Atlas Air Profit Soars to $14.7 Million

After major shifts in operations and structure, Atlas Air Worldwide Holdings increased net profit by 181 percent in the third quarter to $14.7 million. The strong gain follows sharp year-over-year improvements in earnings reported for the first and second quarters of 2009. The holding company, whose subsidiaries include Atlas Air, 51 percent of Polar Air Cargo, and a 49 percent share of Global Supply Systems, expects to earn more than $18 million in the coming fourth quarter.

“Net earnings in the third quarter were well over two and one-half times the amount that we reported in the third quarter of 2008, despite a still challenging though improving business environment and despite a smaller total fleet size than we had last year,” said William J. Flynn, president and chief executive officer.

AAWW has transformed its business, operating cost base and fleet throughout 2008 and 2009. Demand for charter flights for the U.S. military was stable through the first nine months of 2009. Wet leasing, or contracts for aircraft, crew, maintenance and insurance, improved as did charter yields, Flynn said.

The higher earnings came as AAWW drastically slashed revenue from $460.7 million in third quarter 2008 to $255.5 million this year. The lower revenue was partially the result of deconsolidating Polar Air Cargo for financial reporting purposes in October 2008 and consolidating Global Supply Systems in April of this year.

“We have seen an ongoing improvement in both supply and demand in global airfreight since earlier this year,” said Flynn. “Older, less-efficient, wide-body freighter aircraft continue to be retired, and recent rate increases announced by major air cargo carriers are a tangible sign of improvement in the market. We expect to see improving trends continuing through the fourth quarter and expect our fourth-quarter net earnings to exceed $18 million on that basis.”