1Q

2024

QUARTERLY PRESENTATION

JOE HETE l CHAIRMAN & CEO JOE PAYNE l CLO MIKE BERGER l PRESIDENT QUINT TURNER l CFO

AIR TRANSPORT SERVICES GROUP

SAFEHARBORSTATEMENT

Throughout this presentation, Air Transport Services Group, Inc. ("ATSG") makes "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, as amended (the "Act"). Except for historical information contained herein, the matters discussed in this presentation contain forward-looking statements that involve inherent risks and uncertainties. Such statements are provided under the "safe harbor" protection of the Act. Forward-looking statements include, but are not limited to, statements regarding anticipated operating results, prospects and levels of assets under management, technological developments, economic trends, expected transactions and similar matters. The words "may," "believe," "expect," "anticipate," "target," "goal," "project," "estimate," "guidance," "forecast," "outlook," "will," "continue," "likely," "should," "hope," "seek," "plan," "intend" and variations of such words and similar expressions identify forward-looking statements. Similarly, descriptions of ATSG's objectives, strategies, plans, goals or targets are also forward- looking statements.

Forward-looking statements are susceptible to a number of risks, uncertainties and other factors. While ATSG believes that the assumptions underlying its forward-looking statements are reasonable, investors are cautioned that any of the assumptions could prove to be inaccurate and, accordingly, ATSG's actual results and experiences could differ materially from the anticipated results or other expectations expressed in its forward-looking statements. A number of important factors could cause ATSG's actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to: (i) unplanned changes in the market demand for our assets and services, including the loss of customers or a reduction in the level of services we perform for customers; (ii) our operating airlines' ability to maintain on-time service and control costs; (iii) the cost and timing with respect to which we are able to purchase and modify aircraft to a cargo configuration; (iv) fluctuations in ATSG's traded share price and in interest rates, which may result in mark-to-market charges on certain financial instruments; (v) the number, timing, and scheduled routes of our aircraft deployments to customers; (vi) our ability to remain in compliance with key agreements with customers, lenders and government agencies; (vii) the impact of current supply chain constraints both within and outside the United States, which may be more severe or persist longer than we currently expect; (viii) the impact of the current competitive labor market, which could restrict our ability to fill key positions; (ix) changes in general economic and/or industry-specific conditions, including inflation and regulatory changes; and (x) other uncontrollable factors such as geopolitical tensions or conflicts and human health crises. Other factors that could cause ATSG's actual results to differ materially from those indicated by such forward-looking statements are discussed in "Risk Factors" in Item 1A of ATSG's Form 10-K and are contained from time to time in its other filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q.

Readers should carefully review this presentation and should not place undue reliance on ATSG's forward-looking statements. New risks and uncertainties arise from time to time, and factors that ATSG currently deems immaterial may become material, and it is impossible for ATSG to predict these events or how they may affect it. These forward-looking statements were based only on information, plans and estimates as of the date of this presentation. Except as may be required by applicable law, ATSG undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes. ATSG does not endorse any projections regarding future performance that may be made by third parties.

This presentation also refers to non-GAAP financial measures from continuing operations, including adjusted earnings, adjusted earnings per share, adjusted pretax earnings, adjusted EBITDA, and adjusted free cash flow. Management believes these metrics are useful to investors in assessing ATSG's financial position and results. These non-GAAP measures are not meant to be a substitute for ATSG's GAAP financials. We advise you to refer to the reconciliations to GAAP measures, which are included in the company's 8-K dated 05/06/2024 and accompanying earnings release furnished and dated 05/06/2024.

2

2024

FIRST QUARTER

HIGHLIGHTS

  • Non-GAAPmeasure, please see the company's 8K and accompanying earnings release for GAAP reconciliation furnished 05/06/2024 and dated 05/06/2024

**Non-GAAP measure, please see enclosed GAAP reconciliation

3

Customer

Adjusted

1Q2024

Revenues $486M

FreeCash

Adjusted

Flows**

EBITDA* $127M

Down $15M or 3%

Up 3% to $368M,

Down 8% vs

over 1Q2023

trailing twelve

1Q2023

months

GAAP EPS (diluted)

Adjusted

2024Capex

from Continuing

diluted EPS* of

Guidance of

Operations

$0.16

$410M

$0.13

vs. $0.36 in

vs. $0.25 in 1Q2023

1Q2023

1Q2024

FINANCIALS

($ in millions except per share data)

$486

$501

REVENUE

1Q 2024

1Q 2023

ADJUSTED

$38

PRETAX

E

EARNINGS*

$15

1Q 2024

1Q 2023

ADJUSTED

$0.36

EPS*

$0.16

1Q 2024

1Q 2023

$127

$138

ADJUSTED

EBITDA*

1Q 2024

1Q 2023

PRETAX INCOME BYSEGMENT

CAM ACMI SERVICES

$34

$13

($3) ($2)

CAMACMI

1Q 2024

1Q 2023

1Q 2024

1Q 2023

4

* Non-GAAP measure, see GAAP reconciliation attached. For more information about non-GAAP adjustments, see

the company's 8K and accompanying earnings release furnished 05/06/2024 and dated 05/06/2024.

