Page 1

ATSG Reports Record Third Quarter 2021 Results Increases Adjusted EBITDA Guidance ; Strong Midsize Freighter Demand Continues WILMINGTON , OH , November 4 , 2021 - Air Transport Services Group , Inc. ( Nasdaq : ATSG ) , the leading provider of medium wide - body aircraft leasing , contracted air transportation , and related services , today reported consolidated financial results for the quarter ended September 30 , 2021 . ATSG's third quarter 2021 results , as compared with the third quarter of 2020 include : ● Adjusted EPS * $ 0.60 , up $ 0.19 or 46 percent Record Adjusted EBITDA * $ 153.0 million , up $ 27.5 million or 22 percent 2021 Adjusted EBITDA Outlook increased to at least $ 535 million 3Q Financial Highlights ● Record customer revenues $ 466.0 million , up $ 61.8 million , or 15 percent GAAP EPS ( basic ) from Continuing Operations $ 0.85 , vs. loss of $ 0.10 , on pretax earnings of $ 81.2 million ● ● ATSG Air Transport Services Group , Inc. ● ● Aircraft leasing and related revenues from external customers increased $ 19.7 million , or 38 percent , from thirteen more leases of Boeing 767 freighters than at the end of the third quarter of 2020 . Cash flows from operating activities were $ 429.2 million for the first nine months of 2021 . ATSG continues to generate strong cash flows from its combined businesses while expanding its aircraft fleet and reducing its debt obligations . Nine - months 2021 capital spending was $ 428.1 million , up 9 percent . Adjusted free cash flow * totaled $ 279.7 million for the first nine months of 2021 after deducting sustaining capital expenditures ( primarily airframe and engine maintenance expenditures ) . Of that amount , ATSG spent $ 278.6 million to grow its fleet through the purchase of passenger aircraft and their conversion into freighters . Adjusted EPS of $ 0.60 excludes , among other items : $ 0.06 gain from re - measurements of financial instrument values in 2021 , including warrants to purchase ATSG shares , vs. $ 0.73 in the prior - year quarter . Government grants of $ 0.30 , compared with $ 0.28 a year ago . The grants are intended to mitigate pandemic effects on ATSG's passenger airline operations . ● * Adjusted Earnings per Share , Adjusted EBITDA and Adjusted Free Cash Flow are non - GAAP financial measures and are defined and reconciled to GAAP measures at the end of this release