ATW Daily News

Atlas Air swings to first-quarter loss

Friday May 9, 2008

Atlas Air and Polar Air Cargo parent Atlas Air Worldwide Holdings reported a first-quarter net loss of $5.3 million, reversed from a profit of $6.2 million in the year-ago period, but insisted the result reflects high fuel costs from which it largely will be insulated when Polar's blocked-space agreement with DHL begins later this year. "Our business fundamentals are solid and our performance is on track. . .apart from the impact of fuel prices," President and CEO William Flynn said. "Record commercial fuel prices, up nearly 50% over last year, had a substantial impact on our [Polar] scheduled services results during the first quarter." But he noted that "our direct exposure to fuel costs will be largely eliminated in late October when [Polar] commences flying under its long-term blocked space agreement with DHL Express" (ATWOnline, Feb. 28). First-quarter revenue increased 5% to $373 million while expenses lifted 11.2% to $375.6 million, producing an operating loss of $2.6 million, reversed from a $17.5 million operating profit in the year-ago period.

Other headlines: