ATSG Reports Record First Quarter 2022 Results

One of the World's leading providers of medium wide-body aircraft leasing, contracted air transportation, and related services, Air Transport Services Group today reported consolidated financial results for the quarter ended March 31, 2022.

Rich Corrado, president and chief executive officer of ATSG, said, "The businesses of ATSG are all operating at pre-pandemic levels, with year-over-year gains in revenues and earnings from our airlines, led by Omni Air's passenger flying for military and commercial customers. Our employees again delivered outstanding service during the winter months. Our CMI customers have noticed, and are bringing more of the Boeing 767s they own or lease from others to our airlines to fly in their networks. CAM, our aircraft lessor, contributed to our earnings momentum for the quarter following last year’s record fifteen deployments of leased Boeing 767-300 freighters. To date, CAM has completed the first two of its projected eleven - nine 767-300s and two Airbus A321s - freighter lease deliveries in 2022. We have customer orders for all eleven 2022 deliveries as well as 19 deliveries in 2023, including fourteen 767-300s and five A321s."

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

First Quarter 2022 Results

Revenues of $486 million, up 29%

GAAP Earnings of $50 million, up 18%

Adjusted Earnings Per Share* of $0.56, nearly triple the year-earlier $0.20. Amounts for both years reflect additional shares for a change in GAAP presentation related to convertible notes

Adjusted Pretax Earnings* of $64 million, more than triple $20 million a year ago

Adjusted EBITDA* $158 million, up 49%

Adjusted Free Cash Flow* $89 million, up 13% and $406 million for the trailing twelve months

* 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

CAM

A larger fleet of externally leased Boeing 767s versus a year ago contributed to CAM’s $24 million first-quarter revenue gain. CAM also realized 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 26 percent.

CAM’s first-quarter pretax earnings increased 63 percent to $35 million versus the prior-year quarter.

Eighty-six CAM-owned 767 freighter aircraft were leased to external customers as of March 31, eleven more than a year ago. CAM expects to lease nine more 767 and two A321 freighters in 2022.

 

CAM purchased one 767-300 and two A321-200 passenger aircraft during the first quarter for conversion to freighters. Fifteen CAM-owned aircraft were in or awaiting conversion to freighters as of March 31, 2022, including three A321s.

More Boeing freighter conversions for ATSG

Pictured (l to r) are Boeing Freighter Conversions Director Jens Steinhagen, Boeing Vice President of Commercial Marketing Darren Hulst, ATSG President and Chief Executive Officer Rich Corrado,
and ATSG Chief Commercial Officer Mike Berger. (Photo: Business Wire)

Air Transport Services Groups leasing subsidiary Cargo Aircraft Management has placed a second order with U.S. planemaker Boeing for the conversion of four CAM-owned 767-300 aircraft into Boeing Converted Freighters (BCF), with an option for four additional conversions beyond that. The conversions are slated to begin in late 2023.

“Demand for the 767-300 platform remains strong among e-commerce and express providers,” said Mike Berger, the chief commercial officer of ATSG. “As the world leader in midsize freighter leasing, ATSG is committed to fulfilling our 360-degree brand promise to provide wide-spectrum support for our customers around the globe as they continue to grow market share and expand their reach.”

ATSG’s initial order of four 767-300BCF conversions was announced in November 2021. With these four additional Boeing conversion commitments, ATSG now has secured with its conversion suppliers more than 80 passenger-to-freighter conversion slots over the next five years.

“We are thrilled that ATSG has again selected the 767-300BCF to increase their portfolio and fleet growth for e-commerce and express customers around the world,” said Jens Steinhagen, director of the Boeing Converted Freighter program. “The 767-300BCF is in strong demand, and we are adding three additional 767-300BCF conversion lines at new and existing MRO suppliers around the globe to help customers like ATSG provide their customers with the dedicated freighter capacity they need.”

Follow this site here.

