ATSG - Amazon to Rent 10 Boeing 767-300 Freighters in Fleet Upgrade | Benzinga
ATSG announced late Monday that it will begin flying the Boeing 767-300 cargo jets for Amazon's logistics network this summer, with the potential to add another 10 aircraft, under a five-year contract that bundles aircraft and transportation services. The agreement also extends the existing flying contract, which runs until March 2026, for three more years and includes the award to Amazon of an additional 2.9 million warrants to purchase ATSG shares.
By the end of the year, ATSG said it expects to operate 50 of the medium widebody freighters on Amazon's behalf.
Amazon already owns 19.5% of the Wilmington, Ohio-based aircraft leasing and aviation services company after exercising warrants in 2021. ATSG has been one of Amazon's primary air transportation providers ever since the e-commerce giant launched its in-house cargo airline in 2016. ATSG said it also agreed to give Amazon more time to exercise vested warrants for 21.8 million shares previously issued to Amazon, as well as for unvested warrants for 2.9 million shares.
The new Amazon deal boosted ATSG's full-year outlook for adjusted core operating activities by $10 million, to $516 million, from the figure presented in February. The projection includes costs associated with bringing the converted freighters into service.
Amazon's decision is a boon for airline subsidiary ABX Air, which will hire more than 50 pilots to support the contract after several years in Amazon's doghouse because the pilots union conducted an unannounced strike on the eve of Black Friday and essentially shut down Amazon's delivery network for more than a day. The Airline Professionals Association, which is under the ...