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Atlas Air profits down 2pc to US$29.39 million, revenues up 1.1pc

MIAMI-BASED Atlas Air Worldwide Holdings posted a two per cent second quarter profit decline to US$29.39 million drawn on revenues of $455.83 million, which increased 1.1 per cent year on year.

"We are seeing good demand for our aircraft and services as we enter the second half of 2015, as many of our customers are outperforming the overall market," said president and CEO William Flynn.

"As we gather additional insight into second-half demand, yields and military requirements, we continue to look forward to a strong year and a significant increase in earnings compared with 2014," he said.

Mr Flynn also said he expects 55 per cent of earnings to occur in the second half of the year and that he expects a relatively strong peak season.

Some of the larger freight forwarders, he added, are already starting to reserve space in preparation for peak demand, he said.

"Responding to market demand, we are implementing several previously announced fleet initiatives that are incorporated in our framework," he said.

Placing an additional 747-400 freighter in ACMI service with DHL Express at the start of the third quarter was one step followed by the acquisition of a new 747-8 freighter to be delivered in November.

There are also plans to return an owned, unencumbered 747-400 converted freighter to active service to meet additional charter demand as well as securing a short-term operating lease on a second 747-400 converted freighter in charter with more favourable terms.

Mr Flynn also said the would expands the company's Titan Dry Leasing portfolio by acquiring and converting two 767 passenger aircraft into freighter configuration. The freighters will be leased to DHL on a long-term basis when they are delivered in the fourth quarter.