ATSG invests in more B767 conversions as Q3 profits increase
05 / 11 / 2021
Freighter lessor and operator ATSG has ordered the conversion of four aircraft to 767-300 Boeing Converted Freighters (BCF) as profits continued to rise in the third quarter.
During the third quarter, the company reported a revenue increase of 15.3% year on year to $465.9m, adjusted ebitda increased 21.9% against last year to $153m and net profits stood at $64.7m compared with a $5.6m loss last year.
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.”
Corrado noted that demand for express-package air transport is expected to be at record levels throughout the peak holiday season, in part due to logistics network constraints.
“We are trying to assist customers with additional ACMI and charter services where possible, and expect all of our available aircraft to be deployed,” he said.
“Looking beyond 2021,” Corrado added, “ATSG’s business model perfectly positions us to enable the growth in e-commerce expedited shipping, continue to expand our 767 freighter lease deployments, and add new freighter lease options for customers, including the Airbus A321 and A330 platforms.”
New freighter conversions
This week, the company also announced it had placed an order with Boeing for the conversion of four B767-300 aircraft – the first time the company has utilised Boeing.
The first aircraft is to be inducted in the third quarter next year.
“Our continued confidence in the 767-300 platform, now coupled with the services and support of the OEM, reinforces our commitment to deliver best-in-class reliable services to our customers,” said Mike Berger, chief commercial officer of ATSG.
ATSG operates a fleet of 106 Boeing aircraft, including more than 90 767 converted freighters.
