Atlas Air Worldwide releases third-quarter figures
30 / 10 / 2019
By Rachelle Harry
Atlas Air Worldwide has revealed its third-quarter results for this year.
From January to September, the airline reported an income of $60m – less than its $71.1m income from the first nine months of 2018.
In the third quarter of this year, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) totalled at $95.6m, compared with $123.9m in the third quarter of 2018.
The company has attributed its latest figures to factors such as low cargo yields and volumes, and the US-China trade war.
“Our third-quarter performance was affected by the uncertain global macroenvironment, driven by ongoing tariff and trade tensions,” said chairman and chief executive William J Flynn. “In addition to lower yields and volumes than we anticipated, labor-related service disruptions had a significant impact on our performance during the third quarter.
“Looking to the full year, we expect revenue of about $2.75bn, adjusted EBITDA of approximately $500m, and adjusted net income of approximately 60-65% of our 2018 adjusted net income.
However, remaining positive, Flynn continued: “Freight is a long-term growth industry. Despite current macroeconomic issues, the global middle class continues to expand and supply chains continue to grow and develop to meet demand.
“With the scale and scope of our operations, and our strategic focus on express, e-commerce and faster- growing markets, we are positioned well to serve the demand for airfreight today and in the future.”
President and chief operating officer John W Dietrich added: “We are also taking steps to navigate through the current headwinds. We are adjusting our business to adapt to the changing market environment with a focus on reducing costs, enhancing productivity, improving profitability, and generating cash.”
In a conference call with shareholders, Atlas Air executives defended their handling of the labour disputes that have contributed so significantly to the company’s weakened financial performance during the quarter.
The conference call has been archived here.