Air Transport Services Group

ATSG Board Increases Share Repurchase Authorization to $100 Million

WILMINGTON, OH – May 12, 2016 – The Board of Directors of Air Transport Services Group, Inc. (NASDAQ:ATSG) meeting here today amended its previous share repurchase authorization to authorize repurchases of up to $100 million of ATSG’s common shares.

On August 5, 2014, the Board authorized the Company to repurchase up to $50 million of its common shares. Repurchases under that program commenced in May 2015 and have totaled approximately $18.3 million to date.

Joe Hete, President and CEO, and a director of ATSG, said, "The Board’s action today is intended in part to accommodate an accelerated pace of share repurchases by ATSG to significantly offset the potential dilutive effect of share issuances from warrants granted to its customer, Inc. over the next five years. Those warrants are for the purchase of up to 19.9 percent of ATSG’s common shares through March 2021. The Board also regards share repurchases as an important capital allocation alternative for ATSG for the future, as its businesses grow and deliver greater cash returns."

Board authorization does not require the Company to repurchase a specific number of shares, and the Board may terminate the repurchase program at any time. Repurchases may be made from time-to-time on the open market, or in privately negotiated transactions. The timing, price and volume of any such repurchases would be based on market conditions, relevant securities laws and other factors.

About ATSG
ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world's largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including two airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. ATSG's subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Airborne Maintenance and Engineering Services, Inc. For more information, please see