associated aviation services to meet demand within established and emerging global freight markets.

“Our expanding relationship with My Freighter exemplifies the tangible value of our Lease+Plus strategy,” said Paul Chase, chief commercial officer of ATSG. “The Boeing 767-300 continues to be the freighter of choice among e-commerce integrators and express carriers as it provides the operational flexibility and efficiency to build those networks.”

ATSG continues to focus on global market opportunities in Central and Southeast Asia to enhance its global leasing network. ATSG's freighter offering, including the Airbus A321 and A330 freighters, is poised to meet increased capacity growth demands in these growing global markets.

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19 March, 2024

ATSG delivers additional Boeing 767 Freighter to DHL

Cargo for DHL
Air Transport Services Group, announced this week that it has commenced a new lease agreement with DHL Network Operations (USA), Inc. under which ATSG’s Cargo Aircraft Management (CAM) has leased a 767-300 freighter aircraft to DHL to operate within DHL’s global network.

“As one of our longest leasing relationships, we take pride in identifying opportunities to enhance capacity within the DHL network,” said Paul Chase, chief commercial officer of ATSG. “The Boeing 767 remains unrivalled in the medium-widebody freighter market, serving as the backbone for lessees by offering payload capacity and range capabilities to optimize express delivery operations.”

The agreement will increase the total CAM-leased 767 fleet at DHL to fourteen.

“Leasing customers recognize our Lease+Plus strategy as an opportunity to increase capacity and meet market demand,” stated Chase. “No other company in the world can compete with our bundle of services for midsize freighters, including leasing, air express operations, heavy maintenance, freighter conversions, and logistics services.”

DHL eBrochure

28 February, 2024

ATSG Reports Fourth Quarter and Full-Year 2023 Results

Air Transport Services Group, the leading provider of medium wide-body freighter aircraft leasing, contracted air transportation, and related services, today reported consolidated financial results for the quarter and year ended December 31, 2023. Those results, as compared with the same periods in 2022, were as follows:

Fourth Quarter Results

  • Revenues $517 million, down 3%
  • GAAP Loss per Share (basic) from Continuing Operations $0.24, down $0.82
  • GAAP Pretax Loss from Continuing Operations $15.6 million, including $24.4 million non-cash settlement expense associated with the partial termination of a pension plan
  • Adjusted Pretax* Earnings $19.8 million, down 69%
  • Adjusted EPS* $0.18, down $0.35
  • Adjusted EBITDA* $129.9 million, down 20%

Full Year 2023 Results

  • Revenues $2.1 billion, up 1%
  • GAAP EPS (basic) from Continuing Operations $0.87, down $1.80
  • GAAP Pretax Earnings from Continuing Operations $84.2 million, including $24.4 million non-cash pension settlement expense
  • Adjusted Pretax Earnings* $146.7 million, down 44%
  • Adjusted EPS* $1.46, down $0.82 or 36%
  • Adjusted EBITDA* $562 million, down 12%
  • GAAP Operating Cash Flows $654 million, up 39% and Adjusted Free Cash Flow* $435 million, up 52%

Joe Hete, chairman and chief executive officer of ATSG, said, "As expected, the fourth quarter saw lower demand in our leasing segment and reduced demand in our passenger airline operations. Flying for the U.S. military decreased throughout the quarter, and fewer leased Boeing 767-200 freighters in service continued to affect results at our leasing segment. Despite challenges in the second half of 2023, we converted and leased thirteen aircraft, including our first three Airbus A321-200 freighters. We have substantially reduced our capital spending plans, and now expect to generate positive cash flow in 2024."

2023 Operating Highlights

  • Ten more dry leases of newly converted Boeing 767-300 freighters, plus dry leases of three newly converted A321-200 freighters. One of those newly converted 767-300 freighters is operated by an ATSG cargo airline under a Crew, Maintenance and Insurance (CMI) agreement.
  • Three more customer-provided 767-300 freighters were subleased to and operated by an ATSG cargo airline during 2023, for a total of sixteen such aircraft in the fleet at the end of the year.

