Global Leasing Demand and Strong Customer Relationships Drive Growth Beyond Projections
Air Transport Services Group, Inc. (Nasdaq: ATSG), the leading provider of medium wide-body aircraft leasing, air transportation, and related services, announced that its leasing subsidiary Cargo Aircraft Management (CAM) has delivered a fifth converted Boeing 767-300 freighter to Atlanta-based package delivery giant United Parcel Service, Inc.
The delivery of this aircraft fulfills CAM’s commitment to UPS for five converted Boeing 767-300 freighters and brings ATSG’s total deliveries this year to twelve. Continued strong demand for its converted Boeing 767 freighter aircraft has driven deliveries to record levels for ATSG.
Leases and projected leased 767 aircraft deliveries for 2020 include:
Amazon Air has received five converted Boeing 767-300 freighters from CAM in 2020. CAM announced in June that Amazon had committed to lease eleven more in 2021.
Amerijet International Airlines of Miami, Florida, took delivery of a converted Boeing 767-300 freighter in September 2020. CAM now leases eight Boeing 767 freighters to Amerijet.
Cargojet Airways of Mississauga, Canada, has signed an agreement with CAM for another converted Boeing 767-300 freighter, bringing the total number of aircraft leased to Cargojet to five. Delivery is expected to occur in October 2020.
Northern Air Cargo of Anchorage, Alaska, has signed an agreement to take delivery of their fourth converted Boeing 767-300 freighter from CAM. This delivery is scheduled for November 2020.
In addition to a strong market for newly converted aircraft, ATSG has actively re-deployed its 767 fleet, expanding into new international markets that value it as the leading lessor of medium wide-body 767 aircraft. These include:
Astral Aviation of Nairobi, Kenya, has signed an agreement with CAM for their first converted Boeing 767-200 freighter, which will join their current fleet serving Africa and Europe in October.
Aerotransportes Mas de Carga, S.A. de C.V. (MasAir) of Mexico City, will take delivery of a second CAM-owned aircraft, a converted Boeing 767-200 freighter in October 2020. MasAir also leased a Boeing 767-300 from CAM in July.
"ATSG is finishing 2020 strong, with a record number of 767 deliveries that includes thirteen newly converted 767-300 freighter aircraft, with one being assigned to Air Transport International, plus three other expected redeployments of freighter aircraft by year-end," Mike Berger, chief commercial officer of ATSG commented. "ATSG continues to set service goals very high to meet customer demand, and this trend continues into 2021, for which scheduled deliveries already exceed this year’s total."
ATSG’s fleet expansion during 2020 has been significant, delivering aircraft to nine companies located in five countries. This marks the largest single-year airframe delivery schedule in the history of Air Transport Services Group and lays a strong foundation for 2021.
About Air Transport Services Group, Inc. (ATSG)
ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world's largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, passenger ACMI and charter services, aircraft maintenance services and airport ground services. ATSG's subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Airborne Maintenance and Engineering Services, Inc., including its subsidiary, Pemco World Air Services, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Omni Air International, LLC. For more information, please see www.atsginc.com.
Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. There are several important factors that could cause Air Transport Services Group's ("ATSG's") actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, potential disruptions to our workforce and staffing capability, and the ability of our vendors and third party service providers to maintain customary service levels, arising from the current COVID-19 pandemic and related economic downturn; the cost and timing with respect to which we are able to purchase and modify aircraft to a cargo configuration; our ability to remain in compliance with our commercial arrangements with Amazon and our lenders; and other factors that are contained from time to time in ATSG's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on ATSG's forward-looking statements. These forward-looking statements were based on information, plans, and estimates as of the date of this release. ATSG undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events, or other changes.
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Quint O. Turner, ATSG Inc. Chief Financial Officer