ATLAS AIR is predicting longer-term changes to the air freight market, as passenger flying and cargo routes diverge, reports London's Loadstar.
The carrier is betting that belly operations will not return to pre-Covid crisis levels.
'We expect passenger networks will look different than prior to the pandemic and will favour more leisure and point-to-point flying,' said atlas Air chief executive John Dietrich.
'This will result in more need for dedicated freighters in major cargo trade lanes,' said Mr Dietrich.
'Importantly a new customer base including more manufacturers and freight forwarders are now turning to dedicated freighters due to the resiliency of air freight networks compared to the vulnerability of passenger networks.'
The route has always been less profitable than the transpacific.
Said Atlas Air CFO Spencer Schwartz: 'The passenger-flying transpacific will be the last flying to come back,'
'We don't think that will be at pre-pandemic levels for quite some time. And then even when that flying does return, it's probably not going to look the same as what it looked like prior to the pandemic.'
Atlas gained a further 10 contracts in the first quarter, taking its long-term charter contracts to 25 in total.
Meanwhile, revenues grew 16 per cent to $1 billion in the quarter, while Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) were up 11.8 per cent to $202.8 million.
Net income grew 23 per cent to $88.8 million, despite volumes, on a block hour basis, falling six per cent.
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The carrier is betting that belly operations will not return to pre-Covid crisis levels.
'We expect passenger networks will look different than prior to the pandemic and will favour more leisure and point-to-point flying,' said atlas Air chief executive John Dietrich.
'This will result in more need for dedicated freighters in major cargo trade lanes,' said Mr Dietrich.
'Importantly a new customer base including more manufacturers and freight forwarders are now turning to dedicated freighters due to the resiliency of air freight networks compared to the vulnerability of passenger networks.'
The route has always been less profitable than the transpacific.
Said Atlas Air CFO Spencer Schwartz: 'The passenger-flying transpacific will be the last flying to come back,'
'We don't think that will be at pre-pandemic levels for quite some time. And then even when that flying does return, it's probably not going to look the same as what it looked like prior to the pandemic.'
Atlas gained a further 10 contracts in the first quarter, taking its long-term charter contracts to 25 in total.
Meanwhile, revenues grew 16 per cent to $1 billion in the quarter, while Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) were up 11.8 per cent to $202.8 million.
Net income grew 23 per cent to $88.8 million, despite volumes, on a block hour basis, falling six per cent.
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