ATLAS AIR REPORTS 17% RISE IN PROFIT

ATLAS AIR REPORTS 17% RISE IN PROFIT

   Atlas Air, the U.S.-based airline that flies freighters for other airlines, reported a 17-percent rise in net income to $12 million, marking another record quarter for the carrier.

   Atlas said operating income rose 18 percent to $43.2 million on a 21-percent increase in revenue of $166.4 million.

   “This represents our ninth consecutive earnings record for a quarterly period,” said Richard H. Shuyler, executive vice president at Atlas. “Our capacity increased 11 percent from last year, and our block hour production grew by an even greater 22 percent, resulting from a 9-percent improvement in aircraft productivity.”

   Rising fuel prices do not hurt Atlas as they do other airlines. Under the terms of its ACMI lease contracts, the carrier provides just aircraft, crew, maintenance and insurance. Atlas customers pay for fuel and sell the capacity in most cases.

   Michael Chowdry, Atlas’ chairman, chief executive officer and president, said the all-cargo airline is benefiting from rising demand for international air freight services and a general reduction in freight capacity.

“The full impact of Stage III noise regulations, along with continuing industry fleet rationalization, is actually reducing long-haul freight capacity,” Chowdry said. “This bodes well for Atlas, as the world’s largest 747 freighter operator, and further accentuates our expansion needs. With three firm aircraft deliveries this year, and efforts underway to acquire additional aircraft for later this year, we are committed to fulfilling the existing capacity needs and future growth requirements of our market.”