Air Transport Services Group (ATSG), a provider of medium wide-body freighter aircraft leasing, air cargo transportation and related services reported Q1/16 revenues increased 21% to $177.4 million. Excluding revenues from reimbursed expenses, revenues increased 18%. This increase included contributions from five more dry leases of Boeing 767 cargo aircraft with external customers, and expanded air network operations for ATSG’s newest customer, Amazon Fulfillment Services, a subsidiary of Amazon.com.

ATSG said net earnings from continuing operations were $8.2 million versus $8.9 million in Q1/15.

ATSG’s increasing customer diversification is evident in the year-over-year comparison of quarterly revenues. In Q1/16, DHL accounted for 36%, Amazon 19% and the U.S. Military 15% of ATSG’s revenues. In Q1/15, DHL accounted for 52% and the U.S. Military 16% of revenues. Amazon became an ATSG customer in September 2015.

First-quarter capital expenditures were $71.7 million, up $28.2 million from Q1/15. That included $52.8 million to purchase four Boeing 767-300 aircraft and for freighter modification costs for those and other aircraft. Capital spending is now projected to total $290 million in 2016, of which $215 million is for fleet expansion.

Joe Hete, president and CEO of ATSG, said, “Under its key multi-year agreements with global leaders DHL and Amazon, and with an increasing number of our freighters deployed under long-term dry leases, ATSG is on a sustainable, diversified growth trajectory, reflected in a 21% increase in revenue and our highest Adjusted EBITDA for a first quarter.”