Atlas 'encouraged' by market volumes
Atlas Air Worldwide Holdings has presented an upbeat market volume outlook after announcing a second quarter net income of $29.6 million, compared with $20.1 million in same period last year.
William Flynn, president and chief executive of the US-based aircraft leasing company, said: “We are off to a good start in 2014. Airfreight demand is improving, and we are encouraged about our full-year outlook.
“As we continue to gather additional insight into second-half yields, demand and military requirements, we are maintaining our full-year earnings framework.”
He added: “In the face of an uncertain airfreight market and an anticipated decline in military cargo demand, we have diversified our business mix and are driving business resilience.
“Results within our ACMI segment are benefiting from modern 747-8 freighters as well as an increase in flying for our CMI customers. In dry leasing, the investments we've made since early 2013 in attractive 777 freighters on long-term leases with strong customers are driving a significant increase in contribution from highly predictable revenue and earnings streams.
“In addition, the expansion of our 767 platform and our growth into military and commercial passenger charter operations are providing added strength, complementing the improvement in airfreight demand.”
In its outlook, Atlas said it is encouraged by the “positive direction” of market trends so far this year.
Mr Flynn added: “Airfreight volumes continue to improve, and recent forecasts suggest that airfreight demand may grow by several percentage points in 2014 – the first real growth after three essentially flat years.
“Airfreight yields continue to lag behind, however, and there is still limited visibility into peak-season yields, demand and second-half military requirements. As a result, we are maintaining our earnings outlook for the full year.”