Atlas Air 747-87UF/SCD (37571/1462 N852GT taxies to the stand following its arrival at Anchorage - Ted Stevens International Airport (ANC/PANC) on May 1, 2013.
(Photo by Michael Carter)
Atlas Air Worldwide Holdings posted third-quarter net income of $27.6 million, up 11.5% from the $23.7 million net profit the company reported in the year-ago quarter. Atlas Air Worldwide, headquartered in Purchase, New York, is parent company to Atlas Air and Titan Aviation Holdings, and majority owner of Polar Air Cargo.
During the July-September quarter, Atlas’ primary business news was an Aug. 27 expansion of the company’s CMI service with DHL Express, taking on a CMI arrangement for an additional four incremental Boeing 767-200 freighters owned by DHL Express and operated on DHL’s North American route network. Atlas expects to begin flying the four aircraft during the 2015 first-quarter.
By the end of January 2015, Atlas plans to have 11,767 freighters in CMI service for DHL.
More recently, on Oct. 23, Atlas upped its ACMI service with DHL Express by two incremental freighters—a 747-400F and a 747-8F—bringing Atlas’ total of ACMI aircraft in placement with DHL and other customers to 12 (five 747-8Fs and seven 747-400Fs, all operated by Polar Air Cargo).
The two new incremental aircraft will also be operated by Polar under an ACMI arrangement with DHL Express. The aircraft went into service in late October.
Additionally, on Nov. 6, Atlas placed its third ACMI aircraft—a 747-400F—into operation with Etihad Cargo; the aircraft is due to begin service this month.
“Both our third-quarter results and our recently announced placements of three additional ACMI aircraft and four more CMI aircraft illustrate the strength of our business,” Atlas president and CEO William Flynn said. “With airfreight volumes continuing to improve and market yields beginning to pick up, we expect our diversified mix and new placements to drive sequential EPS growth in the fourth quarter.”
Atlas’ adjusted net income for the third-quarter, reconciled to non-GAAP measures, was $27.4 million, down 4% year-over-year from $28.6 million in adjusted net income for the third-quarter of 2013.
Atlas Air’s consolidated operating revenue for the third quarter increased 14.9% year-over-year to $465.8 million. Operating expenses were up 16.4% year-over-year to $404.8 million. Consolidated operating income for the quarter was $61 million, up 5.7% year-over-year from $57.7 million in the year-ago quarter.
Atlas’ ACMI division third-quarter revenue fell 2.9% year-over-year to $184.1 million. ACMI block hours flown fell 2.5% to 28,096 and ACMI revenue per block hour slipped 0.5% to $6,551. Atlas said its ACMI profitability was offset in the third-quarter by an increase in maintenance expense on its 747-8F aircraft and “lower 747-400 flying by certain ACMI customers.”
Third-quarter revenue at Atlas’ commercial charter division was up 36.8% year-over-year, to $143.1 million. Commercial charter block hours flown grew 33.9% to 7,111; revenue per block hour grew 2.1% to $20,120. Atlas said charter operations during the quarter benefited from a “broad-based uptick in demand, partially offset by additional travel and ground expenses from flying to high-cost locations.”
Revenue at Atlas’ dry-leasing division Titan Aviation doubled year-over-year during the third quarter, to $25.4 million. Atlas pointed to its recently beefed-up fleet of six 777 freighters as the source of profitability in the division.
In other recent Atlas news, on Oct. 9 Michael Sheen was appointed president and CEO of Titan Aviation Holdings, Atlas’ dry-leasing subsidiary, adding to his current role as EVP and CCO of parent company Atlas Air Worldwide Holdings and Atlas Air, Inc. Additionally, John Dietrich was appointed president and CEO of subsidiary Atlas Air Inc. Dietrich will retain his current role of EVP and COO of parent company Atlas Air Worldwide Holdings. Both appointments were effective Oct. 15.
(Mark Nensel - ATWOnline News)
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