Cargo Aircraft Management Inducts Its First A321 to Freighter Conversion

Cargo Aircraft Management has begun its first Airbus A321 aircraft for passenger-to-freighter conversion. PEMCO Conversions, a division of wholly-owned ATSG subsidiary Pemco World Air Services, Inc., inducted the aircraft today for conversion at its Tampa, Fla. facility.

The aircraft will undergo the A321-200PCF freighter conversion developed by 321 Precision Conversions, a joint venture of ATSG and Oregon-based Precision Aircraft Solutions. The supplemental type certificate (STC) for the conversion received approval from the Federal Aviation Administration in April 2021.

“The induction of this aircraft is significant because it encapsulates the execution of our strategy to offer 360 degrees of service for the aircraft we lease,” said Rich Corrado, president and chief executive officer of ATSG. “We are able to purchase a passenger aircraft, convert it to freighter configuration in-house using the STC developed through our joint venture, then lease it to a customer along with options for ongoing maintenance support, ground support and airport operations, and CMI services for seamless, turn-key operation. This convenient bundled services approach allows our customers to introduce new aircraft quickly to meet the demands of the growing e-commerce segment.”

The A321-200PCF delivers the highest available payload with unmatched versatility, offering the flexible TELAIR main deck cargo loading system and a lower lobe compatible with bulk, sliding carpet, or containerized systems. It has an operating empty weight over 2,000 lb (900 kg) lighter than its closest rival and has been optimized for maximum revenue loads, profitability, fuel efficiency, and room for supernumeraries.

“The A321-200PCF is very well suited for global air-express service and e-commerce fulfilment over shorter routes,” said Mike Berger, the chief commercial officer of ATSG. “It combines next-generation efficiency with best-in-platform cargo capacity, crew amenities, and efficiency. It represents an opportunity for Boeing 757 operators to modernize their fleet, offering, for example, a 13 percent improvement in fuel efficiency over a Boeing 757-200 series freighter. Additionally, switching to the A321-200PCF allows operators of the Boeing 737-800 to expand their air cargo capacity to meet additional market demand.”

CAM’s first A321-200PCF conversions are under LOI to Malaysia-based Raya Airways, which provides air cargo service to more than 10 locations across the Asia-Pacific region.

Follow this site here.

Air Transport Services Group commitment to 29 Airbus A330P2F aircraft....

 Air Transport Services Group, Inc. (ATSG), the world’s largest lessor of freighter aircraft, has committed to a total of 29 Airbus A330 Passenger-to-Freighter (P2F) conversion slots with Elbe Flugzeugwerke (EFW), center of excellence for Airbus freighter conversions and a joint venture between ST Engineering and Airbus.

The commitment of 29 A330P2F reflects a strategic step by ATSG to diversify its existing in-service fleet of 117 aircraft with the addition of next generation wide-body freighters.

“The A330-300 passenger-to-freighter conversion is a natural next step for ATSG as it is an excellent complement to the Boeing 767-300 medium wide-body freighter, which has long been the freighter of choice for the e-commerce air cargo market,” stated Mike Berger, chief commercial officer of ATSG. “The availability of feedstock combined with impressive cargo capacity make the A330 a very attractive option for conversion and will enable ATSG to continue to meet the demands for full-capacity freighters long into the future. The customer response to the news that we will have A330-300 freighters available for lease has been exceptionally strong, and we already have customer deposits toward future leases for half of these 29 converted freighters.”

A330P2F conversions for ATSG will be performed from mid-2023 through 2027 mainly at EFW’s facility in Dresden, Germany

More than $560,000 raised for charities by ATSG

Air Transport Services Group, a leading provider of aircraft leasing and air cargo transportation, announced today that more than $560,000 was raised for various charitable causes during 2021.

