ATSG’s 767F commitment boosts Q2 earnings

[caption id="attachment_414357" align="alignright" width="500"] ABX Air, a subsidiary of ATSG, operates 767-200BDSFs for Amazon. (Photo: ATSG)[/caption] Air Transport Services Group’s ( ATSG ) commitment to and investment in 767 freighters saw the company’s operating income jump by 74% year on year to $32.5 million on an adjusted basis for the second quarter. Total revenue at ATSG’s dry-leasing division, Cargo Aircraft Management ( CAM ), for the quarter was 8% higher than a year ago, attributed mostly to seven 767Fs deployed since June 30, 2019. According to ATSG, as of June 30, 2020, CAM owned eighty-nine aircraft, including fourteen passenger 767-300 in or awaiting conversion into freighter configuration. At the end of the second quarter, CAM was expecting to lease at least twenty newly converted 767-300Fs through 2021, including seventeen “already under firm customer commitment” and three for which lease arrangements are being finalized. Rich Corrado, president and CEO of ATSG, confirmed to Cargo Facts that the seventeen aircraft include fifteen for Amazon and two for UPS . He added that the three remaining aircraft will be for existing customers and that he is “confident” in closing deals for them. Eleven of the fifteen 767-300Fs for Amazon are due to be delivered in 2021, under an agreement between CAM and Amazon announced in June , while the other four are the last of thirty scheduled to be delivered to Amazon by the end of 2020 under previous agreements. In 2020, CAM expects to lease at least twelve 767-300Fs to customers. Cargo Facts estimates that fourteen 767-300Fs could end up being placed by the end of the year. CAM 767-300Fs in 2020 Corrado confirmed that all of these aircraft are under agreement or being finalized, but said some planned allocations are being shifted due to accelerated demand. CAM expects to place two 767-200Fs in the second half of 2020. Cargo Facts believes one of these will be unit 22217, the 767-200BDSF returned by West Atlantic in March earmarked to be leased to Kenya-based Astral Aviation . CAM purchased seven 767-300ER feedstock aircraft during the first half of 2020 for conversion into freighters, and expects to purchase four more in the second half and at least three 767-300 aircraft in 2021. Corrado confirmed to Cargo Facts these fourteen aircraft are all ex-American Airlines frames and are the last ones part of the deal CAM signed with Jetran in 2018 . Meanwhile, ATSG’s ACMI division posted 13% higher YoY revenue for the second quarter, thanks to charter flights by Omni Air to repatriate stranded U.S. citizens and new arrangements with DHL . Total block hours increased by 17% compared to a year ago. ATSG decided during the second quarter to retire four 757-200Fs after an ACMI agreement with DHL expired earlier this year. While one (22812) will continue being flown by subsidiary carrier Air Transport International (ATI) through 2020, the other three (22910, 23687 and 25042) have been put up for sale.

ATSG’s 767F commitment boosts Q2 earnings

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