Atlas Air Worldwide posts $41.5 million 2016
 

As predicted,





""""""Atlas Air Worldwide Holdings earned a 2016 net profit of $41.5 million, a nearly six-times increase over net income of $7.3 million in 2015, though the 2015 results are skewed by one-time charges related to settling class-action litigation.

The Purchase-New York based air cargo operator’s annual revenue was essentially flat in 2016 at $1.8 billion. But president and CEO Bill Flynn called 2016 “historic” for Atlas, which acquired Southern Air for $110 million and entered into a wet-lease contract with Amazon during the year.

“We acquired Southern Air, expanding the array of aircraft and services that we provide, especially to the fast-growing express market,” he said. “We entered into strategic, long-term agreements with Amazon to serve its rapidly growing e-commerce business … With our expanding business base and the ongoing development of our strategic platform, we are well-positioned to grow earnings [in 2017].”

Atlas Air Worldwide’s 2016 expenses dipped slightly year-over-year to $1.6 billion and operating income was $168.3 million, up 36.3% over an operating profit of $123.5 million in 2015.

Total block hours flown rose 18.2% year-over-year in 2016 to 210,444.""""""

They also said they are predicting a 20% growth in business this year, 75% ACMI and the rest charter.

PLUS they also said they don't predict a change in employee expenses this year... Swallow that pill.

Believable, turnover for people going to the majors etc is at an all time high. I don't agree with the litigation against the union, but it will obviously stagnate pay with a pause in negotiations. Im sure it will be higher than predicted just not drastically.

Regretfully I was wrong, nothing in the final earning statement for 2016 says that employee expenses will remain the same or anything abou employee expenses. I saw it written by another crew member and thought it was true. My mistake.

Bill and Spencer specifically said no pilot contract in 2017 at the very end of the conference call.

Lots of slow taxiing behind Atlas in CVG! And no I won't go around them.

That'll show them.

Not my call but I'll honor it.

Dutch, listen to the earnings call...right at the end...

Yep, did listen to it. My original post was correct...

Scott Group, Wolfe Research - Analyst [62]

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Perfect. And then just lastly, any update you can give us on pilot contract negotiations and if you are assuming any kind of step up in pilot pay in the guidance for 2017?

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Bill Flynn, Atlas Air Worldwide Holdings, Inc. - President & CEO [63]

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Scott, this is Bill. So our contract at Atlas became amendable in September of last year and in November of last year at Southern. We are in discussions with our pilots. We look forward to continuing to make progress or make progress with the pilots on the contract and we haven't made specific assumptions on the contract in our guidance this year other than the contractual rates that we have in place.

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Scott Group, Wolfe Research - Analyst [64]

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Okay, so you don't accrue any potential increases in real time?

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Spencer Schwartz, Atlas Air Worldwide Holdings, Inc. - EVP & CFO [65]

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No impact expected for 2017, if that is what you are asking.

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Scott Group, Wolfe Research - Analyst [66]

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Okay, thank you, guys. Appreciate it.

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This is the part that ****es me off. Bill flat out lying. In what f'in universe do we have an attractive contract? And even though we hired 370 last year, what was the net gain after all the attrition?


Unidentified Analyst

Okay, perfect. And then just ramping up for this contract, how does hiring look, are you guys having any trouble bringing in pilots are you having to pay any more to get people to come over or is that been relatively smooth?

Bill Flynn

We scaled – certainly been able to scale to meet our growth across all of our asset types. We hired about 370 pilots last year across all of our aircraft type. We have our contract in place. We think we have an attractive contract in place and certainly believe we'll be able to hire the additional pilots we need in 2017 and 2018, as we grow for Amazon and for our other customers.

However, Bill had to tell Amazon that he couldn't meet the 20 plane requirement for 2017. I think lying 101 comes with every MBA. We had a pres once state:"it's not a lie if you choose your words correctly". Thank you JG for setting the standards of purity at ABX.

What's the big deal......its just alternative facts......totally acceptable these days. As usual stepping over dollars to pick up dimes at AAWH. Connie, without a Harvard MBA has out foxed all of these bozos. He will end up the darling with Bezos the way things are going.

He usually does

Earning calls are like pony shows... they re there to sell the company stock, get its pps up, and sound all good and rosy.

We were never contracted to operate 20 by the end of 2017. The number was 20 by the end of 2018.

From Cargo Facts May 2016........The first of these freighters will enter Amazon service in the second half of this year, with all twenty to be in service by the end of 2018.

Atlas scores deal with Amazon for 20 freighters, 20% stake | Cargo Facts

True except one is already in service, and another as a spare. They begin entering into service around June through the end of 2018 at 1.2 airframes per month.

It appears they have already hired fat into the 767 to cushion attrition.

24 Atlas hired at UPS year to date.

A quick look at Atlas minimums shows 2000TT and 500 turbine. Why not drop minimums to 1500TT if they are having trouble finding pilots?

Nothing against 1,500 hour guys but you really need a 4,000 hour pilot for the right seat of a 767. With 2,000 ME and turbine. If I was in HR that's what I would be looking for and wouldn't give a crap about a 4 year degree.

Well, actually...

* 2000 hours of total time
* 500 hours turbine

or

* 1500 TT
* Graduate of 141, 142 or US Military Training Program
* Holds an SIC/PIC Type Rating in a Turbojet Aircraft

GO here

Home | ATI

plus they are looking at getting 15% whopping pay raise. Actually its a free 767 type and thats about all it is.

6 from Netjets too, they are on a roll : )

Which is it? Did 6 Netjets pilots resign to go to Atlas, or was it the other way around ? (6 Atlas pilots resign to go Netjets)

6 NETJETS pilots went to UPS : )

Why are you so concerned about the who, what, why, and how of things going on at ATI? For someone who does not, nor ever has, work for ATI you sure have a lot to say on the matter. Why so obtuse? A little backside hurt for some reason?? Did that potted cactus you have on your cubical desk die on you?

Well I do work at ATI. And I can say without a doubt, everyone here is looking at what K4 did. And my (and a lot of new hires I've talked with) personal expectation is better than that.

Hopefully you have told this directly to the MEC because they along with a few of the other senior types seem to be perfectly happy undercutting the profession as long as the 12 year types get their 2 percent bump each year, regardless of the fact all the other pay scales are frozen. No hurry for those 2 as long as the rest of the group sits back and just takes it.

Again, this seems to be a popular meme with the folks on the other side of the fence that just isn't true. How is it that so many people who don't even work for ATI are so dead sure they know exactly what is going on and how we are getting screwed and who is doing the screwing.

The MEC and the NC know that a measly 15% (like some trolls who don't work for ATI think they know what we want) ain't gonna cut it. Like I've said before on this board, K4 showed that you can be a home based airline and still have a industry standard contract. And if a TA is put before us that does not reflect this reality, it will be dead on arrival.

PS, The troll remark is not directed at you Freighthound, but rather another poster.

Appears you found one.

No pocket cactus here. The more I hear out of your management makes me wonder what they are growing on their desk.

Plus I wouldn't bother telling the ATI MEC anything. You'd be better off skipping the middle man and going right to management.