Air Transport Services Group (ATSG) says it will sublease ten additional B767Fs from Amazon.com to be operated by its ABX Air (GB, Wilmington Air Park) subsidiary, starting in June 2024, the companies announced on May 6.

The agreement, which includes options for ten more B767Fs in the future, will run through May 6, 2029, and may be extended by both parties for a further five years, subject to mutual agreement. No information on the airframes registrations or serial numbers were disclosed.

ABX Air will start receiving and operating the first of those ten planes next month, with the remainder due until November 2024. The carrier will hire 50 more pilots as a result of this expanded deal with Amazon. The composition of the flying with these new aircraft will be very similar to what it has with Amazon at the moment, in which there is a minimum of 200 block hours per tail per month, ATSG's management explained during a first-quarter investor call.

“These additional aircraft will allow us to leverage our existing infrastructure and capabilities for expanded operating revenues,” said Joe Hete, chairman and chief executive of ATSG.

Last year, the company was unclear on whether Amazon would ramp-up or reduce its business with ATSG.

ATSG subsidiary Cargo Aircraft Management currently leases thirty B767 converted freighters to Amazon, along with an additional 11 freighters that Amazon has provided.

ATSG closed the quarter with a fleet of 161 jets, including 142 freighters and 19 passenger planes. The amended Amazon agreement is expected to increase adjusted EBITDA for 2024 by USD10 million to USD516 million.

The ch-aviation fleets module shows that ABX Air operates five B767-200(SF)s for Amazon, while ATI - Air Transport International (8C, Wilmington Air Park) operates two B767-200(SF)s, thirty-nine B767-300ER(BDSF)s, and three B767-300ER(BCF)s for Amazon. Of this total, two freighters are owned by Titan Aviation Holdings, and thirty-eight by Cargo Aircraft Management (eight are currently under maintenance). Another ATSG subsidiary carrier, Omni Air International (OY, Tulsa International), does not operate flights for Amazon.

Finally, both parties also agreed to extend the exercise period for vested warrants for 21.8 million shares ATSG previously issued to Amazon, amend their vesting conditions, and extend the exercise period for unvested existing warrants for 2.9 million shares, while ATSG issued new warrants for up to 2.9 million additional shares to the e-commerce giant. They entered into their original agreement in 2016.