The following is a summary of the Air Transport Services Group, Inc. (ATSG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• ATSG reported Q1 2024 revenues of $486 million, a decrease of $15 million or 20% year-over-year.

• GAAP pre-tax earnings and diluted EPS reported at $12 million and $0.13 respectively, demonstrating a decrease from prior year's figures.

• Adjusted pre-tax earnings dropped to $15 million while adjusted EPS dropped to $0.16.

• Revenues from aircraft leasing witnessed a 7% decrease due to fewer cycles of 767-200 engine and increased interest expense and depreciation.

• The ACMI Services segment reported a pre-tax loss of $3 million.

Business Progress:

• A contract extension for operating 10 additional Boeing 767-300 freighters has been agreed upon with Amazon, which could potentially increase to an additional 10 aircraft beyond 2024.

• Agreement with Amazon extends flying agreement through 2029, with options extending it further to 2034.

• Contract with ABX Air pilots ratified for extension until 2030.

• 4 Converted 767-300 freighters delivered to external customers in the quarter.

• Expectation for 2024: Completion of conversion of 17 aircraft and acquisition of 4 additional feedstock aircraft; start-up of 10 Amazon-provided 767-300 aircraft.

• ATSG is striving to become free cash flow positive by end of 2024 and is forecasting a $516 million guidance excluding other potential leases.

• Emphasis on supporting e-commerce growth, aiming at sustained relations with Amazon and exploring growth opportunities in Asia.

• Pursuing marketing initiatives for A321s and 767 aircraft, with delivery of the first Airbus 330s expected in Q4 2024.

More details: Air Transport Services IR

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