Atlas Air Net Profit Soars 130 Percent

Stronger demand, improved yields and higher prices powered a 130 percent surge to $33.8 million in net profit for Atlas Air Worldwide Holdings in the third quarter.

Revenue jumped 27.9 percent to $326.7 million compared with $255.5 million in the third quarter a year earlier.

Sharply higher revenue and earnings reflected strong commercial airfreight demand; tight supply of wide-body, long-haul freighter aircraft; high ACMI aircraft utilization; and a significant increase in commercial charter volume and rates, the company said.

For the nine months ended September 30, 2010, AAWW recorded net income of $100.3 million on revenue of $978.1 million and pretax earnings of $170.8 million.

In 2009, AAWW’s nine-month net income totaled $49.4 million on revenue of $740 million and pretax earnings of $78 million.

Pretax earnings for the first nine months of 2010 included a net expense of $16.2 million for legal settlements, partly offset by an $8.8 million litigation settlement receipt and a gain of $3.5 million on disposal of aircraft assets.

“We expect 2010 to be a record year for the company and for commercial airfreight demand,” said William J. Flynn, president and chief executive officer of AAWW.

“Shipments of high-tech products, pharmaceuticals, automotive parts used in global manufacturing, as well as inventory replenishment and just-in-time inventory management practices by manufacturers and retailers, are contributing to the strength in demand for airfreight,” he said.

“In addition, as we have noted previously, tight supply in the wide-body, long-haul, heavy-freighter space has contributed to a significant improvement in rates,” said Flynn.

The three months ending Sept. 30 were the first full quarter of outsourced, passenger-CMI service for SonAir, using two customer-owned 747-400 aircraft. Quarterly results also include the startup of CMI flying for Boeing.

“We expect our fourth-quarter results to reflect seasonally strong commercial airfreight demand and continuing tight supply in wide-body, long-haul markets,” said Flynn.
(Source:www.joc.com)