ATSG scales back 767-300 freighter conversions for 2024

Joe Hete, chief executive, ATSG. Photo: ATSG

Air Transport Services Group (ATSG) is halting any additional 767-300 freighter conversions next year due to the soft air cargo demand seen this year.

In the lessor’s third quarter results conference call on November 7, chief executive Joe Hete said: “We are introducing no additional 767-300s for conversion beyond the seven currently in process. As I’ve said in the past, we always have the flexibility to not convert some of the aircraft we own until market conditions improve.”

Hete added that in 2024 there are planned “lease deployments of 14 converted freighters, including six 767-300s, five A321s and three A330s.”

In ATSG’s third quarter press release on November 6, the company stated that twenty aircraft are currently in or awaiting conversion to freighters within its Cargo Aircraft Management leasing arm and this included 13 767-300s.

Speaking about the decision to scale back conversion of  767-300s, Paul Chase, chief commercial officer, said that ATSG had observed weak international demand.

“I mean, we’re filling the orders this year using our existing pipeline. But in the future, in 2024, that pipeline has slowed. So we’re keeping an eye on that. And that’s one of the reasons that the business has decided to pull back on the CapEx. So with most of the deliveries that we expected to go internationally, sure, we’re seeing some weakness there.”

ATSG is the world’s largest lessor of converted Boeing 767 freighter aircraft through CAM. 

Quint Turner, chief financial officer, noted that pretax earnings within the company’s aircraft leasing segment, CAM, were $23m, down $14m year on year.

Mixed picture for ATSG

 

 

Share this story

Related Topics

Latest business news

Warning of weeks of delays to cargo operations following global IT failure

The IT failure that today grounded airline and airport operations around the world could take weeks to recover from, according…

Read More

Share this story

E-commerce: Just what the air cargo market ordered

Tim van Leeuwen, part of Rotate Consulting, provides his team’s observations on the size and impact of e-commerce on the…

Read More

Share this story

DANX Carousel expands round-the-clock services with Logik deal

Time-critical logistics group DANX Carousel has acquired UK-based Logik Logistics International to expand its services and its network across Europe….

Read More

Share this story

Rebecca Jeffrey

Rebecca Jeffrey
New to aviation journalism, I joined Air Cargo News in late 2021 as deputy editor. I previously worked for Mercator Media’s six maritime sector magazines as a reporter, heading up news for Port Strategy. Prior to this, I was editor for Recruitment International (now TALiNT International). Contact me on: [email protected]