2023 Financial Highlights

  • Revenue of $2.1 billion in 2023, an increase of $25 million from 2022, due primarily to a full year of contributions from six new leases of 767-300s made in 2022, as well as partial-year contributions from 2023 leases of the ten newly converted 767-300 freighters and three newly converted A321-200 freighters.
  • $562 million in Adjusted EBITDA for 2023, down $79 million. Weaker performance in our airline operations and lower leasing segment results attributable to the 767-200 freighter fleet more than offset the benefits of newly converted 767-300 freighter leases. The decline in Adjusted EBITDA from the 767-200 freighter aircraft leases and related engines was approximately $33 million.
  • Growth investments of $574 million. These investments supported leased freighter deployments in 2023, and those we aim to deploy in 2024 and 2025.
  • Repurchases of 7.4 million ATSG common shares in 2023. Shares repurchased since October 2022 represent 13% of the 74 million shares outstanding at the beginning of 2022.
  • Secured $400 million of additional debt capital via a new six-year convertible bond offering; proceeds were used primarily to retire other existing debt and repurchase shares.

27 January, 2024

ATSG names new president of airline subsidiary ATI

Air Transport Services Group, announced the retirement of James O'Grady, President of Air Transport International, Inc., an airline subsidiary of ATSG, and the appointment of his replacement, Mike Betson.

O'Grady served as President of ATI since January 2016. Prior to that he had been Chief Operating Officer since September 2014. Before joining the airline, he held management positions in other ATSG subsidiaries, including serving as Managing Director of Global Flight Source, a subsidiary of ATSG subsidiary Airborne Global Solutions. O'Grady began his career with the company at ATSG subsidiary ABX Air in 1983.

"Jim's unwavering dedication to the corporation's success has been nothing short of extraordinary," said Joe Hete, chairman and chief executive officer of ATSG. "Throughout four decades of service, Jim consistently demonstrated an exceptional level of commitment, vision, and passion for executing ATSG's strategic mission. We wish him the very best for the future."

"As we go forward," continued Hete, "ATI will be in good hands with Mike, whose leadership has already proven decisive in continuing the airline's record of success."

Betson has overseen the day-to-day operations of the airline as Chief Operating Officer since 2021. Prior to joining ATI, he was Vice President of Industrial Engineering for United Parcel Service, where he was responsible for global planning, execution, and service results for over 17,000 employees including airline pilots, mechanics, package handlers and vendors. Betson holds a bachelor’s degree in organizational management from Cabrini University.

14 December, 2023

ATSG raises over $317,000 with charity golf events

Air Transport Services Group raised more than $317,000 during their charity golf series held this year. Proceeds will be distributed by the ATSG Charitable Foundation with a focus on supporting education, veteran, and wellness programs.

The outings were held at Countryside Country Club in Tampa, Fla., Elks 797 Golf Club and Snow Hill Country Club in Wilmington, Ohio. In total more than 250 participants took part in the tournaments, which were supported by 66 sponsors from around the globe.

At a reception following the ATSG charity tournament, guest speaker Rob Schafer spoke about his experiences with the U.S. Special Forces in Afghanistan, which were the subject of the 2018 feature film 12 Strong, and about the subsequent founding of veteran-owned distillery Horse Soldier Bourbon in Kentucky.

16 November, 2023

ATSG Delivers Boeing 767-300BCF to My Freighter

Air Transport Services Group subsidiary, Airborne Global Leasing has delivered a newly converted Boeing 767-300 freighter to new customer My Freighter Cargo Airlines of Tashkent, Uzbekistan under the terms of a multi-year lease.

“Through its LeasePlus+ service model, ATSG continues to provide unparalleled capacity opportunities to global air cargo customers,” said Paul Chase, chief commercial officer of ATSG. “This delivery to My Freighter expands that reach by building capacity in a region recognized for facilitating trade between Europe and East Asia.”

My Freighter has provided first-class charter air cargo services in Uzbekistan and Central Asia since 2019.

"We are very pleased to announce the start of our long-standing business partnership with Air Transport Services Group,” said Abdulaziz Abdurakhmanov, chief executive officer of My Freighter. “This partnership and addition of the Boeing 767-300BCF to our fleet will allow us to enhance our capabilities and provide our customers with an even more reliable and efficient service. We are confident that this collaboration with ATSG will bring mutual benefits and contribute to the sustainable growth of both our companies.”

“As ATSG continues to grow its LeasePlus+ model globally,” said Chase, “not only will we offer Boeing 767 and Airbus A321 freighters, but A330 freighters also will be available in 2024, supporting e-commerce and express customers in growing regions such as central and south Asia.”

03 October, 2023

ATSG Names Mike Berger as President

Air Transport Services Group, the global leader in medium wide-body freighter aircraft leasing, air operations, and support services, today announced that its Board of Directors has elected Mike Berger, 62, currently Chief Strategy Officer, as President of ATSG, effective October 1, 2023.

