AMERICAS: Atlas Air net income up 47%

Atlas Air Worldwide Holdings (AAWW) enjoyed soaring fourth quarter and full year profit fueled by strong air freight demand and tight wide-body, long-haul freighter capacity. Atlas Air’s net income rose 47 per cent in the quarter to US$41.6 million, while revenue rose 11.8 per cent year-over-year to $359.7 million. For the full year, Atlas reported […]


Atlas Air Worldwide Holdings (AAWW) enjoyed soaring fourth quarter and full year profit fueled by strong air freight demand and tight wide-body, long-haul freighter capacity. Atlas Air’s net income rose 47 per cent in the quarter to US$41.6 million, while revenue rose 11.8 per cent year-over-year to $359.7 million. For the full year, Atlas reported an 82 per cent increase in net income to $141.8 million and a 26 per cent increase in revenue to $1.34 billion. The company’s adjusted net income was $41.4 million for the quarter and $150 million for 2010. “2010 was an exciting year for the Company and for commercial airfreight demand,” said William J. Flynn, president and CEO of AAWW. “Our revenues increased 26 per cent and our net income grew sharply, due to strong airfreight demand, tight supply of wide-body, long-haul freighter aircraft, and our effectiveness in executing our business model. “We expect to report strong earnings in 2011,” said Flynn. “We anticipate steadily improving results throughout the year.” “We anticipate steadily improving results throughout the year, and our guidance includes our projection that we will receive and place into service three 747-8Fs from Boeing in the fourth quarter of 2011. We continue to discuss the proposed delivery schedule with Boeing, and uncertainty surrounding the timing of our deliveries remains.” AAWW expects that airfreight volumes will continue to grow from record levels in 2010, and that demand growth in the high-density Asian trade lanes that are important to the Company’s ACMI and Commercial Charter customers will continue to outpace global demand growth in 2011 and well into the future. Shipments of high-tech products, pharmaceuticals, automotive parts used in global manufacturing, as well as inventory replenishment and just-intime inventory management practices by manufacturers and retailers, are contributing to the strength in demand for airfreight. Tight supply in the widebody, long-haul, heavy-freighter space continues to support rates and load factors, Atlas said. “To address customer demand and bridge our capacity needs, we have entered into leases for two 747-400 Boeing Converted Freighters for an average of approximately three and a half years,” Flynn added.