ATLAS AIR REPORTS $4.2-MILLION LOSS, COMPLETES POLAR ACQUISITION

ATLAS AIR REPORTS $4.2-MILLION LOSS, COMPLETES POLAR ACQUISITION

   Atlas Air Worldwide Holdings Inc., the holding company for Atlas Air, Inc., on Friday reported a third quarter net loss of $4.2 million, compared to net income of $23.1 million for the third quarter of 2000.

   Subsequent to the quarter end, Atlas received $10.1 million from the federal government as its part of the first series of payments under its Air Transportation Safety and System Stabilization Act.

   Total operating revenue for the quarter declined 28% to $150.7 million. Operating profit for the quarter was $9.3 million, versus $62.0 million in the third quarter of 2000.

   Net income for the nine months ended September 30, 201 was $13.4 million versus $54.1 million. Operating revenues totaled $480.1 million, a 15.3% decline from the comparable period of 2000.

   Also Friday, Atlas Air said it has completed the acquisition of Polar Air Cargo from GE Capital Aviation Services, a GE Capital company. The stated purchase price of $84 million was effectively reduced by $30 million.

   “Certain changes to the terms of the transaction were made to better reflect the current economic environment and help ensure ample liquidity,” said Richard Shuyler, chief executive officer for Atlas Air and Atlas Air Worldwide Holdings.

   The company said it expects to continue full utilization of Polar’s operating fleet of 17 B747 freighters through the remainder of this year’s peak season period. Thereafter, Atlas intends to resize Polar’s fleet, focusing on its fleet of four B747-400 aircraft and a yet to be determined number of B747-200 aircraft, operating in scheduled service. Up to eight B747-100 aircraft in Polar’s fleet will be permanently parked.

   “Polar’s valuable Japanese route authorities and its fleet of B747-400 freighter aircraft will complement Atlas Air’s capabilities and offer new opportunities to customers of both companies,” Shuyler said “Our current plan is to keep the Atlas Air and Polar brands separate, but, we also expect to achieve significant synergies between the two companies.”