ATSG revenues take-off in Q2 thanks to Amazon and Omni deals
06 / 08 / 2019
Freighter operator ATSG has reported increases in revenues and operating income during the second quarter of the year, as it continues to ramp up its flights for Amazon and benefit from the acquisition of Omni Air.
Second-quarter revenues at the lessor increased by 64.3% year on year to $334.5m while operating income for the period was up by 56.8% to $37.5m.
Revenues from Omni International, which ATSG acquired in November 2018, were the largest contributor to the year-on-year revenue gain, the company said.
Joe Hete, president and chief executive of ATSG, said that operating momentum continued during the second quarter, as flight operations for the Department of Defense and Amazon increased.
“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,” Hete said.
“At Amazon’s request, we now expect to deliver them six B767 freighters this year, and the remaining four in 2020.
“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, we have agreed to lease four B767 freighters to United Parcel Service this year, starting in September.”
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.
“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 B767 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 said.