In his new role, Berger will continue to lead ATSG's transformational growth as the market leader in freighter leasing and air operations. He will be responsible for aligning the business operations with the company's long-term strategic plans. He will continue to report to Rich Corrado, who remains the Chief Executive Officer and a Director of ATSG.

Joe Hete, current Chairman of the Board, and former CEO, noted, "This is a key step in the expansion of Berger's responsibilities, to assume responsibility for the operating companies, as well as the commercial business. Corrado, as chief executive officer, will focus primarily on ATSG's strategic planning and management team development for the future."

Berger joined the company in 2018 as chief commercial officer and president of the company's Airborne Global Solutions subsidiary. He was promoted to chief strategy officer in 2022. Prior to joining ATSG, he held senior leadership positions at major air express companies including DHL, TNT in Europe, and with Dicom Transportation Group of Canada. He started his career with Airborne Express. He has a bachelor's degree in business management from Temple University.

"Mike is a visionary business leader with a proven record of success," said Corrado. "His keen understanding of the global air freight industry and his ability to forge strong relationships with key customers have been, and will continue to be, decisive factors in ATSG's emergence as the world's premiere freighter lessor."

"I am honored and humbled to move into this new role," said Berger. "I look forward to continuing to realize ATSG's successful strategy of delivering its unique portfolio of flexible, innovative air transportation solutions to air carriers, e-commerce leaders, and government agencies in order to maximize shareholder value and drive long-term sustainable growth."

14 August, 2023

ATSG completes record month of freighter deployments

Air Transport Services Group, a leading provider of medium wide-body aircraft leasing, contracted air transportation, and related services, announced today that its leasing subsidiary Cargo Aircraft Management (CAM) has delivered a record six converted freighters under lease in one month to customers around the globe, bringing ATSG’s total deliveries this year to nine.

Converted freighter deliveries by the company in the past month, each of which are under lease for a term of seven years, include:

Two Airbus A321-200 delivered to Raya Airways of Malaysia, which also currently operates three Boeing 767-200 aircraft leased from CAM.
A Boeing 767-300 leased to Cargojet Airways of Mississauga, Canada, bringing the total number of their CAM-leased Boeing 767 freighters to four.
A Boeing 767-300 leased to new customer Georgian Airlines LLC of Tbilisi, Georgia.
A Boeing 767-300 leased to Amerijet International Airlines of Miami, Florida. CAM now leases a total of ten Boeing 767-300 freighters to Amerijet.
A Boeing 767-300 leased to SkyTaxi of Wroclaw, Poland. SkyTaxi also leases two Boeing 767-200 freighters from CAM.

"We delivered six aircraft to operators in five countries in one month, demonstrating the success of our globalization strategy," said Paul Chase, chief commercial officer of ATSG. "The global demand for our medium-widebody converted freighter aircraft has remained strong due to the continued expansion of global express and e-commerce markets. We are meeting this demand by continuing to deliver 767 converted freighters while also introducing A321 and A330 freighters to the market in 2023 and 2024 respectively."

04 August, 2023

ATSG Reports Second Quarter 2023 Results

Air Transport Services Group, one of the leading providers of medium wide-body aircraft leasing, contracted air transportation, and related services, today reported consolidated financial results for the second quarter ended June 30, 2023. Those results, as compared with the same quarter in 2022 were as follows:

Second Quarter 2023 Results

Revenues of $529 million, up 4%
GAAP EPS (basic) from Continuing Operations of $0.54, down $0.19
Adjusted EPS* from Continuing Operations of $0.57, versus $0.59 diluted
Pretax Earnings of $50 million, down from $69 million.
Adjusted Pretax* Earnings of $58 million, down from $67 million
Adjusted EBITDA* of $157 million, comparable to prior year
3.9 million shares repurchased since October 2022, including 950,000 shares in the second quarter

Rich Corrado, President and CEO of ATSG, said, “Our results in the second quarter reflect a rebound from the first quarter in our passenger airline operations, including both improved revenues and cost efficiencies, and the benefit of 13 more Boeing 767-300 freighters in service at June 30 this year versus a year ago. Adjusted EBITDA was in-line with the prior year period, despite continuing inflationary effects on our operations versus the second quarter of 2022. We remain confident in executing our plan to lease nineteen newly converted freighters in 2023, including nine leased to date. We continue to expect attractive returns on what we now project will be $785 million in 2023 capital spending, down $65 million compared with prior guidance.”

* Adjusted EPS (Earnings per Share), Adjusted Pretax Earnings, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted Free Cash Flow are non-GAAP financial measures and are defined and reconciled to GAAP measures at the end of this release.