In addition to funds donated through corporate philanthropy, ATSG held its annual charity campaign for individuals to donate directly in support of organizations such as United Way, American Cancer Society, American Diabetes Association, American Heart Association, American Red Cross, ATSG Cares, and Wounded Warrior Project. This critical effort delivers financial support to charities that are important to the employees of ATSG companies. This year’s employee campaign increased in overall funds donated using the theme “ATSG-Giving Wings to Hope.”

“I am always inspired by the extensive charitable and philanthropic work in which so many of our employees engage,” said Rich Corrado, president and chief executive officer of ATSG. “This year in particular saw non-profit social services in communities throughout our network stretched to the limit, and our employees stepped up to the challenge by increasing their contribution to record levels. ATSG supports and fosters this spirit of giving because supporting others is an integral part of our culture.”

ATSG historically impacts change in the markets in which it operates by supporting programs serving individuals in the areas of school readiness, youth development, veteran engagement, and homelessness. In 2021 in response to the global pandemic, the company focused on providing vaccination opportunities for residents in the rural area surrounding its corporate location. ATSG strives to be a conscientious citizen in the communities it serves around the globe. 

More top stories you might be interested in.....

Follow this site here.

ATSG Announces New Presidents of Two Subsidiaries

Air Transport Services Group has announced the appointment of new presidents for two of its subsidiaries.

Todd France, pictured left, president of ATSG’s aircraft maintenance subsidiary, Airborne Maintenance & Engineering Services, will become president of ATSG’s aircraft leasing subsidiary, Cargo Aircraft Management, succeeding Brady Templeton, who will retire in April 2022.

Mark Snook, pictured below, general manager of Airborne’s Wilmington facilities and line stations, will replace France as Airborne’s president.

France has been president of Airborne since February 2020, having previously served as the company’s General Manager, Vice President of Business Development, Director of Business Development, and Director of Business Operations. Before joining Airborne, France held a series of management positions at ABX Air. He received a bachelor's degree in business administration from California State University, Fresno.

“Todd knows our business inside and out, and he has a proven track record of effective leadership,” said ATSG President and CEO Rich Corrado. “I am confident that he has what it takes to ensure CAM’s continued success.”

Snook joined Airborne in June 2020. His 37-year career in aviation has included management roles with TIMCO/HAECO Americas and Evergreen Air Center. He is a veteran of the U.S. Marine Corps.

“Mark’s wealth of experience in the aircraft maintenance, repair, and overhaul industry make him the right choice to lead Airborne,” Corrado said.

ATSG Reports Record Third Quarter 2021 Results

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 ended September 30, 2021.

ATSG's third-quarter 2021 results, as compared with the third quarter of 2020 include:

Record customer revenues $466.0 million, up $61.8 million, or 15 percent

GAAP EPS (basic) from Continuing Operations $0.85, vs. loss of $0.10, on pretax earnings of $81.2 million

Adjusted EPS* $0.60, up $0.19 or 46 percent

Record Adjusted EBITDA* $153.0 million, up $27.5 million or 22 percent

2021 Adjusted EBITDA Outlook increased to at least $535 million

Rich Corrado, president and chief executive officer of ATSG, said, "The revenue growth we achieved in the third quarter added to the accelerating pace we saw in the second, as our aircraft leasing and airline businesses delivered sharply improved results versus a year ago. We continue to book and complete orders for freighter leases, and purchase more feedstock aircraft to meet strong lease demand over the next several years. While the pandemic continues to affect our commercial passenger and combi operations, we are proud that our passenger airline Omni Air was able to play a significant role in transporting Afghanistan evacuees during the quarter.”

3Q Financial Highlights

ATSG subsidiary signs multi-year deal with United Airlines.

Airborne Maintenance & Engineering Services, a wholly-owned subsidiary of Air Transport Services Group Inc confirmed this week that it has signed a multi-year agreement to provide additional heavy maintenance capacity for United Airlines. This agreement supports Airborne’s continued facility and personnel growth.

