Earnings soar at Atlas Air in 2Q
Atlas Air Worldwide Holdings Inc., the Purchase-based air cargo carrier, continued to face an uncertain market for air freight shipments in a weak economy during the second quarter.
But the company reported a major jump in quarterly profits as the result of cost cuts, efficiency gains and the retirement of older aircraft.
Net income of $11.3 million, or 54 cents a share, during the quarter jumped from net income of $1.5 million, or 7 cents a share, a year earlier. Revenues of $240 million fell from $438.8 million a year earlier.
“Our strong second-quarter results, like our record first-quarter performance, reflect the actions we have taken to transform our business, improve efficiency and minimize our commercial risk,” William J. Flynn, president and chief executive officer, said in a written statement.
Atlas said that profits rose despite the company’s decision to operate a smaller aircraft fleet. Atlas also faced an increase in aircraft maintenance costs and a reduction in charter fuel prices.
Flynn said that global airfreight traffic has shown signs of “incremental improvement” in recent months but added that the timing is “uncertain” for an economic recovery. The quarterly results of Atlas provides a good window to economic activity since its aircraft fleet carries cargo shipments around the world.