Uptick in March boosts Atlas Air first quarter profit 7pc to US$13.6 million
2012 05 09
- Details
GLOBAL provider of outsourced aircraft and aviation operating services, Atlas Air Worldwide Holdings, is on track to meet its 2012 expectations after a rebound in March offset a weak January and February, Air Cargo World reported.
Atlas customers flew 11 per cent more than the minimum block hours in March. The strong first-quarter numbers are also due to a new timeline for aircraft engine maintenance; upkeep that was expected to take place during the first quarter will now happen in the next three months.
Atlas Air reported an adjusted net income of US$13.6 million during the first quarter compared to an adjusted net income of $12.7 million in Q1 2011. The company reported a net income of $12.8 million for the first three months of the year compared to $10.5 million in the same period last year.
Operating revenues during the quarter rose 21 per cent to $359.3 million compared to the same period last year. Total block hours increased by eight per cent. ACMI revenues rose by $8.7 million compared to Q1 2011, on the back of two new services for DHL Express. Atlas Air also recently signed a multiyear ACMI deal with Etihad Airways for one Boeing 747-400 freighter, which will commence in June. This will be the first 747-400F in Etihad Cargo's fleet.
Operating expenses rose 20 per cent from the first quarter of last year to $338.7 million because of fuel and an uptick in labour costs. Jet fuel prices rose 28 per cent when compared to the same period in 2011. A wage increase, a ramp up in total block-hours flown and a few new hires pumped employee costs up 15 per cent, year over year.
"Earnings in the first quarter of 2012 were well above our expectations," William Flynn, the firm's president and CEO, said. "The improvement was primarily due to a substantial pickup in the commercial airfreight market during March 2012. Volumes and rates improved dramatically compared with January and February, and we were well-positioned to help customers respond to an increase in demand for airfreight capacity."
He added that this increase was fuelled by high-tech project launches out of Asia and a demand for time-sensitive shipments of auto parts and pharmaceuticals.
Source Shipping Gazette - Daily Shipping News
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