Atlas Air Worldwide reports 1Q earnings up 21.9%
Published: May 10, 2012
Atlas Air Worldwide Holdings (AAWH), parent of ACMI cargo carriers Atlas Air and Polar Air Cargo, posted a first-quarter net income of $ 12.8 million, up 21.9% from $ 10.5 million in the year-ago period ( ATW Daily News, May 9, 2011 ).
AAWH president and CEO William Flynn said the results were “well above” the company’s expectations. “The improvement was primarily due to a substantial pickup in the commercial airfreight market during March 2012,” he said in a statement. “Volumes and rates improved dramatically compared with January and February, and we were well-positioned to help customers respond to an increase in demand for airfreight capacity, especially out of Asia, for new, high-tech product launches, pharmaceuticals, automotive parts and other high-value, time-sensitive-to-market shipments,” he said.
First-quarter revenue was $ 359.30 million, up 20.7% from $ 297.61 million in the year-ago quarter, reflecting increases in revenue per block hour and volumes in AMC Charter business, including strong growth in military passenger service, as well as higher rates and volumes in ACMI and Commercial Charter operations.
Operating expenses were $ 338.7 million, up 20% from the 2011 first quarter, primarily due to increases in aircraft fuel, labor expense, depreciation and amortization, plus other operating expenses, the company said.
Flynn said the company is reaffirming its 2012 guidance and continues to expect that market growth during the year will be “seasonal and self-half weighted.” He added: “Our new (Boeing) 747-8Fs are driving growth and profitability in our business. They have begun to enter service and will be an important contributor this year. In addition, we will benefit from our first full year of AMC Charter passenger service and a continuing step-up in CMI flying for Boeing and DHL Express. We also anticipate that approximately 57% of our maintenance expense will be incurred in the first-half. As a result, we anticipate a sequential increase in our quarterly earnings throughout the year.”