Atlas Air reports 29 percent rise in revenue in Q2 2018

Aug 03, 2018: Atlas Air Worldwide Holdings (AAWW) has reported strong second-quarter 2018 on the back of increased customer demand.

The aircraft lessor saw revenue grow by 29 percent to a record $666.1 million, while volumes increased 19 percent to a record 72,660 block hours on the back of revenue growth.

“Our volumes and revenue grew to new records in the second quarter, and while reported results were impacted by warrant accounting, our adjusted income and adjusted EBITDA were sharply higher,” said William J Flynn, president and chief executive officer.

The company reported a loss from continuing operations, net of taxes, of $21.1 million, during the period compared with reported income of $39.0 million, during the same period in 2017.

Reported results in the second quarter of 2018 included an unrealized loss on outstanding warrants of $50.0 million compared with an unrealised gain on outstanding warrants of $13.8 million in the year-ago period.

On an adjusted basis, income from continuing operations, net of taxes, in the second quarter of 2018 increased to $49.7 million.

The company’s ACMI segment contribution in Q2 was relatively unchanged from the prior-year period, as a significant increase in block-hour volumes and a higher average rate per block hour were offset by higher heavy maintenance expense and amortization of deferred maintenance costs.

Block hours grew 19 percent during the period, reflecting increased 767 flying for Amazon, the start-up of 747-400 flying for several new customers, and the redeployment of 747-8F aircraft from the Charter segment to ACMI.

While the higher Charter segment contribution during the period was primarily driven by increases in military cargo and passenger demand, an increase in commercial cargo volumes, and higher aircraft utilisation, partially offset by the redeployment of 747-8 aircraft to the ACMI segment.

In Dry Leasing, higher segment contribution primarily reflected the placement of additional 767-300 converted freighter aircraft throughout the second half of 2017 and first half of 2018, as well as the placement of a 777-200 freighter in early 2018.

“We expect to continue to build on our strong performance in the second half of 2018. Airfreight demand is solid and the global economy is growing. As a result of our strategic initiatives to grow and diversify our fleet, expand our customer base and enhance our business mix, we are meeting the growing needs of our customers, driving our results and extending our leadership in global aviation outsourcing.

“For the full year, we now expect our revenue to exceed $2.6 billion. We project adjusted EBITDA to increase to more than $520 million. And we anticipate our full-year adjusted net income will grow by 45 percent to 50 percent compared with 2017, up from our prior outlook of 35 percent to 40 percent growth.”