Freighter leasing and operating group, Air Transport Services Group (ATSG), will speed up its delivery of B767-300BDSFs to Amazon at the e-commerce giant’s behest.
In reporting its Q2 results, ATSG says it will deliver an additional B767 freighter this year, bringing the total up to six from the original five scheduled.
“In December 2018, ATSG agreed to lease ten more Boeing 767-300 converted freighters to Amazon, anticipating five deliveries in each of the next two years,” Joe Hete, president and CEO of ATSG says.
“At Amazon’s request, we now expect to deliver them six 767 freighters this year, and the remaining four in 2020,” Hete adds.
The first of those six was delivered in June, the second in early July, and the third is due later this month. At the same time, ATSG has also agreed to lease four B767 freighters to United Parcel Service (UPS) this year, starting in September.
ATSG reports a 64 per cent rise in revenue to USD 334.6 million for the second half of 2019, year-on-year, while operating income for the period was up by 56.8 per cent to USD 37.5 million.
The positive results came not only on the back of its services for Amazon, but as the group fully accrues the benefit of its Omni Air acquisition and also wins more defence-related contracts.
ATSG says revenues from Omni Air International, which ATSG acquired in November 2018, were the largest contributor to the year-on-year revenue gain.
Joe Hete, president and CEO of ATSG, says that ATSG’s operating momentum continued during the second quarter, as flight operations for the Department of Defense and Amazon increased versus prior-year periods.
ATSG now expects a 36 per cent increase in Adjusted EBITDA in the second half versus a year ago, thanks to both increased flight operations and more leased aircraft in service.
Hete added that in both the leasing of converted freighter aircraft and flight and maintenance operations for customers, ATSG is executing according to its plans and on track for a very good 2019.
“We look forward to growth in our operations for the Department of Defense, and in fulfilling signed lease commitments from Amazon and United Parcel Service in 2019 for a total of ten converted Boeing 767 freighters.
“In 2020, we expect to deploy at least 10 more aircraft, four of which are under customer commitments to Amazon and one that we expect to lease to UPS next year,” he adds.