Atlas Air posts strong Q1 results; expects Q2 net income to grow 30%
Atlas Air Worldwide Holdings published its report card for the first-quarter 2021 where net income stood at $89.9 million, or $3.05 per diluted share, compared with $23.4 million, or $0.90 per diluted share, in the first quarter of 2020.
On an adjusted basis, EBITDA rose to $181.3 million in the first quarter of 2021 compared with $121.2 million in the prior-year period. Adjusted net income grew to $72.2 million, or $2.45 per diluted share, in the first quarter of 2021 compared with $29.9 million, or $1.15 per diluted share, in the prior-year period.
“Our performance was driven by the strength and flexibility of our global business model and our team continuing to capitalize on the current airfreight environment, with demand and yields that are well above typical seasonal levels,” said Atlas Air Worldwide president and chief executive officer John W. Dietrich.
“Our results also benefited from flying four 747 freighters and one 777 freighter that we reintroduced to our fleet throughout 2020 to serve customer demand.
Dietrich added, “We are off to a very good start in 2021 and are seeing continued business momentum in the second quarter. We are closely monitoring the market and leveraging the diversity of our business model. This includes being prepared to capitalize on global market conditions as well as being able to successfully adjust to any changes.
With the strong global demand for airfreight outpacing air cargo supply, Atlas Air anticipates airfreight demand and yields to remain strong, with capacity on long-haul trade lanes remaining tight. International passenger flying on widebody aircraft has been slow to recover, and will likely be last to return as countries continue to struggle with Covid-19 and many borders remain closed. Recent passenger air traffic has largely been driven by pent-up demand for domestic and regional leisure travel with smaller-gauge aircraft, which is less impactful to international airfreight.
“In the second quarter of 2021, we expect to fly approximately 90,000 block hours, with revenue of approximately $950 million, and adjusted EBITDA of about $210 million. In addition, we anticipate adjusted net income to grow approximately 30 percent compared with adjusted net income of $72.2 million in the first quarter of 2021,” he said.
Given the ongoing economic and market-related uncertainties, including Covid-19, new variants of the virus, surges in cases globally, travel restrictions, low international passenger travel and other factors, the company is providing a second-quarter outlook, but not issuing a full-year 2021 earnings outlook at this time.
“We expect to fly approximately 90,000 block hours in the second quarter of 2021, with revenue of approximately $950 million, and adjusted EBITDA of about $210 million. In addition, we expect second-quarter 2021 adjusted net income to grow approximately 30 percent compared with adjusted net income of $72.2 million in the first quarter of 2021,” he said.