Air Transport Services Group (ATSG) said it expects to complete the passenger-to-freighter conversion and delivery of 14 Boeing 767-300 freighter aircraft in 2023 and 16 in 2024, most of which will be leased to customers outside the US.
The company also aims to finish the passenger-to-freighter conversion and deliver "at least six" Airbus A321-200 cargo aircraft to fulfil lease orders from customers in Europe and Asia, ahead of a "similar number" of Airbus conversions and deliveries in 2024. However, deliveries and dry leases await regulatory review by the European Union Aviation Safety Agency (EASA).
ATSG also expects to begin passenger-to-freighter conversion of a potential leased fleet of thirty Airbus A330-300s and expects to begin leasing the freighters in 2024 after receiving customer commitments for around 20 of the aircraft.
It will continue into 2024 with four of twelve Boeing 767-200 freighters leased to Amazon and operated by ATSG’s cargo airlines, including Cargo Aircraft Management (CAM). Leases for the other eight are due to expire between May and September 2023. CAM expects to retire at least three of the eight "due to airframe cycle limitations" and utilise the engines removed to support other 767-200 lease customers.
Rich Corrado, president and CEO of ATSG, said that despite the macroeconomic headwinds, the aircraft lessor expects to report “moderate Adjusted EBITDA growth" in 2023. "The entry into new Airbus platforms along with the significant increase in leasing deliveries will increase our capital expenditures above 2022 levels. But clearly, 2023 will be a transition year for us, due to both a changing mix of leased freighters in service, and changes in flight schedules from customers of our US airlines," said Corrado.
ATSG will report its fourth-quarter 2022 earnings results in late February.