Under the terms of the agreement, Airborne will provide heavy maintenance support for United’s Boeing 767 wide-body fleet and the airline’s Boeing 737, Boeing 757 and Airbus A320 narrow-body fleets. The work will be performed at Airborne’s maintenance, repair and overhaul (MRO) facilities in Wilmington, Ohio and Tampa, Fla.

Airborne President Todd France stated, “Our team is elated that United Airlines continues to recognize the value of our heavy maintenance services, including our flexibility to meet United’s evolving needs over the last year. We look forward to continuing to provide reliable on-time maintenance of their aircraft over the next several years.”

The agreement brings this portion of United’s maintenance work to Airborne from other MROs, and is expected to fill three heavy maintenance lines in Wilmington and four heavy maintenance lines in Tampa.

More top stories you might be interested in.....

Follow this site here.

ATSG Subsidiary PEMCO Delivers Second Boeing 737-700 FlexCombi

The second Boeing 737-700 FlexCombi™ arrived in Bahrain on August 29, 2021. (Photo: Business Wire)

Air Transport Services Group, Inc subsidiary PEMCO Conversions has delivered a second Passenger-to-FlexCombi™ converted aircraft to Bahrain-based Chisholm Enterprises, an internationally recognized provider of tailored aviation and business solutions in the Middle East. Chisholm subsidiary Texel Air, a non-scheduled cargo airline, will operate the Boeing 737-700FC (FlexCombi™) from Bahrain International Airport.

“We have shared a very successful history with PEMCO Conversions,” said John Chisholm, chairman and owner of Chisholm Enterprises, “having received and deployed the first B737-700 FlexCombi™ in August 2020, as well as four previous B737-300 converted freighters.”

The PEMCO B737-700FC currently offers three configurations: a 24-seat cabin plus a 2,640-cubic-foot cargo hold for up to 30,000 pounds of payload in six pallet positions; a 12-seat cabin plus a 3,005-cubic-foot cargo hold for up to 35,000 pounds of payload in seven pallet positions; or full-freighter mode consisting of a 3,370-cubic-foot cargo hold for up to 40,000 pounds of payload in eight pallet positions. The available positions will accommodate 88-inch by 125-inch or 88-inch by 108-inch pallets, with the eighth position accommodating a slightly reduced height pallet in full cargo mode.

Omni Air part of U.S. evacuation operation

Air Transport Services Group has confirmed that its subsidiary Omni Air International has been contracted under Stage I of the Civil Reserve Air Fleet (CRAF) programme to support the U.S. military’s efforts in Afghanistan.

Omni is prepared to provide three (3) Boeing 777-200 passenger aircraft to further assist in the ongoing operation. Omni is the largest provider of passenger charter service to the Department of Defense and other government agencies. They are proud to continue this history of service to the U.S. government to help repatriate U.S. citizens and transport refugees from Afghanistan.

ATSG and the company’s three airline subsidiaries have been providing services to the Department of Defense since the 1990s. Omni has provided airlift services to assist in personnel movement and humanitarian efforts around the globe and will continue this work as part of the CRAF program to augment the military’s own capability.

More top stories you might be interested in.....

Follow this site here.

ATSG Reports Second Quarter 2021 Results

Air Transport Services Group,  the leading provider of medium wide-body aircraft leasing, contracted air transportation, and related services, today reported consolidated financial results for the quarter ended June 30, 2021.

ATSG's second-quarter 2021 results, as compared with the second quarter of 2020 include:

Customer revenues increased $32.1 million, or 8 percent, to $409.9 million.

Second-quarter aircraft leasing and ground services revenues increased substantially from a year ago, while airline services revenues decreased, largely due to a surge in pandemic-related charter operations last year. Aircraft leasing and related revenues from external customers for the quarter increased $16.7 million from seventeen more leases of Boeing 767 freighters since June 2020, including five in the second quarter this year.

GAAP Earnings from Continuing Operations were $79.9 million, or $1.17 per share basic, versus a loss of $105.2 million, or $1.78 per share basic, for the same period last year.

The re-measurements of financial instrument values, including warrants to purchase ATSG shares, increased ATSG's second-quarter after-tax earnings by $27.6 million in 2021 and reduced them by $107.6 million in 2020. Warrant effects in this year's quarter stemmed primarily from a decrease in the traded value of ATSG shares. Government grants intended to mitigate pandemic effects on ATSG's passenger airline operations added $29.5 million to ATSG's second-quarter 2021 net income, compared with $7.6 million a year ago. Results for the second quarter also included $5.0 million in after-tax debt restructuring costs in 2021, and a $30.2 million after-tax impairment charge in 2020, primarily for four Boeing 757 freighters retired from service.

Adjusted Earnings from Continuing Operations (non-GAAP) were $28.1 million, versus $32.5 million a year ago. Adjusted Earnings Per Share (non-GAAP) were $0.35 diluted, down $0.09.

Adjusted Earnings from Continuing Operations and Adjusted EPS exclude the above-mentioned GAAP items and other elements from GAAP results that differ distinctly in predictability among periods or are not closely related to operations. Adjusted EPS for both periods are based on share counts that reflect Amazon's May 2021 exercise of a portion of its ATSG warrants.

Adjusted EBITDA from Continuing Operations (non-GAAP) increased $2.2 million to $127.8 million vs the prior-year quarter and by $22.2 million vs the first quarter of 2021.

ATSG’s airlines, even excluding the benefit of pandemic relief grants, generated positive cash returns for the quarter, as strong growth in e-commerce-driven cargo operations offset reductions in passenger flying and increased operating expenses as a result of the pandemic.

Adjusted Earnings per Share, Adjusted Earnings from Continuing Operations and Adjusted EBITDA from Continuing Operations are non-GAAP financial measures and are defined in the non-GAAP reconciliation tables at the end of this release.

Dan Orcutt appointed president of Omni Air International

Photo Business Wire

Air Transport Services Group, confirmed this week that Dan Orcutt has been appointed as president of the group's passenger airline  Omni Air International with immediate effect.

Orcutt has been the chief operating officer of Omni since 2017. He has been the company’s FAA Accountable Executive with responsibility and authority for all matters relating to flight operations, maintenance, system operations control, technology, safety, security, and travel. He is also a current and qualified Boeing 777 Captain.

Prior to joining Omni, Orcutt served 26 years active duty in the US Air Force, retiring as a Brigadier General in November 2017. Along the way, he served as a White House Fellow at NASA Headquarters, in the strategy division of two Air Operations Centers, and flew in numerous named Operations, most recently as a flying wing commander in combat over Iraq and Syria from 2015-2016. As the Vice Commander of 1st Air Force, he assisted the commander in organizing, equipping, and operating air defense forces in support of Northern Command and providing defense support to civil authorities during natural disasters.

Orcutt is a distinguished graduate of the US Naval Academy and has three master’s degrees in Aerospace Management, National Security Strategy, and National Resource Strategy. He has served on the Board of Governors for the Civil Air Patrol and participates in various volunteer community service programs.

More top stories you might be interested in.....

Follow this site here.

ATSG Accelerates A321 Strategy, Acquires Feedstock for Conversion and Lease

Air Transport Services Group, announced today that its Cargo Aircraft Management (CAM) leasing business has committed to purchase its first two Airbus A321-200 passenger aircraft, one this year and a second in the first quarter of 2022.

Freighter conversion of the first aircraft will begin in the fourth quarter of 2021 with its redelivery to a CAM dry lease customer projected to occur in the second quarter of 2022. The second aircraft will begin freighter conversion in the second quarter of 2022 with redelivery projected during the fourth quarter of 2022.

Both aircraft will undergo passenger-to-freighter conversion at ATSG’s PEMCO Conversions facilities in Tampa, Fla. Earlier this month, PEMCO Conversions inducted its first A321-200 for conversion. The engineering design for passenger-to-freighter conversion was approved by the FAA in April and is owned by 321 Precision Conversions, a joint venture of ATSG and Precision Aircraft Solutions.

