Atlas Air Q2 profit drops 18% to $88 million
Revenue increased 21% to $1.2 billion in the second quarter of 2022 compared to $990.4 million in Q22021.
Atlas Air Worldwide Holdings reported an 18 percent decline in net income at $88.3 million, or $2.65 per diluted share, compared with net income of $107.1 million, or $3.53 per diluted share, in the second quarter of 2021.
"On an adjusted basis, EBITDA totaled $215.6 million in the second quarter this year compared with $243.7 million in the second quarter of 2021. Adjusted net income in the second quarter of 2022 totaled $97.3 million, or $3.36 per diluted share, compared with $121.8 million, or $4.10 per diluted share, in the second quarter of 2021," says a release announcing the numbers.
Revenue increased 21 percent to $1.2 billion in the second quarter of 2022 compared to $990.4 million in Q22021. Volumes in the second quarter of 2022 totaled 83,922 block hours compared with 93,190 in the second quarter of 2021 - a decline of 10 percent.
"We delivered second-quarter results in line with our expectations," says John W. Dietrich, President and Chief Executive Officer, Atlas Air Worldwide. "Through the first half of the year, global airfreight volumes exceeded pre-pandemic levels while capacity remains constrained, particularly on key long-haul cargo trade lanes."
Higher airline operations revenue primarily reflected an increase in the average rate per block hour, partially offset by a reduction in block hours flown, the statement said. "The higher average rate per block hour was primarily due to higher fuel prices and higher yields (net of fuel) including the impact of new and extended long-term contracts."
For the six months ended June 30, 2022, reported net income was $169.8 million, or $5.03 per diluted share compared with net income of $197 million, or $6.59 per diluted share, in the first half of 2021 (which included $40.9 million, $31.9 million after tax, of CARES Act grant income), the statement added.
During the second quarter, Atlas Air took delivery of the first of the four new 747-8Fs. "The remaining three aircraft are expected to be delivered throughout the balance of this year."
As announced in February 2022, all four of these aircraft are placed with customers under long-term agreements, the statement said.
Atlas Air is in advanced negotiations with potential customers to place four brand new Boeing 777 freighters that the company expects to take deliveries soon. The first aircraft is to be delivered late in the fourth quarter of this year and the remaining three through 2023.
As announced earlier, Atlas Air is also purchasing five of its existing 747-400Fs at the end of their leases during the course of this year, the first of which was acquired in March and the second in May. It plans to complete the remaining three aircraft acquisitions between August and December 2022.
