10th Amazon 767F begins operations with ATSG
11 / 11 / 2024
Source: RDNichols / Shutterstock.com
Air Transport Services Group (ATSG) is now operating all 10 of the additional Boeing 767 freighters that it previously said it would take on for Amazon.
The freighter lessor and operator announced in May that it would operate the additional 10 767 freighters for Amazon over a five year period.
The operating deal, which runs until May 2029, also included the option to extend for an additional five years. Amazon has the opportunity to take extra shares in ATSG as part of the arrangement.
In a release announcing ATSG’s third quarter 2024 results, chief executive Mike Berger said: ” I am delighted to report that the 10th aircraft entered operations this week.”
He noted, however, that third quarter results were affected by start-up costs for the Amazon aircraft.
The aircraft development with Amazon comes as ATSG reported a loss in the third quarter of the year as block hours decreased and costs increased.
The company, which is in the process of being bought by investment firm Stonepeak for $3.1bn, saw revenues decline by 9.9% to 471.3m. Operating income was down 52.9% to $21.7m and the company swung to a net loss of $3.3m compared with a profit of $17.2m last year.
Meanwhile, Amazon recently confirmed that it is now selling cargo capacity on its aircraft to third parties, including ad hoc and charter services.
In addition to its deal with ATSG, Amazon is placing eight additional Boeing 737-800 freighters with US carrier Sun Country Airlines. Delivery of these aircraft is due to be completed in the fourth quarter of 2025.
