Atlas Air Q2 volume revenue at record high, but fails to prevent a loss
AIRCRAFT lessor Atlas Air Worldwide Holdings posted a second quarter net loss of US$21
AIRCRAFT lessor Atlas Air Worldwide Holdings posted a second quarter net loss of US$21.1 million compared with a $38.9 million profit last year despite revenues rising 15.8 per cent year on year to $666.1 million.
The company attributed drop in earnings to an unrealised loss on outstanding warrants of $50 million in the second quarter of 2018 compared with an unrealised gain on outstanding warrants of $13.8 million last year.
A 19 per cent increase in volumes to 72,660 block hours drove up revenues. The block hours were up on the back of increased Boeing 767 flying for Amazon and several new B747-400 freighter wins.
On an adjusted basis, the company said income from operations was up 70.8 per cent year on year to $49.7 million
Said Atlas CEO Bill Flynn: 'For the full year, we now expect our revenue to exceed $2.6 billion. We project adjusted EBITDA to increase to more than $520 million. And we anticipate our full-year adjusted net income will grow by 45 per cent to 50 per cent compared with 2017, up from our prior outlook of 35 per cent to 40 per cent growth.'
The company's aircraft, crew, maintenance and insurance (ACMI) segment saw its contribution for the second quarter remain unchanged as increased block hours and rates were offset by higher heavy maintenance costs and amortisation of deferred maintenance costs.
Higher charter segment contribution during the second quarter was mainly driven by growth in military cargo and passenger demand, an increase in commercial cargo volumes and higher aircraft utilisation, partially offset by the redeployment of B747-8 aircraft to the ACMI segment.
In dry leasing, higher segment contribution primarily reflected the placement of additional B767-300 converted freighter aircraft throughout the second half of 2017 and first half of 2018, as well as the placement of a B777-200 freighter in early 2018.