Segment Results

Cargo Aircraft Management (CAM)

Aircraft leasing and related revenues from external customers in the second quarter were up 4% compared with the prior year quarter, driven by higher average lease rates as more 767-300s have been deployed, offset in part by fewer leased 767-200 aircraft.
Pre-tax earnings decreased 22% to $31 million versus the prior year quarter. Earnings were impacted by the scheduled return of ten 767-200s since June 2022, including seven in the second quarter this year. Interest expense versus the prior year period increased $5 million, and depreciation was up $2 million, also impacting pre-tax earnings.
CAM deployed one 767-300 leased freighter to an external customer during the quarter. Six more leased freighters have been deployed since June 30, 2023, including four more 767-300s, and two A321-200s.
Twenty-three aircraft are currently in or awaiting conversion to freighters. That total includes seven A321 aircraft and sixteen 767-300s.

 ACMI Services

Pre-tax earnings were $24 million in the second quarter, up 10% versus the prior year quarter, driven by improved performance of passenger operations, including both military and commercial flying, and greater operating efficiencies.
Revenue block hours for ATSG's cargo airlines were up 1% for the second quarter while operating a net three more 767 freighters compared with the prior-year period. Cargo block hours were affected by the loss of certain long-haul ACMI flying between the U.S. and Europe versus 2022.
Hours flown by the four Boeing 757 combination freighter-passenger aircraft were up significantly due to the resumption of a Pacific route in late 2022.
Passenger block hours, including combi flying, decreased 2%. The prior-year quarter included passenger hours flown for additional routes to Europe.

20 July, 2023

ATSG names new president of Omni Air International

Air Transport Services Group, announced this week the appointment of David Ray as president of Omni Air International, Inc., an airline subsidiary of ATSG, to succeed Dan Orcutt.

Ray joined the airline in 2018 as its director of training before being promoted to vice president of operations in 2019 and chief operating officer in 2021. His prior experience includes senior executive-level roles in the aviation, construction, and medical industry. Ray is a licensed Airline Transport Pilot with over 13,000 flight hours.

"David's contributions at Omni over the past five years cannot be overstated," said Rich Corrado, president and chief executive officer of ATSG. "His operational leadership -- particularly during the pandemic -- has been crucial to the airline's success. His industry knowledge and business acumen make him the ideal leader to guide Omni into the future."

Ray succeeds Dan Orcutt, a 26-year veteran of the US Air Force who served as president of Omni since 2021.

"I am excited about David’s appointment to lead this incredible airline," said Orcutt.  "We wish Dan well in his new endeavours and thank him for his service to the company and to our nation," said Corrado.

Omni Air International is an FAR Part 121 and IOSA registered airline headquartered at Tulsa International Airport in Tulsa, Oklahoma. Omni specializes in ACMI leasing and worldwide passenger charter flights to more than 80 countries a year, principally for U.S. and allied governments, scheduled airlines, and charter customers, using its exceptional fleet of Boeing 777-200ER, 767-300ER, and 767-200ER aircraft. Omni is a wholly owned subsidiary of Air Transport Services Group, Inc. 

05 May, 2023

ATSG saw revenues of $501 million in the first quarter of 2023.

Air Transport Services Group, one of the leading global providers of medium wide-body aircraft leasing, contracted air transportation, and related services, has released this week its latest results for the first quarter of the year.

The company reported revenues are up 3% to an amazing $501 million, and its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)  was $138 million, down $20 million. 

Rich Corrado, president and chief executive officer of ATSG, said, "These results, while disappointing, do reflect the operating headwinds we talked about in February, including lower 2023 results at our airlines. The first quarter Adjusted EBITDA reflected lower than expected passenger airline revenues and the continued impact of inflation at our airlines. Our aircraft leasing business, CAM, has seen no reduction in demand for its desirable leased freighters, and continues to invest with the expectation of delivering attractive returns for the midsize freighter aircraft we expect to lease during the rest of 2023 and into 2024."

