Air Transport Services Group (ATSG) has seen revenues increase by 21 per cent in first quarter (Q1) of 2016 to $177.4 million.

The aircraft lessor says results are up to 31 March, 2016 and excluding revenues from reimbursed expenses, revenues rose 18 per cent.

This increase included contributions from five more dry leases of Boeing 767 cargo aircraft with external customers, and expanded air network operations for ATSG’s newest customer, Amazon Fulfillment Services (AFS), a subsidiary of Amazon.com.

Pre-tax earnings from continuing operations were $12.1 million, versus $14.5 million in the prior-year period.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from continuing operations increased 11 per cent to $51.3 million, which was a first-quarter record.

ATSG president and chief executive officer, Joe Here says: “Under its key multi-year agreements with global leaders DHL and Amazon, and with an increasing number of our freighters deployed under long-term dry leases, ATSG is on a sustainable, diversified growth trajectory, reflected in a 21 per cent increase in revenue and our highest adjusted EBITDA for a first quarter.

“Margins were affected in part by revenue/expense timing factors, including those associated with scheduled maintenance services, fleet transition and costs to spool up resources to serve Amazon.

“We project margins to improve in the second half as we complete more dry leases and deploy additional freighters into the Amazon network.”