Air Transport Services Group (ATSG) is set to deliver the first converted Airbus A330-300 freighter to Turkey-based ULS Airlines Cargo this month. A source close to the company stated that the second aircraft is scheduled for delivery in April.

ULS Airlines Cargo Fleet Expands

The Airbus A330-300 freighters have a larger capacity than the three A310 converted cargo planes currently operated by ULS Airlines Cargo from Istanbul Airport. ATSG revealed in its fourth-quarter earnings report that it plans to deliver the first four converted Airbus A330-300 freighters to customers this year. With the first two conversions expected to be completed in March, the company aims to diversify its mid-size aircraft portfolio.

Delayed Delivery

According to Cargo Facts, ULS Airlines Cargo was announced as the launch customer of ATSG’s A330 leasing programme in March 2024. However, the integration of the aircraft into the fleet was delayed due to supply chain issues and programme mismanagement. The first of the converted aircraft, handled by Airbus’ aftermarket subsidiary Elbe Flugzeugwerke GmbH (EFW), was accepted in October 2023.

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Strengthening the Fleet with New Aircraft

With its stock of used Boeing 767 passenger planes dwindling, ATSG plans to purchase and convert 29 A330s. However, this plan is expected to take longer due to the company’s policy of prioritising cash flow and shareholder returns.

Continued Collaboration with Amazon

ATSG operates 51 mid-size Boeing 767 freighters for Amazon. The addition of 10 Boeing 767-300 freighters to the fleet in 2024 contributed to an increase in airline revenues. Following the end of its partnership with Atlas Air, Amazon’s 10 freighters began being operated by ATSG subsidiary ABX Air.

Financial Performance

ATSG’s fourth-quarter revenue in 2024 remained steady at $517 million. Adjusted earnings from core operations rose by 23% to $162.2 million. By year-end, the company had 91 aircraft leased to external customers. However, rising costs and declines in outsourced airline operations negatively impacted profitability.