Segment Results

Cargo Aircraft Management (CAM)

Aircraft leasing and related revenues from external customers in the first quarter were up 8% compared to the first quarter of 2022, primarily reflecting the benefit of eight newly converted Boeing 767-300 freighters leased since the beginning of the first quarter of 2022, offset by lower revenues from engine pooling arrangements for customers leasing 767-200 freighters.
CAM’s first-quarter pretax earnings decreased 2% to $34 million versus the prior-year quarter. Those earnings were impacted by $2.3 million more interest expense allocated to CAM, driven by more aircraft assets, including feedstock in or awaiting freighter modification.
CAM deployed two 767-300 freighters to an external customer during the quarter. One 767-200 freighter was returned upon lease expiration. Ninety-two CAM-owned 767 freighter aircraft were leased to external customers at the end of the quarter, six more than a year ago.
CAM intends to deploy eighteen more freighters in 2023, including twelve 767s and six A321s. Twenty-seven CAM-owned aircraft were in or awaiting conversion to freighters, twelve more than a year ago. That quarter-end total includes nine A321 aircraft and eighteen 767s.

ACMI Services

26 April, 2023

ATSG delivers its first Boeing Converted Freighter to Amerijet


                               Air Transport Services Group, the world's largest lessor of freighter aircraft, recently announced the addition of two newly converted Boeing 767-300 freighters to their leasing fleet, one of which is the company's first Boeing Converted Freighter (BCF). The second aircraft was converted by Tel Aviv-based Israel Aerospace Industries.

ATSG's leasing subsidiary, Cargo Aircraft Management, will lease both aircraft to Miami-based Amerijet International, which currently leases nine other aircraft from CAM. This dual delivery is a demonstration of ATSG's successful supply chain diversification in meeting market demand for full freighter conversions.

“Today we acknowledge an important milestone in the history of our company,” said Paul Chase, the chief commercial officer of ATSG, “a milestone that signifies not only our ability to execute on a clear corporate vision, but also demonstrates yet another step we’ve taken to establish ourselves as the global leader in freighter leasing.”

The leadership teams of ATSG and Amerijet addressed employees of ATSG subsidiaries, thanking them for their accomplishments and referencing the companies' shared histories.

17 March, 2023

ATSG ends 2022 with over $850,000 raised for charity

Air Transport Services Group, Inc has reported that it gave over $850,000 during 2022 to charities and good causes, an increase of more than 65 percent over the 2021 total. 

ATSG has a long history of charitable giving in the communities where its companies operate and its more than 5,300 employees live. Increased funding was realized by amplifying the charitable contributions of ATSG’s employees, vendors, and customers around the globe. Fundraising events throughout the year included golf outings, corporate donations, and pledge drives by employees of each of the company's subsidiaries to support charities important to them.

Among the organizations benefiting are the United Way, Habitat for Humanity, Dolly Parton’s Imagination Library, American Cancer Society, American Heart Association, American Red Cross, ATSG Cares, 4H Youth Programming, Lymphoma & Leukemia Society, River Parks Foundation, Wounded Warrior Project, as well as the most recent addition to the company's charity recipients, Folds of Honor, which provides life-changing scholarships to spouses and children of fallen or disabled U.S. military service members and first responders.

24 February, 2023

ATSG Reports Record 2022 Revenues

Air Transport Services Group, Inc. the leading provider of medium wide-body aircraft leasing, contracted air transportation, and related services, today reported consolidated financial results for the quarter and year ended December 31, 2022. 

Fourth Quarter Results

  • Revenues $533 million, up 11%
  • GAAP EPS (basic) from Continuing Operations $0.58, down $0.02 on GAAP Pretax Earnings from Continuing Operations $61.2 million, up 1%
  • Adjusted Pretax* Earnings $65 million, up 16%
  • Adjusted EPS* $0.53, up $0.03
  • Adjusted EBITDA* $163 million, up 5%

Full Year 2022 Results

  • Revenues $2.0 billion, up 18%
  • GAAP EPS (basic) from Continuing Operations $2.67, down $0.66 on GAAP Pretax Earnings from Continuing Operations $260 million, down 14%
  • Adjusted Pretax Earnings* $263 million, up 51%
  • Adjusted EPS* $2.28, up $0.67 or 42%
  • Adjusted EBITDA* $641 million, up $100 million or 18%
  • Operating Cash Flows $472 million and Adjusted Free Cash Flow* $285 million

Rich Corrado, president and chief executive officer of ATSG, said, "In 2022, our revenues and Adjusted EBITDA each grew 18%, with revenues reaching a record $2 billion, and Adjusted EBITDA increasing $100 million to $641 million. Our Adjusted Pretax Earnings also grew sharply, excluding 2021 benefits from pandemic related government grants for our passenger airline. At the same time, we invested nearly $600 million in our businesses which will allow us to take advantage of the continued attractive leasing market for midsize freighter aircraft. I expect those investments and the outstanding performance of our employees to drive even more robust growth and earnings in the years to come."

2022 Operating Highlights

  • Six more dry leases of Boeing 767-300 freighters, plus one re-lease and four lease extensions of Boeing 767-200s. Two of the six newly converted 767-300 freighters leased last year are also being operated by ATSG’s airlines under Crew, Maintenance and Insurance (CMI) agreements.
  • Seven more customer-provided 767 freighters were subleased to and operated by ATSG’s cargo airlines during 2022, totaling thirteen such aircraft in the fleet at the end of the year.
  • Feedstock aircraft secured for the twenty freighters ATSG expects to lease in 2023.
  • Completed a strong schedule of passenger airline missions for government customers, including the resumption of a full schedule of combi service worldwide for the Department of Defense.
  • Executed a six-year extension and expansion of ATSG’s longstanding commercial relationship with DHL. The number of 767s our airline operates for DHL has more than doubled since the beginning of 2021.

06 February, 2023

ATSG offers an outlook for fleet transitions in 2023 and beyond

Air Transport Services Group, Inc. has provided outlook guidance for changes in its operating fleet of cargo aircraft. The guidance is in anticipation of meetings that ATSG executives will hold with investors on February 7, 2023, at the Stifel Transportation and Logistics Conference in Amelia Island, Florida.

At the conference, ATSG will maintain guidance provided on November 3, 2022, for full-year 2022 Adjusted Earnings Before Interest, Taxes and Depreciation. Fourth quarter and full year 2022 results will be announced in late February 2023.

Regarding its outlook for cargo aircraft leases and subsidiary airline operations in 2023 and beyond, ATSG expects to:

Through its Cargo Aircraft Management (CAM) subsidiary, complete the passenger-to-freighter conversion and deliver fourteen Boeing 767-300 freighter aircraft in 2023 and sixteen in 2024, most of which will be leased to customers based outside the United States.
Complete the passenger-to-freighter conversion and deliver at least six Airbus A321-200 cargo aircraft to fulfill lease orders from customers based in Europe and Asia. A similar number of Airbus A321-200 cargo conversions and deliveries are anticipated in 2024. Deliveries and dry leases, however, are pending regulatory review by the European Union Aviation Safety Agency (EASA). ATSG anticipates EASA approvals for the A321-200 design it developed via a joint venture before mid-year 2023.
Begin the passenger-to-freighter conversion of what it expects to become a leased fleet of thirty Airbus A330-300s, equal to the number for conversion slots it holds. CAM expects to begin leasing A330 freighters in 2024 and continuing into 2028. It has already received customer commitments to lease more than two thirds of those A330 freighters, which are medium widebody aircraft that perform regional missions, but with greater payload and range than Boeing 767-300 freighters.


Continue to lease into 2024 four of twelve Boeing 767-200 freighters currently leased to Amazon and operated by ATSG’s cargo airlines. Leases for the other eight are due to expire between May and September 2023. CAM expects to retire at least three of the eight due to airframe cycle limitations and utilize the engines removed to support other 767-200 lease customers. CAM expects to re-lease and/or sell the remaining five 767-200 freighters which Amazon may not extend.
Operate 767 freighters dedicated to principal customers DHL and Amazon for reduced schedules and fewer block hours per aircraft across the United States in the first half of 2023 versus 2022. Both companies are adjusting their ground and air distribution and fulfillment networks in the United States to conform to reduced U.S. economic growth and consumer spending levels in the first half of 2023. ATSG’s passenger aircraft operations are likely to face similar effects.
Rich Corrado, president and CEO of ATSG, said, “Despite the macroeconomic headwinds, we expect moderate Adjusted EBITDA growth for ATSG in 2023, reflecting the resilience of our business model. Demand to lease the newly converted freighter types we offer remains as strong as ever. The entry into new Airbus platforms along with the significant increase in leasing deliveries will increase our capital expenditures above 2022 levels. But clearly, 2023 will be a transition year for us, due to both a changing mix of leased freighters in service, and changes in flight schedules from customers of our U.S. airlines. I look forward to sharing our outlook for 2023 in more detail when we report our fourth-quarter 2022 earnings results in late February.”

Images ATSG

22 November, 2022

TSG Selects Paul Chase as New Chief Commercial Officer

Air Transport Services Group, has announced that Paul Chase, an experienced air cargo industry executive, will assume Mike Berger’s responsibilities as Chief Commercial Officer when Berger transitions to Chief Strategy Officer, effective December 5, 2022.

