Atlas Air Worldwide’s net income plummeted 32.8 percent from $31.2 million in the second quarter of 2012 to $21.0 million in the second quarter of 2013.
Quarterly revenue for the American cargo and passenger charter airline was $403.6 million in total, down from $424.7 million in the same quarter last year. However, of that total, revenue from the aircraft, crew, maintenance and insurance (ACMI) division, which provides outsourced cargo aircraft operating solutions, was $182.0 million in the second quarter, increasing 13.4 percent year-over-year from $160.4 million. Revenue from the AMC Charter division, which provides cargo and passenger aircraft charter services for the U.S. military, was $94.1 million, down from $138.0 million, and revenue from the commercial charter segment was $117.8 million, down from $120.8 million. Revenue from the dry leasing business, which provides aircraft and engine leasing solutions, totaled $6.2 million, up from $2.6 million.
“Earnings in the second quarter of 2013 were driven by the strength of our ACMI operations, especially our new 747-8 freighters,” said William J. Flynn, president and CEO of Atlas Air Worldwide, in a written statement.
In the first six months of 2013, net income was $41.1 million, sliding from $42.1 million in the first six months of 2012. From January to June, total revenue was $780.9 million in 2013, declining from $784.0 million in 2012. Revenue dropped year-over-year for the AMC Charter division, but increased for the ACMI, commercial charter and dry leasing segments.
Atlas Air Worldwide predicts “significant” earnings and cash flow for the full year of 2013, driven by its ACMI business and improving commercial charter contributions, as well as productivity improvements and operating efficiencies. It said it expects market growth during 2013 to be seasonal and second-half weighted, and anticipates a strong peak season driven by demand for new consumer electronics, especially in the gaming sector.