Atlas Air brings back to service another B747 as revenues rise
NASDAQ-LISTED Atlas Air Worldwide Holdings is to reactivate another B747 freighter after improvements in its third quarter figures thanks in part to expanded its e-commerce operations with Amazon and Alibaba
NASDAQ-LISTED Atlas Air Worldwide Holdings is to reactivate another B747 freighter after improvements in its third quarter figures thanks in part to expanded its e-commerce operations with Amazon and Alibaba.
The lessor, based in Purchase in Harrison, New York, reported that third-quarter revenues increased by 24.9 per cent year on year to US$809.9 million and net income increased 23.5 per cent year on year to $74 million.
Volumes in the third quarter of 2020 increased to 90,528 block hours compared with 79,310 in the third quarter of 2019.
Chief executive John Dietrich explained: 'We continue to broaden our customer base and grow with existing customers to maximise market opportunities. We further increased our roster of long-term charter customers, including the addition of Cainiao, the logistics arm of Alibaba, as well as expanding with HP Inc and several large global freight forwarders.
'We also expanded operations for Amazon, where we began CMI flying three additional [Boeing] 737 freighters since September. We are now operating eight B737s for Amazon, complementing the large fleet of B767s that we have with them.
'Importantly, these long-term customer agreements provide secure and attractive earnings streams and deepen our strategic position in the fast-growing e-commerce sector, as well as in important global markets like China and South America.'
Looking to the fourth quarter, and subject to any material Covid-19 developments, the lessor anticipates 'solid volumes and yields' driven by continued e-commerce growth and end-of-the-year airfreight demand, coupled with the reduction of available cargo capacity in the market.
'To meet customer demand, we are reactivating our fourth 747 freighter that had been previously parked,' Mr Dietrich said. 'This will add to the three 747 freighters and the 777 we placed back into service during the second quarter of 2020.'