AMERICAS: Atlas Air optimistic despite drop in profits

Air cargo demand will continue to grow throughout 2011, according to Atlas Air Worldwide Holdings(AAWH), despite reporting a significant drop in 1Q net income. AAWH, the parent company of Atlas Air and Titan Aviation Leasing and the majority shareholder of Polar Air Cargo Worldwide, reported net income of US$10.5 million on revenues of $297.6 million […]


Air cargo demand will continue to grow throughout 2011, according to Atlas Air Worldwide Holdings(AAWH), despite reporting a significant drop in 1Q net income. AAWH, the parent company of Atlas Air and Titan Aviation Leasing and the majority shareholder of Polar Air Cargo Worldwide, reported net income of US$10.5 million on revenues of $297.6 million for the three months ended 31 March. This compares with $33.8 million and $295.2 million in the same period a year earlier. The fall in profits was attributed by the operator to greatly reduced demand for military charters and increased maintenance costs. “Market demand for our aircraft remains strong. We continue to expect strong earnings in 2011, and steadily improving results throughout the year,” said William Flynn, president and CEO. AAWH’s first-quarter 2011 results were boosted by revenue and volume growth in the company’s core ACMI business. “As planned, we expanded our ACMI service for DHL Express to eight aircraft from six in late March, and now have 20 of our 24 B747-400 freighters in ACMI,” said Flynn. He said the company was basing its favourable outlook on the assumption that three new B747-8Fs on order from Boeing would enter service at the beginning of the fourth quarter, but admitted a final delivery schedule had not yet been received from Boeing who has already pushed the date for the first delivery customer back twice.