ATSG - Air Transport Services Group: Leveraging Strong Air Cargo Demand

• Air Transport produced a very welcome beat on the revenue and EBITDA lines in Q2, with strong block hour growth in cargo and improving trends in passenger/combi services.
• Supported by strong customer demand (including multiyear leasing terms at good rates), management is extending its already ambitious fleet expansion plans, and adding A330s to the mix.
• Air Transport shares haven't gotten that much love from the Street despite the strong relationship with Amazon and ongoing e-commerce growth, but the shares look undervalued below the mid-$30s.

For further details see: