Atlas Air Worldwide Holdings (AAWW) saw first-quarter operating revenues of USD 680 million, while adjusted income for the period was up 14.7 per cent to USD 27.3 million with a 29.1 per cent rise in EBITA to USD 121.1 million.
On a non-adjusted basis the company reported a loss of USD 29.7 million as a result of an unrealised loss on outstanding warrants of USD 46.6 million.
The company pointed to its focus on express, e-commerce and fast-growing markets for its healthy results.
“Our first-quarter results exceeded our expectations,” said Atlas Air Worldwide president and chief executive William Flynn. “We are benefitting from a full year of flying the 16 aircraft we added during 2018 for customers such as Amazon, Asiana Cargo, DHL Express, Inditex and SF Express, as well as the three aircraft for Nippon Cargo Airlines that we are adding this year.
“Our focus on express, e-commerce and fast-growing markets provides a solid foundation to deliver continued business and earnings growth this year.”
Flynn also noted the group’s expanding relationship with Amazon, announced in March, saying Atlas is scheduled to begin flying five B737-800 aircraft on a CMI basis for Amazon this year, including two starting this month and up to 15 more by May 2021. This represents the first B737s in the e-commerce company’s fleet, which until now, has exclusively been operated with B767s.
“This opportunity provides a path to continued expansion in a desirable aircraft type, and it will enhance scale in the B737 platform we operate through Southern Air,” Flynn says.
“Reflecting the scale and scope of our domestic and worldwide operations, we continue to anticipate that our adjusted net income in 2019 will grow by a mid- to upper-single-digit percentage compared with the record adjusted net income of USD 204.3 million that we reported in 2018.” He notes that in the current outlook its important to note the start-up expenses to be incurred this year around the B737 CMI service.
The first quarter of 2019 saw block hours increase 16 per cent to 77,061, reflecting the increase in B767 flying for Amazon, incremental B777 flying for DHL and the start-up of B747-400 flying for new customers.