Charter, ACMI drives profit up 10% at Atlas Air

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Atlas Air made a net profit of $106.7 million in 2014, helped by a strong fourth quarter (Q4), with growth in all business areas, but particularly in dry leasing.

The aircraft leasing company made the largest profit of the year in the fourth quarter, of $41.6 million, up from $4 million in the first quarter (Q1), $29 million in the second (Q2) and $27.5 million in the third (Q3). The full year profit of $106.7 million was up from $93.8 million in 2013. It was also an improvement on Q4 of 2013, when it made a profit of $29.9 million.

 

Atlas Air Worldwide president and chief executive officer, William Flynn, says: “Both operationally and financially, our fourth quarter and full year performance stemmed from the leadership and strength of our ACMI [aircraft, crew, maintenance and insurance] and charter business, the growth of our dry leasing and platform, and ongoing efforts to drive efficiency.”

Dry leasing saw the largest increase, with revenue rising from $35.1 million in 2013 to $100 million in 2014. In Q4, it saw a year-on-year (YOY) rise to $24.4 million, from $13.3 million in 2013. Dry leasing revenue in the fourth quarter was the lowest of the year, down from $24.6 million in Q1, $25.5 million in Q2 and $25.4 million in Q3. Charter was the biggest business area, with revenue of $906.6 million in 2014, up from $852.4 million in 2013. In Q4, charter revenue was $251.2 million, a slight YOY increase, from $251.1 million.

It has risen in each period of 2014, from $114.5 million in Q1, to $133.9 million in Q2 and $143 million in Q3. Revenue from ACMI rose from $755 million in 2013 to $778 million in 2014. In Q4, ACMI revenue $209.1 million, up from $202.3 million in the same period of 2013.

This is a recovery from the decline seen earlier in the year, from $198.1 million in Q1, to $186.7 million in Q2 and $184 million in Q3.  Total operating revenue rose from $1.6 billion in 2013 to $1.8 billion in 2014. Revenue in the fourth quarter was $488.8 million, the highest of the year. In Q1, revenue was $403.3 million, rising to $441.1 million in Q2 and $465.8 million in Q3.

Atlas’ future profits will be aided by a deal with Panalpina. From March, Atlas Air will provide more than 200 scheduled Boeing 747-400 Freighter charter flights per year for a five-year deal. Panalpina use the 747-400 for a Hong Kong to Huntsville (US) route.

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