Atlas Air Worldwide CEO: Record profit shows cargo operator is in 'transformative phase' | ATW Online

Atlas Air Worldwide CEO: Record profit shows cargo operator is in 'transformative phase'

By Aaron Karp | February 21, 2011
0

*
Share
* Email
* Print

Atlas Air Worldwide Holdings is "in a transformative phase" in which it is solidifying profitability and is poised to escalate earnings further when new Boeing 747-8Fs begin delivering, President and CEO William Flynn told investors last week. Speaking to the Stifel, Nicolaus & Co. Transportation and Logistics Conference, available via webcast, he noted the company's record annual net profit of $143 million for 2010 reported last week, representing an 86% improvement over 2009 net income of $76.2 million.

Flynn pointed out that AAWH, parent of ACMI cargo carriers Atlas Air and Polar Air Cargo, is achieving the strong results even though "Boeing has yet to deliver the 747-8. We were already supposed to have three in service. We expect three [to be delivered] by year end and as those aircraft deliver, we see a substantial step-change leap to another level of earnings performance." The carrier has 12 747-8Fs on order.

ATW's 2011 Phoenix Award winner (ATW, Feb. 1) saw full-year 2010 revenue surge 26.4% compared to 2009 to $1.34 billion while expenses heightened 21.8% to $1.1 billion, including a 49.2% jump in fuel costs to $300.2 million. Operating income was $227.9 million, up 51.9% over an operating profit of $150 million in 2009. Total block hr. flown in 2010 lifted 17.8% year-over-year to 128,358 including an 18.9% rise in ACMI block hr. to 91,357.

"We anticipate steadily improving results throughout" 2011, Flynn said. "Airfreight demand going forward is very strong … New supply introduction [throughout the air cargo industry] has lagged demand [leading to] substantially higher yields."