Chase will assume responsibility for sales, marketing strategy and execution for the ATSG family of companies. He will report to ATSG President and CEO Rich Corrado.

"Paul’s background includes a number of roles that relate directly to fostering new and ongoing relationships with leading companies in the markets we serve,” Corrado said. "I am confident that his complementary skills will help guide ATSG's leadership team toward investments, service offerings and business relationships that leverage our experience, assets and innovative people, and extend our leadership in the midsize, dedicated aircraft markets we serve."

Berger has accepted the newly created position of Chief Strategy Officer, responsible for the analysis and development of new ventures consistent with ATSG’s global business strategy. Berger joined ATSG as CCO in February 2018. ATSG has had a strong focus on growing its business globally in recent years, and Berger’s new role will allow for further concentration in key development areas.

28 September, 2022

ATSG Elects Jeffrey Dominick to Board of Directors

Jeffrey A. Dominick
Photo ATSG
Air Transport Services Group, has announced that its Board of Directors has elected Jeffrey A. Dominick to the Board, effective September 26, 2022.

Dominick, 57, is a Managing Partner of Westport, Connecticut-based AirWheel Investments L.P., a private equity fund founded in 2015 that invests in the commercial aviation sector. He holds a Bachelor of Arts degree in Economics from St. Lawrence University.

He previously served on the Board from 2008 to 2012 and was a member of the Audit and the Nominating & Governance committees. He stepped down from the Board when he accepted a position as a Managing Director at Blackrock Inc., a stockholder of ATSG. Dominick left Blackrock in 2015.

Joe Hete, board chairman of ATSG, said Dominick’s return will restore his significant expertise in aircraft acquisition and freighter conversions to the Board.

“We are pleased to welcome Jeff back to the Board,” Hete said. “His investment acumen and industry knowledge contributed significantly to ATSG’s success during an important period of its history. I expect him to be an equally valuable resource as ATSG continues along its strong growth trajectory.”

Dominick’s election restores the size of the Board to ten Directors. The Board has had nine Directors since the retirement of Rich Baudouin in April 2022. Dominick is expected to be nominated for election to a full one-year term on the Board at the next annual meeting of ATSG shareholders in May 2023.

06 August, 2022

ATSG Reports Strong Second Quarter 2022 Results

Air Transport Services Group, Inc, the leading provider of medium wide-body aircraft leasing, contracted air transportation, and related services, reported consolidated financial results for the second quarter and six months ended June 30, 2022, this week.

ATSG's second quarter 2022 results, as compared with the second quarter 2021, include:

Second Quarter 2022 Results

  • Revenues of $510 million, up 24%
  • GAAP Earnings of $54 million, or $0.73 per share basic, down from $80 million, or $1.17. Second quarter 2021 results included $38 million pretax in government grants representing pandemic relief for ATSG’s passenger airline, $30 million in incremental pretax gains primarily related to warrant revaluations.
  • Adjusted Earnings Per Share* of $0.59, versus $0.35 a year ago. Amounts exclude, among other items, government grant and warrant revaluation gains. Results for each year reflect additional shares for a change in GAAP presentation related to convertible notes
  • Adjusted Pretax Earnings* of $67 million, up 80%
  • Adjusted EBITDA* of $158 million, up 23%
  • Operating Cash Flow of $125 million, versus $183 million for the year ago quarter ended June 30. Also, Adjusted Free Cash Flow* of $72 million, versus $123 million for the year ago quarter, reflecting higher customer receivables.

Rich Corrado, president and chief executive officer of ATSG, said, "Leasing converted midsize freighter aircraft and flying them in express-package networks remained a powerful and resilient driver of our strong cash flow in the second quarter. CAM, our aircraft lessor, again fueled our adjusted earnings momentum, with nine more Boeing 767 freighters leased to third-party customers than a year ago. Our cargo airlines continue to fly more hours, using both freighters that CAM owns plus others that customers have assigned to them. Inflation-driven increases in employee costs, contracted labor, crew travel and other costs are affecting our ACMI Services results and we are taking steps to mitigate the impact where we can."

* Adjusted Earnings Per Share, Adjusted Pretax Earnings, Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures and are defined and reconciled to GAAP measures at the end of this release.