Omni Air International Unveils Premium Service Tier

Omni Air International, a wholly-owned subsidiary of Air Transport Services Group, has this week unveiled “Omni Class,” a new premium travel class billed as “180 degrees of 360 luxury,” a reference to its lie-flat seating options and top-tier amenities.

“Omni Class is the most significant advancement in passenger comfort in our 28-year history,” said Jeff Crippen, president and chief executive officer of Omni. “Continually reinvesting in our fleet through exceptional passenger experience upgrades like this is why Omni remains an industry leader.”

The Omni Class cabin configuration on the Boeing 767 offers a preferred two-one-two-across layout, providing every passenger with a greater degree of privacy and service than the airline’s other travel classes.

“We take pride in delivering the highest quality service to our customers,” said Robert Jared, vice president of business planning and strategy. “With Omni Class, we have not only enhanced the appointment of our cabins with the latest entertainment options, LED mood lighting, and powered seating that transforms into a 180-degree full-flat bed at the touch of a button, but also our exceptional crews have elevated the travel experience through an unmatched level of friendly and professional onboard service.”

Four Boeing 767-300 converted freighters for DHL

Air Transport Services Group's subsidiary Cargo Aircraft Management has committed to provide four additional Boeing 767-300 converted freighters to DHL Network Operations (USA), Inc. under the terms of stand-alone dry lease agreements. The leases are each for a term of seven years. Three of the four are to be delivered during the second half of 2021, with the fourth lease delivery in early 2022.

The leased freighters will bring additional support to the DHL Express global network, with the four Boeing 767 aircraft extending the longstanding relationship between DHL and ATSG. Once these additional four aircraft start flying, DHL Express will have 17 Boeing 767 aircraft under lease from CAM in their global network.

“The shipment volume growth that we continue experiencing requires the expansion of our global aviation network,” said Rob Hyslop, executive vice president, global aviation for DHL Express. “We are pleased to further our relationship with ATSG. The freighter market is very competitive right now, so securing this additional capacity is critical to meet customer demand.”

“We are delighted to strengthen our eighteen-year relationship with DHL,” said Mike Berger, chief commercial officer of ATSG. “The demand for our 767 medium-widebody converted freighter aircraft remains very strong due to the continued expansion of express and e-commerce markets around the globe. We are proud to be one of the companies enabling the further expansion of e-commerce and m-commerce around the world.”

More top stories you might be interested in.....

Follow this site here.

Airborne Maintenance & Engineering Services Completes Renovation and Expansion

Pictured above are (left to right) ATSG Chief Operating Officer Ed Koharik, ATSG Chief Commercial Officer Mike Berger, Airborne President Todd France, and ATSG Chairman of the Board Joe Hete. (Photo: Business Wire)

Airborne Maintenance & Engineering Services, Inc., a wholly-owned subsidiary of Air Transport Services Group, Inc. announced the completion of a renovation and expansion of its Component Repair/Overhaul (CRO) and Manufacturing facility. The project took 17 weeks to complete.

“This investment demonstrates Airborne’s continued drive to provide the most efficient, state-of-the-art repair services,” said Todd France, president of Airborne Maintenance & Engineering Services, “and aligns with our commitment to provide unsurpassed customer service.”

During the renovation, Airborne’s partnership with the University of Akron advanced into Phase II of furthering Supersonic Particle Deposition (SPD) research, commonly known as “cold spray technology.” This collaboration, established in 2015, is designed to drive economic growth through advanced manufacturing in the State of Ohio.

Third Boeing 767 Freighter delivered to Raya Airways of Malaysia by ATSG

Air Transport Services Group, has confirmed the delivery by its Cargo Aircraft Management (CAM) subsidiary of a Boeing 767-200 converted freighter to Raya Airways of Malaysia under a five-year lease. This is the third Boeing 767-200 freighter CAM has leased to Raya Airways.

