Atlas Air enjoyed record fourth-quarter and full-year 2017 revenue, record fourth-quarter earnings and robust full-year earnings growth, and a continued strong outlook in 2018, says the company.
“[Last year] was an exciting year for Atlas and we expect that to continue in 2018,” said Atlas president and CEO William Flynn.
Highlights of the year include:
- Record 4Q reported income increased to $209.5 million from $28.7 million, full-year increased to $224.3 million from $42.6 million
- Record 4Q adjusted income of $66.6 million, up 13 per cent; Full-year climbed 17per cent to $133.7 million
- Mid-20% earnings growth expected in 2018
- Results driven by strategic execution, strong demand and tax reform
“The strategic initiatives that we have put in place over many years have transformed our company. Our focus on express, e-commerce and fast-growing Asian markets has broadened our customer base and fleet,” says Flynn. “As a result, we were well-positioned to capitalize on market dynamics and deliver fourth-quarter and full-year volumes, revenues, EBITDA and net income that grew sharply compared to the prior-year.
“In addition, our fourth-quarter and full-year results benefited from the passage of the US Tax Cuts and Jobs Act in late December, which generated a significant gain related to the revaluation of our net deferred tax liabilities. We expect the new tax legislation to have a positive impact on economic activity and corporate growth. On passage of the law, we were pleased to provide a one-time bonus of $1,000 to our global personnel in recognition of their hard work and commitment to the company’s growth.”
Turning to 2018 and beyond, Flynn stated: “We are operating in a strong airfreight environment, underpinned by global economic growth. We see tremendous opportunity for continued growth in the express and e-commerce markets, fueled by a bourgeoning middle class with higher levels of disposable income. Further globalization will require expansive and time-definite air networks to facilitate the international flow of goods.
“From a regional perspective, we believe Asia is key. It is an important geography to global trade, the source of 40 per cent of global airfreight demand, and the main contributor to the expanding global middle class.
“In addition to the demand we are seeing for our aircraft and services, we are capitalizing on the quality, scale and scope of our operations to drive our revenues and earnings to greater levels. As a result, we expect our adjusted net income to grow by a mid-twenty-per cent level in 2018 compared with 2017, including the benefit of a lower corporate income tax rate. By comparison, even without any benefit from tax reform, we would have expected our 2018 adjusted net income to grow by a teens percentage.”