News Content
Atlas Q1 earnings swell to US$8.3m on back of higher volumes, rates
ATLAS Air Worldwide Holdings' Q1 net income from operations rose to US$8.3 million, up from $7.7 million for the same quarter a year earlier.
"Both our volumes and average rate reflected an increase in B777 and B737 CMI flying following the acquisition of Southern Air, an increase in B767 CMI flying, as well as the temporary redeployment of 747-8F aircraft to our charter segment.
"Lower charter segment contribution during the period reflected an increase in heavy maintenance costs and lower average rates," a report by London's Air Cargo News cited the company as saying.
"These impacts were partially offset by an increase in military passenger and cargo demand, which drove an increase in block-hour volumes, lower costs related to crew training, and the temporary redeployment of 747-8F aircraft from our ACMI segment. Average charter rates during the quarter primarily reflected a reduction in cost based rates paid by the military."
In dry leasing, lower revenue and segment contribution resulted from a decrease in revenue from maintenance payments related to the scheduled return of a passenger aircraft in 2016, partially offset by revenue from the placement of B767-300 converted freighters with Amazon, as well as one 767-300 converted freighter aircraft with DHL Express in February 2016.
Higher unallocated income and expenses in the first quarter of 2017 primarily reflected the impact of the Southern Air acquisition and fleet-growth initiatives.
President Bill Flynn said: "We will have a full year of contribution from Southern Air and expect a positive impact on our full-year results from our service for Amazon."
The company placed a second B767-300 aircraft into service for Amazon in February, and added a third and fourth aircraft in May. It also announced the placement of two of B747-8 freighters with Cathay Pacific Cargo on an ACMI basis, with service beginning in May.
Atlas is also confident that "significant new customer agreements" with Asiana Cargo, Nippon Cargo Airlines and FedEx that will contribute to earnings growth this year.
Atlas said that its upbeat view for 2017 reflects "solid demand from our customers, the benefits we expect from our fleet initiatives, and the steps we have taken to align our business with the faster-growing express and e-commerce markets."
The company statement added that looking ahead to "the full year, we expect total block hours to increase approximately 20 per cent compared with 2016, with more than 75 per cent of our hours in ACMI and the balance in charter."
"Both our volumes and average rate reflected an increase in B777 and B737 CMI flying following the acquisition of Southern Air, an increase in B767 CMI flying, as well as the temporary redeployment of 747-8F aircraft to our charter segment.
"Lower charter segment contribution during the period reflected an increase in heavy maintenance costs and lower average rates," a report by London's Air Cargo News cited the company as saying.
"These impacts were partially offset by an increase in military passenger and cargo demand, which drove an increase in block-hour volumes, lower costs related to crew training, and the temporary redeployment of 747-8F aircraft from our ACMI segment. Average charter rates during the quarter primarily reflected a reduction in cost based rates paid by the military."
In dry leasing, lower revenue and segment contribution resulted from a decrease in revenue from maintenance payments related to the scheduled return of a passenger aircraft in 2016, partially offset by revenue from the placement of B767-300 converted freighters with Amazon, as well as one 767-300 converted freighter aircraft with DHL Express in February 2016.
Higher unallocated income and expenses in the first quarter of 2017 primarily reflected the impact of the Southern Air acquisition and fleet-growth initiatives.
President Bill Flynn said: "We will have a full year of contribution from Southern Air and expect a positive impact on our full-year results from our service for Amazon."
The company placed a second B767-300 aircraft into service for Amazon in February, and added a third and fourth aircraft in May. It also announced the placement of two of B747-8 freighters with Cathay Pacific Cargo on an ACMI basis, with service beginning in May.
Atlas is also confident that "significant new customer agreements" with Asiana Cargo, Nippon Cargo Airlines and FedEx that will contribute to earnings growth this year.
Atlas said that its upbeat view for 2017 reflects "solid demand from our customers, the benefits we expect from our fleet initiatives, and the steps we have taken to align our business with the faster-growing express and e-commerce markets."
The company statement added that looking ahead to "the full year, we expect total block hours to increase approximately 20 per cent compared with 2016, with more than 75 per cent of our hours in ACMI and the balance in charter."
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
