Atlas earnings take a dive

CHARGES and higher expenses have shaved off 19 per cent of Atlas Air Worldwide Holdings’ (AAWW) fourth-quarter earnings.

A reduction in commercial charter volumes has also weighed the cargo player down.

The company reported a profit of US$33.5 million, down from $41.6 million a year earlier. Charges came in the form of the retirement of its 747-200 fleet, while delayed aircraft deliveries also took effect.

Revenue increased 7.9 per cent to $388.2 million, compared to a projected $411 million. The operating margin fell to 13.8 per cent from 17.1 per cent. Operating expenses rose 12 per cent, as aircraft fuel costs went up 42 per cent.

Atlas’ main money-making division, the aircraft, crew, maintenance and insurance leasing business, reported a 1.6 per cent revenue increase. AMC charter revenue grew 48 per cent, while commercial charter revenue dropped 15 per cent.

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