As the global leader in 767 converted freighter dry leasing, ATSG provides dry leasing customers the opportunity to cost-effectively grow capacity to meet market demands.

“The Boeing 767 converted freighter is the ideal aircraft for our network,” said Mohamad Najib Bin Ishak, managing director of Raya Airways. “We are very proud of the continued growth we have been able to achieve with it thanks to the ATSG team.”

Raya Airways, a Malaysian scheduled all-cargo airline, specializes in express freight and air freighter charters serving more than 10 locations in its domestic, Southeast Asian, and North Asian network.

“ATSG is happy to be a part of Raya’s success story,” said Mike Berger, chief commercial officer of ATSG. “We look forward to extending our relationship further as Raya expands in the Asia-Pacific market.”

More top stories you might be interested in.....

New website for Airborne Training Services

Airborne Training Services, the airline pilot training subsidiary of Air Transport Services Group, Inc. (Nasdaq: ATSG), has launched its newly redesigned website at www.airbornets.com. The new site features a streamlined design with information about their class offerings and training equipment.

The new website provides visitors with an overview of the many offerings of the Airborne Training Services team, including Airline Transport Pilot Certification Training Program (ATP-CTP) training, door training, and access to FAA-certified Level C Boeing 767 and Boeing 757 full-flight simulators. The company provides training under a Part 142 certificate from the U.S. Federal Aviation Administration.

Brand tidy up for for ATSG

Air Transport Services Group, Inc. has launched a brand tidy up, or a special realignment to unify the company’s spectrum of aviation businesses.

This brand transition represents ATSG’s pioneering business strategy and reflects its 360-degree promise to help customers rise beyond their challenges and grow in their success. As the largest lessor of freighter aircraft serving e-commerce and express global markets, ATSG’s brand promise is to leverage aircraft leasing with customized bundles of aviation services to help its customers compete anywhere in the world. This realignment welds the ATSG companies into a resilient market leader built on the success of the A+CMI (Aircraft lease plus Crew, Maintenance and Insurance support) model it originated more than a decade ago.

“Through our commitment to the e-commerce market, we realize what the strength of a brand can mean to both customers and employees,” said President and CEO Rich Corrado. “This new branding initiative will more clearly unite the core of our business model, which is aircraft leasing, with the services that make us unique in the sector, underscoring our leadership position.”

ATSG Reports 2020 Results

Air Transport Services Group, Inc, the leading provider of medium wide-body aircraft leasing, contracted air transportation and related services, this week reported consolidated financial results for the quarter and year ended December 31, 2020.

ATSG's fourth quarter 2020 results, as compared with the fourth quarter of 2019 include:

    Customer revenues down $4.0 million to $399.4 million, and up $118.4 million to $1.57 billion for the year.

Fourth quarter ACMI Services revenues were down $17.9 million due primarily to the effects of the pandemic on passenger operations for commercial customers and on combi aircraft flying for the U.S. Military. Aircraft leasing revenues for the quarter increased $9.3 million as a result of record deployments of leased Boeing 767s during 2020.

    GAAP Earnings from Continuing Operations were $2.3 million, or $0.04 per share basic, versus a loss of $41.1 million, or $0.70 per share. 2020 GAAP earnings were $25.1 million, or $0.42 per share basic, versus $60.0 million, or $1.02 per share in 2019.

The unrealized effect of the quarterly re-measurement of warrant liability values decreased ATSG's after-tax earnings by $37.7 million ($0.51 per share) and $81.8 million ($1.04 per share), respectively, for the fourth quarter and year ended December 31, 2020. Warrant losses for 2020 were a result of an increase in the probabilities of additional warrants related to customer leases and increases in the traded value of ATSG shares during the quarter and year. Payroll expense were partially offset by federal CARES Act grant proceeds intended to mitigate pandemic effects at certain ATSG businesses.