Air Transport Services Group (ATSG) has now deployed all 10 Boeing 767 freighters under its agreement with Amazon, according to its latest quarterly report. ATSG had announced in May that it would phase in these additional freighters over five years, with an option for Amazon to extend the deal through May 2029. This arrangement also grants Amazon the opportunity to increase its ownership in ATSG.
Chief Executive Mike Berger celebrated the milestone, stating, “I am delighted to report that the 10th aircraft entered operations this week.” However, he also noted that third-quarter earnings were affected by the startup expenses associated with these aircraft. ATSG’s partnership with Amazon comes at a time when the company is facing financial challenges, including a 9.9% year-over-year revenue decline to $471.3 million. Operating income fell by 52.9% to $21.7 million, and the company recorded a net loss of $3.3 million, a sharp drop from a $17.2 million profit in the same quarter last year. ATSG attributes these results partly to decreased block hours and higher operating costs.
This expansion with Amazon aligns with the e-commerce giant’s own strategies. Recently, Amazon began selling spare cargo capacity on its aircraft to third-party customers, offering ad hoc and charter services. In a separate move, Amazon will place eight additional Boeing 737-800 freighters with Sun Country Airlines, set for delivery by the end of 2025.
Meanwhile, ATSG is in the process of being acquired by the investment firm Stonepeak in a $3.1 billion deal. This acquisition is expected to support ATSG’s growth initiatives and solidify its position in the cargo and logistics sector amid an evolving e-commerce landscape.