Air Transport Services Group

Wall Street sours on ATSG freighter spend during cargo slowdown

Cargo-focused Air Transport Services Group blamed disappointing first-quarter results on slower business at its charter passenger airline Omni Air and warned that persistent inflation, which is driving up costs for maintenance and travel for flight crews shuttling between assignments, would dampen expected profits for the year.

On the positive side, utilization of the cargo fleet actually increased and leasing demand remains high for aircraft scheduled for freighter conversions despite weak...

https://www.freightwaves.com/news/wall-street-sours-on-atsg-freighter-spend-during-cargo-slowdown

ATSG expects 5% dip in usage of cargo aircraft in 2023

Air Transport Services Group, a freighter leasing and airline services company best known for operating dozens of cargo jets for Amazon, said it expects slower growth this year after generating record revenue in 2022, because weaker economic conditions mean there is less need for its aircraft.

It will also be a big year for investment in new aircraft as management bets on the air cargo industry long-term upside, which could increase debt leverage.

The air logistics specialist on Thursday reported...

https://www.freightwaves.com/news/atsg-expects-5-dip-in-usage-of-cargo-aircraft-in-2023

Amazon, DHL reduce US cargo flights as parcel volumes soften

Amazon is reducing the number of aircraft and flights supplied by Air Transport Services Group to fly packages within its air network in response to weaker e-commerce demand and a shift in business to new partner Hawaiian Airlines. 

ATSG, which provides aircraft leasing and outsourced transportation services for cargo customers, on Monday issued an outlook for slower growth in 2023, saying Amazon and DHL Express are reducing flight schedules for their contracted fleets but that demand for leased...

https://www.freightwaves.com/news/amazon-dhl-reduce-us-cargo-flights-as-parcel-volumes-soften

ATSG keeps growing freighter fleet with e-commerce profits

A large white jet with red accents and ABX Air logo on runway with trees and city skyline in background.

Air Transport Services Group, a provider of leased cargo aircraft and outsourced airline operating services, on Thursday reported adjusted pretax income increased 80% in the second quarter to $67 million as express delivery customers continued to demand more aircraft for time-sensitive e-commerce deliveries.

The results came hours after main competitor Atlas Air disclosed a $5.2 billion take-private buyout by three investment funds led by Apollo Global Management.

ATSG (NASDAQ: ATSG), based in...

https://www.freightwaves.com/news/atsg-keeps-growing-freighter-fleet-with-e-commerce-profits

ATSG to lease Airbus freighters to European cargo airline

Sideview of big white jet with red tail and Air Transport International written on the fuselage. Sunny day with blue sky.

Air Transport Services Group, the air cargo industry’s Swiss Army knife, revealed that a Dublin-based contract airline with customers such as Amazon Air and FedEx has ordered five Airbus converted freighters, building on the first-quarter profit contribution of its leasing arm. 

The provider of aircraft leasing and outsourced air transport reported revenue increased 29% to $486 million and adjusted pretax earnings of $64 million, more than triple the amount in 2021, on the strength of a larger...

https://www.freightwaves.com/news/atsg-to-lease-airbus-freighters-to-european-cargo-airline

Boeing to convert more 767 jets to freighters for ATSG

A white Air Transport International plane touches down on runway.

Air Transport Services Group, an air cargo and services conglomerate based in Wilmington, Ohio, said Monday it has reserved four additional production slots with Boeing to convert 767-300 passenger jets into freighters, doubling its existing order with the manufacturer as shipping demand soars.

The company, which recently reported record 2021 results, has been heavily investing in more all-cargo aircraft it can lease and operate for airlines and logistics companies. It now has more than 80...

https://www.freightwaves.com/news/boeing-to-convert-more-767-jets-to-freighters-for-atsg

DHL locks in freighter capacity with ATSG lease extension

A large white cargo jet with ABX Air lettering rolls down runway.

DHL Express has renewed its aircraft operating lease with Air Transport Services Group for six years and added two all-cargo jets for the contractor to fly on its behalf.   

ATSG (NASDAQ: ATSG) said Tuesday it has signed a lease extension with the express carrier’s in-house airline for five Boeing 767-300 aircraft through April 2028, as well as a separate contract under which subsidiary ABX Air will provide crew, maintenance and insurance (CMI) to operate the aircraft. 

DHL also expanded its CMI...

https://www.freightwaves.com/news/dhl-locks-in-freighter-capacity-with-atsg-lease-extension

US all-cargo carriers force Saudia retreat on flying privileges

A large Saudia Cargo jet on the runway. White plane with green tail and Arabic lettering.

Saudi Arabian flag carrier Saudia has asked the U.S. Department of Transportation to ignore its request for new cargo traffic rights while it consults with the government about granting similar market access to U.S. all-cargo carriers, a key sticking point for securing approval.

Atlas Air (NASDAQ: AAWW), Air Transport Services Group, FedEx Express (NYSE: FDX) and UPS (NYSE: UPS) last week strongly objected to Saudi Arabian Airlines’ exemption request to operate freighter aircraft between...

https://www.freightwaves.com/news/us-all-cargo-carriers-force-saudia-retreat-on-flying-privileges

Check Call: Trust the experts

Hot Takes

Image: SONAR Market Dashboard

TRAC us out! Yeah … that was a bad pun. Moving on. FreightWaves has formed the Trusted Rate Assessment Consortium (TRAC), which provides the freshest view of spot rates in the U.S. Fresh rates PLUS SONAR data. I mean, what else could you want?

TRAC is a little different from other spot rate measurements in several ways:

  • Data is collected at the time a load is covered or accepted by the carrier. 
  • There are a minimum of five contributors with no single...

https://www.freightwaves.com/news/check-call-trust-the-experts

Increased flying for Amazon Air helps ATSG to record Q3 revenue

A white jet with the ATI logo flies high into a blue sky.

Air Transport Services Group, a diversified air cargo provider, racked up another win in the third quarter of 2021 with record revenues and pre-tax earnings of $81.2 million compared to $5.6 million a year ago. 

Credit the strong e-commerce demand and an industry shortage of cargo capacity.

The Wilmington, Ohio-based company beat analysts’ consensus expectations Thursday with revenue of $466 million, up 15% from 2020, and adjusted earnings per share of 60 cents, a 46% increase. 

Management raised...

https://www.freightwaves.com/news/increased-flying-for-amazon-air-helps-atsg-to-record-q3-revenue

+ More