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Atlas Air net income drops 50% on Covid blues

03-11-2022 (Says STAT Times)

Nasdaq-listed Atlas Air Worldwide Holdings reported a 50 percent decline in net income to $60 million for the third quarter of 2022 compared with net income of $119 million in the third quarter of 2021.

Revenue increased to $1.1 billion compared with $1 billion in the prior-year quarter, says an official release. "Volumes in the third quarter of 2022 totalled 79,274 block hours compared with 90,363 in the third quarter of 2021."
 

Nasdaq-listed Atlas Air Worldwide Holdings reported a 50 percent decline in net income to $60 million for the third quarter of 2022 compared with net income of $119 million in the third quarter of 2021.

Revenue increased to $1.1 billion compared with $1 billion in the prior-year quarter, says an official release. "Volumes in the third quarter of 2022 totalled 79,274 block hours compared with 90,363 in the third quarter of 2021."

Higher airline operations revenue primarily reflected an increase in the average rate per block hour, partially offset by a reduction in block hours flown. The higher average rate per block hour was primarily due to higher fuel prices and higher yields (net of fuel), including the impact of new and extended long-term contracts and increased cargo flying for the AMC, the release added.

"We continued to see strong demand for our services during the third quarter," says John W. Dietrich, Worldwide President and Chief Executive Officer, Atlas Air. "We were also pleased to announce a long-term ACMI (aircraft, crew, maintenance and insurance) agreement under which all four of our new and incoming 777-200 freighters are placed with MSC Mediterranean Shipping Company SA.

"Notwithstanding this strong demand, our third-quarter performance was impacted by operational disruptions related to an increase in Covid-19 cases, particularly in July and August, as well as the effects of Hurricane Ian at the end of the quarter. I would like to thank our Atlas team for working together through these challenges on behalf of our customers.

" For the first nine months, net income declined to $230 million compared with $317 million in the prior-year period. Revenue was up 14 percent to $3.3 billion.

Atlas Air took delivery of the first two of the four new 747-8Fs in May and October. "Based on the updated timeline provided by Boeing, the remaining two aircraft are anticipated to be delivered during the fourth quarter of 2022 and the first quarter of 2023. As announced in February 2022, all four of these aircraft are placed with customers under long-term agreements." Transaction update "As previously announced on August 4, 2022, Atlas Air Worldwide entered into a definitive agreement to be acquired by an investor group led by funds managed by affiliates of Apollo Global Management, Inc., together with investment affiliates of J.F. Lehman & Company, LLC and Hill City Capital LP. The Company continues to expect to complete this transaction in the fourth quarter 2022 or the first quarter 2023."