Atlas Air sees profits and volumes slide due to Covid cases and hurricane Ian
03 / 11 / 2022
Atlas Air 747-8F. Photo: Cainiao Network
Atlas Air Worldwide Holdings saw its profits and volumes decline in the third quarter of the year due to a rise in Covid cases and the impact of Hurricane Ian.
The lessor said its revenues for the quarter increased by 10.7% year on year to $1.1bn, while operating profits declined by 50.1% to $91.8m and net income dropped 49.7% to $60.1m.
Third-quarter volumes, meanwhile, declined by 12.3% year on year to 79,274 block hours.
The company said that the revenue increase was down to higher average rates due to higher fuel prices and higher yields, including the impact of new and extended long-term contracts and increased cargo flying for the US Air Force.
Block hours decreased primarily due to operational disruptions related to an increase in Covid-19 cases in July and August, operation of fewer passenger flights and the effects of Hurricane Ian.
“The increase in cases and effects of the hurricane adversely impacted our crew availability and our ability to position them due to the widespread and well-publicised cancellations of commercial passenger flights,” Atlas said.
The company was also affected by increased pilot costs related to its new collective bargaining agreement, higher overtime pay related to an increase in Covid-19 cases, as well as higher premium pay for pilots operating in certain areas significantly impacted by Covid-19.
Profits were also adversely impacted by lower aircraft utilisation and higher crew travel costs related to the operational disruptions.
Deal still going ahead
The company also updated on its takeover by a group of investors. Atlas said the takeover was expected to be completed in the last quarter of this year or the first quarter of next year despite a lawsuit against the company for alleged violations of the securities exchange act.
“The Company continues to expect to complete this transaction in the fourth quarter 2022 or the first quarter 2023,” Atlas said.
