Revenue during the quarter surged 34.12 percent to $237.92 million from $177.38 million in the previous year period. Gross margin for the quarter contracted 36 basis points over the previous year period to 72.79 percent. Total expenses were 92.54 percent of quarterly revenues, up from 91.35 percent for the same period last year. That has resulted in a contraction of 119 basis points in operating margin to 7.46 percent.

Operating income for the quarter was $17.75 million, compared with $15.35 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $56.96 million compared with $51.32 million in the prior year period. At the same time, adjusted EBITDA margin contracted 499 basis points in the quarter to 23.94 percent from 28.93 percent in the last year period.

Joe Hete, President and Chief Executive Officer of ATSG, said, "Forty-three of our Boeing 767s were dry leased to external customers at the end of the first quarter, compared with 29 a year earlier. Our leasing business revenues from external customers increased 7 percent for the quarter, and we expect accelerating growth in that segment as the year progresses. That trend, plus improved profitability in our airline operations and good returns from our aircraft maintenance and logistics businesses, position us to deliver continued strong earnings and cash flow in the months ahead."