Release #: ATI 24.02
February 29, 2024
Ongoing Labor Issues Impact ATSG Earnings
WASHINGTON—On Tuesday, February 27, Air Transport Services Group Inc. (ATSG), parent company of Air Transport International (ATI), reported poor 2023 Q4 earnings, marking the second quarter in a row that ATSG has failed to meet expectations. What ATSG CEO Joe Hete failed to mention is that ATI, ATSG’s largest air carrier, had an outstanding Q4 with record-breaking peak operations for Amazon.
The ATI pilots, represented by the Air Line Pilots Association, Int’l (ALPA), delivered over 98 percent operational reliability to Amazon during the critical holiday period. Despite this, Hete reiterated that he does not expect an amended pilots’ agreement to be reached this year. As a result of continuing operations with a contract substantially below market-based agreements, ATI continues to experience a mass exodus of pilots. ATI’s financial results, the best in the ATSG family, continue to be impacted by increased training costs as ATI attempts to maintain enough pilots.
“Every single day, ATI pilots are making the difficult decision to restart their seniority-based career at other carriers because they have lost faith in ATSG and ATI management. Experienced pilots who have been flying at ATI for years are being replaced by new-hire pilots meeting the lowest minimum qualifications who only intend to stay at ATI a short time. This constant turnover and attrition may affect performance and performance bonuses for ATSG,” said Capt. Mike Sterling, chair of the ATI ALPA Master Executive Council. “A market-based contract is the only solution to stem record attrition and protect ATI’s stellar reputation as Amazon’s largest air cargo partner in the world.”
ATI has faced staggering pilot attrition over the last two years as pilot groups across the industry achieve significant gains in contract negotiations, making careers at other carriers much more appealing. In 2023, 250 pilots left ATI—a startling 45 percent of the airline’s pilots. So far in 2024, more than 31 pilots have left the carrier.
“We call on ATSG management to right the ship for our customers, our investors, and the employees who have built their careers here,” said Sterling. “The pilots of ATI have invested heavily in growing the airline since Amazon operations began in 2015. We delivered record reliability during the 2023 holiday season—despite demanding schedules that deteriorate our quality of life—in an overwhelming demonstration of our commitment to Amazon. ATI pilots help generate more than $500 million in revenue for ATSG, yet management continues to ignore their responsibility to deliver the market-rate pilot agreement we have earned.”
In January, the ATI pilots formally requested that the National Mediation Board release them to self-help, which for pilots means a legal strike. In November 2023, 99.7 percent of ATI pilots voted in favor of authorizing a strike when legally permitted.
Founded in 1931, ALPA is the largest airline pilot union in the world and represents more than 77,000 pilots at 43 U.S. and Canadian airlines, including 684 ATI pilots. Visit the ALPA website at alpa.org or follow us on Twitter @ALPAPilots.
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CONTACT: ALPA Media, 703-481-4440 or Media@alpa.org