Air Transport Services Group


WILMINGTON, OH - June 5, 2008 - Air Transport Services Group, Inc. (NASDAQ:ATSG), a diversified air cargo services company and parent of three cargo airlines, including ABX Air, today reiterated that its liquidity position remains strong, and that the Company expects to remain in compliance with the covenants of its senior debt facilities.

On May 28, 2008, ATSG said it was reviewing an announcement from ABX Air’s largest customer, DHL Express, that DHL intends to reduce the number of ABX Air aircraft deployed in its U.S. express network beginning in July, and that DHL was negotiating with United Parcel Service (UPS) for an agreement to outsource to UPS most or all of the airlift and ground services currently provided by ABX Air.

Joe Hete, Chief Executive Officer of ATSG, said: “Our preliminary view based upon what we know at this time, which we have shared with our principal creditors, is that our financial strength, marketable asset base and projected cash flow should allow us to remain in compliance with our financial covenants and required debt amortization under our credit agreements for the remainder of their terms. We look forward to updating the market on our outlook when more information about DHL’s intentions becomes available.”

About Air Transport Services Group, Inc. (ATSG)
Air Transport Services Group, Inc. (formerly known as ABX Holdings, Inc.) is a leading provider of air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. Through five principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier Certificates, ATSG also provides aircraft leasing, aircraft maintenance services, airport ground services, fuel management, specialized transportation management, and air charter brokerage services. ATSG subsidiaries include ABX Air, Inc., Air Transport International, LLC, Cargo Aircraft Management, Inc., Capital Cargo International Airlines, Inc., and LGSTX Services, Inc.

Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. Air Transport Services Group, Inc.'s actual results may differ materially from the results discussed in the forward-looking statements. There are a number of important factors that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, our ability to remain in compliance with the terms and conditions of our credit agreements and otherwise satisfy our lenders, our ability to refinance our indebtedness to DHL if required, reductions in the scope of services that ABX Air performs under its ACMI and Hub Services Agreements with DHL and the rate at which those reductions occur, ABX Air’s ability to maintain cost- and service- level performance under the Agreements, the resolution via arbitration of certain issues related to overhead allocation under the Agreements, ABX Air’s ability to and the rate at which it can re-deploy its assets that are removed from service under the Agreements and generate revenues and earnings from customers other than DHL and other factors that are contained from time to time in Air Transport Services Group's filings with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on the Company's forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. Air Transport Services Group undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

For more information, contact:
Bill Roberts or Wayne Buckhout
CTC Inc.