TRAILINGTWELVEMONTHTREND

ADJUSTEDEBITDA*

($ in millions)

ADJUSTED

$621

$621

$594

$562

$551

EBITDA

ACMI Services

$190

$193

$175

$145

$147

& Other

EBITDA

CAM

$431

$428

$419

$417

$404

EBITDA

TTM ENDING

MAR 2023

JUN 2023

SEP 2023

DEC 2023

MAR 2024

CAM % of TOTAL

69%

69%

71%

74%

73%

1Q 2024 Adjusted EBITDA of $127M, down 8% vs 1Q 2023

1Q 2024 CAM Adjusted EBITDA of $97M, down $13M vs 1Q 2023, driven by elevenfewer 767-200 aircraft in service

In-service fleet increased by four aircraft since March 2023

5

*Non-GAAP measure, see GAAP reconciliation attached. For additional information about non-GAAP adjustments, see

the company's 8K and accompanying earnings release furnished 05/06/2024 and dated 05/06/2024.

TRAILINGTWELVEMONTHTREND

CAPITALEXPENDITURES

($ in millions)

TOTAL

$710

$718

$732

$793

$677

CAPITAL

EXPENDITURES

$200

$219

$205

$208

$196

$505

$532

$574

$510

$481

TTM ENDING MAR 2023

JUN 2023

SEP 2023

DEC 2023

MAR 2024

Cost of planned

SUSTAINING

airframe maintenance,

CAPITAL

engine overhauls,

EXPENDITURES

technology, and other

property and

equipment.

GROWTH

Cost of aircraft

CAPITAL

acquisitions and

EXPENDITURES

freighter modifications.

Twenty-four aircraft in or awaiting conversion on March 31, 2024: thirteen 767-300s, six A321s and five A330s; four 767s are staging for lease

Projected 2024 total capital spend of $410M: $165M for sustaining and $245M for growth

6

TRAILINGTWELVEMONTHTREND

ADJUSTEDFREECASHFLOWS*

($ in millions)

OPERATING CASH FLOWS (GAAP)

SUSTAINING CAPITAL EXPENDITURES

ADJUSTED FREE CASH FLOWS* (NON-GAAP)

$563

$631

$600

$654

$564

$208

$219

$200

$205

$196

$423

$400

$435

$358

$368

Decline in March 2024 trailing 12-month operating cash flow from December 2023 was largely due to a $67M payment in January 2023 of a DoD fuel receivable

TTM ENDING MAR 2023

JUN 2023

SEP 2023

DEC 2023

MAR 2024

7*Adjusted Free Cash Flow is a Non-GAAP measure and equals Operating Cash Flows less Sustaining Capital Expenditures

CONSERVATIVELEVERAGE

CAPITAL STRUCTURE

($ in millions)

Dec 31,

Dec 31,

Mar 31,

2022

2023

2024

Senior Secured Revolver

$620

$730

$685

Unsecured Notes

Convertible Notes, due 2024

259

54

54

Convertible Notes, due 2029

-

400

400

Unsecured Notes Payable

580

580

580

Total Debt Maturity Values

$1,459

$1,764

$1,719

Leverage Ratio (Bank Agreement)

2.22X

3.19X

3.16X

Revolver is SOFR based, Debt-to EBITDA variable rate 6.68%, expires October 2027 Convertible Notes, due October 2024, fixed coupon rate of 1.125% Convertible Notes, due August2029, fixed coupon rate of 3.875%

Unsecured Notes, due February 2028, fixed coupon rate of 4.75%

Unused capacity of $404M under

senior revolver facility as of

March31, 2024

Approximately 9.4 million ATSG shares repurchased since the beginning of 2022

8

9

2024

OUTLOOK

Projected Adjusted EBITDA for 2024 to be $516 million based on customer commitments currently under contract, with upside

Full year 2024 Adjusted EPS to be $0.55 - $0.80

2024 capital spending $410 million, including $165 million in sustaining

capex and $245 million for growth

2024 capital spending declining $380 million from 2023

10

1Q

2024

QUESTION &

ANSWER

Attachments

Disclaimer

ATSG - Air Transport Services Group Inc. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 14:09:15 UTC.