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Air Transport Services stock soars after deal to lease 12 Boeing 767s to Amazon

Shares of Air Transport Services Group Inc.
ATSG,
+8.12%

soared 10.3% toward a 4 1/2-month high in premarket trading Thursday, after the aircraft leasing company announced a deal to lease an additional 12 Boeing 767-300 converted cargo aircraft to Amazon.com Inc.
AMZN,
-0.15%
.
As part of the agreement, one aircraft was delivered on May 29 and the remaining 11 will be delivered in 2021. The leases will be for 10 years, with options for Amazon to extend them by 3 years. The company said the deal increases the number if aircraft leased to Amazon to 42 by the end of 2021. “This new commitment is further evidence of Amazon’s confidence in our ability to support its expanding U.S. air network,” said Chief Executive Rich Corrado. The stock has rallied 15.1% over the past three months through Wednesday, while Amazon shares have climbed 25.4% and the Dow Jones Industrial Average
DJIA,
-0.07%

has slipped 3.0%.

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