ATW Daily News

Despite sinking profits, Atlas promises better results

Thursday November 9, 2006

Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, reported third-quarter net income of $7.1 million, significantly narrowed from a $29.9 million profit in the year-ago quarter.

The company called the three months ended Sept. 30 a "transition quarter" and said fourth-quarter pre-tax income will exceed $60 million, up from $45 million in last year's final quarter. It blamed the third-quarter drop on lower military charter "heavy-lift" operations, saying such activity was "unusually high" last year and was back to more normal levels this year. Higher fuel costs also affected earnings negatively, AAWW said.

Operating revenues decreased 10.8% to $361.1 million as expenses lowered 2.6% to $328.2 million, producing operating income of $32.9 million, narrowed 51.6% from $68 million in the year-ago quarter. Scheduled service traffic rose 11.8% to 384.1 million RTMs on a 17.6% lift in scheduled capacity to 610.3 million ATMs, producing a load factor of 62.9%, down 3.3 points.

Noting the recent partial sale of Polar to DHL (ATWOnline, Oct. 17), President and CEO William Flynn predicted pre-tax earnings for full-year 2007 will exceed $110 million. "We have strengthened our scheduled-service business through network optimization and have leveraged Polar Air Cargo's strategic route structure, optimal assets and high service reliability," he said.

Separately, Polar will launch twice-weekly flights to Beijing on Nov. 11.

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