Segment Results


  • External leases of nine more Boeing 767s since June 2021 contributed to CAM’s 24 percent second-quarter revenue gain. CAM also realized more 2022 revenues from new pay-by-cycle engine support services with several lessees of its 767-200 freighters. Aircraft leasing and related revenues from external customers were up 21 percent.
  • CAM’s second-quarter pretax earnings increased 76 percent to $39.6 million versus the prior-year quarter. Allocated interest decreased $3 million and depreciation increased $6 million.
  • Eighty-nine CAM-owned 767 freighter aircraft were leased to external customers as of June 30, 2022. CAM expects to lease six more freighters in the second half, including four 767s and two Airbus A321-200s.
  • CAM purchased five 767-300 and four A321-200 passenger aircraft during the first half for conversion to freighters. One CAM-owned 767-300 passenger aircraft was removed from service with Omni Air and scheduled for freighter conversion. Nineteen CAM-owned aircraft were in or awaiting conversion to freighters as of June 30, 2022, consisting of fourteen 767-300s and five A321s.

ACMI Services

  • Second-quarter revenues increased 27 percent to $347 million. Block hours for ATSG's airlines reflected sharply higher passenger flying and the benefit of four more CAM-leased freighters in CMI service than a year ago, plus four more 767 freighters provided by customers for our airlines to operate.
  • Second-quarter flight schedules were up from a year ago, particularly for passenger charter operations. Revenue block hours increased nine percent overall, including a 13 percent increase for passenger and combi flying and a 7 percent increase for cargo aircraft.
  • Pretax segment earnings decreased $23 million to $22 million for the quarter. Prior-year results included $38 million from government grants awarded to offset pandemic effects on Omni Air’s passenger operations.
  • Excluding the government grants, segment earnings more than tripled from a year ago.
  • Second-quarter results were affected by additional costs for crew coverage and inflation-driven increases in operating costs, including crew travel, fuel costs for positioning aircraft, and labor costs, including contracted worker costs.

01 July, 2022

Air Transport Services Group's ABX Air names new Chief Operating Officer

Air Transport Services Group,  subsidiary ABX Air, has named Patrick Fluegeman as the airline's new Chief Operating Officer, effective immediately. 

Fluegeman joined ABX Air in 2016 as Director of Operations Analysis and was named Director of Strategic Operations the following year. In 2021 he was promoted to Vice President & Senior Operations Executive.

“Patrick’s strategic-minded approach and strong business acumen have been critical in ABX Air’s success over the last five years,” said ABX Air President David Soaper. “He has developed numerous operational and financial disciplines that have been enormously beneficial to the company, and the strong rapport he has built with customers has directly led to a number of growth opportunities.”

Prior to joining ABX Air, Fluegeman worked for Kentucky-based Southern Air, Inc. and the financial services firm Deloitte. He is a Chartered Financial Analyst and holds a bachelor's degree in Business Administration from the University of Cincinnati, where he graduated summa cum laude and was a member of the Carl H. Lindner Honors-PLUS Program.

ABX Air, is a FAR Part 121 cargo airline offering a range of flexible operating solutions that include ACMI and CMI services via dedicated aircraft to customers in the e-commerce and express delivery markets, as well as to the U.S. government. ABX Air delivers reliable, on-time performance with its fleet of Boeing 767 freighters, the asset of choice for express and e-commerce driven networks.

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25 May, 2022

Air Transport Services Group and GA Telesis to open engine maintenance facility at Wilmington Air Park

GA Telesis, LLC, a global aviation services integrator, and Air Transport Services Group, Inc. a leading provider of aircraft leasing and air cargo transportation and related services, announced they have reached an agreement with the Clinton County Port Authority (CCPA), JobsOhio and the Ohio Department of Development to open a 72,000 sq. ft. Specialized Procedures Aeroengine Hospital (SPAH) at the Wilmington Air Park in southwestern Ohio.

“The GA Telesis and ATSG joint venture’s decision to choose Ohio for its newest operation is great news for Wilmington,” said Ohio Governor Mike DeWine. “This investment attracts a world-class aircraft engine maintenance, repair, and overhaul operation business to Ohio and bolsters Wilmington Air Park’s attractiveness for future growth.”

The SPAH is projected to open in September 2022 and will be capable of inducting more than 200 aircraft engines per year, focusing on those manufactured by General Electric and CFM International.

“We are thrilled to be taking the next step in adding a U.S.-based SPAH to our capabilities,” said Russell Shelton, president of the Engine Strategy Group at GA Telesis. “We could not have accomplished this significant milestone without the strategic ATSG partnership and the cooperation of the Clinton County Port Authority and Wilmington Air Park,” he added.

This investment marks the first U.S. location for a GA Telesis SPAH and will provide a variety of engine services to global aviation customers from the Wilmington Air Park location. GA Telesis also operates a SPAH in Helsinki, Finland.