Atlas Air confounds critics of ACMI model
19 / 11 / 2009
CRITICS of the ACMI model have often predicted that the global recession would have a devastating affect on the sector, as airlines pull out of contracts and retrench freighter operations that are currently, almost universally, unprofitable.However, Atlas Air seems to have confounded its critics by posting impressive Q3 results and claims that it has transformed its business into a sustainable and growing model.
Holding company Atlas Air Worldwide Holdings (AAWW), announced a 181 per cent increase in net earnings for Q3 compared to the year before, at US$14.7 million on revenues of $255.5 million.This brought total net income for the calendar year so far to US$49.4 million on revenues of $740 million. This compares with net income of just $1.4 million in the same period of 2008.The fact that total revenues declined from $1,272.5 million to $740 million in the period reflects the deconsolidation of Polar Air Cargo from AAWW for financial reporting purposes.Bill Flynn, president and chief executive officer of AAWW is certainly bullish about the company’s results and the future prospects.“Net earnings in the third quarter were well over two and one-half times the amount that we reported in the third quarter of 2008, despite a still challenging though improving business environment and despite a smaller total fleet size than we had last year.“Our strong third-quarter earnings, like our previous quarterly results this year and the results we expect to report for the fourth quarter, reflect our successful efforts to transform our business, our operating cost base and our fleet throughout 2008 and 2009. Demand in our AMC segment in the third quarter was consistent with the levels that we have seen in 2009, and we are encouraged by improving ACMI customer utilisation and by strengthening charter yields.”For the full story read the latest issue of Air Cargo News, dated 27 November. To subscribe, click on ‘Subscribe’ above.