The air cargo services provider reported an income from continuing operations, net of taxes, of $39 million compared with the $20.9 million in the same period in 2016.
Atlas Air Worldwide Holdings, Inc. posted an income from continuing operations, net of taxes, of $39 million for the second quarter of 2017, a 17 percent increase over the same period last year, according to the aircraft lessor and aviation operation service provider’s most recent financial statements.
On an adjusted basis, income from continuing operations, net of taxes, totaled $29.1 million for the quarter compared with $20.2 million in the second quarter of 2016.
Diluted earnings per share from continuing operations stood at $0.92 for the second quarter, compared with an EPS loss of $0.26 for the same period in 2016, reflecting the impact of warrant accounting and transaction-related expenses, Atlas Air said.
For the first six months of the year, income from continuing operations totaled $39.1 million, while diluted EPS from continuing operations stood at $1.13 per share compared with a loss of $0.24 per share in first half 2016.
“Earnings growth in the second quarter reflected a 17 percent increase in revenue, 15 percent increase in block hours, and higher direct contribution in all of our segments,” said President and Chief Executive Officer William J. Flynn. “Our growth also reflected an increase in aircraft utilization and a rise in commercial charter yields. During the quarter, we started flying for Cathay Pacific and Yangtze River Airlines and added four 767-300 freighters for Amazon, including our fifth and sixth aircraft in June.
“We are experiencing good momentum in our business, and we expect that to carry through 2017, into 2018 and beyond,” he added. “As a result, we are increasing our full-year 2017 outlook. We anticipate that our adjusted income from continuing operations, net of taxes, will grow by a percentage in the mid-teens this year, approximately double the midpoint of our previous outlook.”
The company’s Higher Charter segment saw improved commercial cargo yields, lower costs and increased demand. Dry leasing segment benefited from a reduction I interest expense and the placement of six 767-300 converted freighter aircraft with Amazon starting last August, said the company.
According to Atlas Air, higher ACMI contribution in the second quarter of 2017 was driven by an increase in flying. The company also entered into an ACMI agreement with Hong Kong Air Cargo to operate three 747-400s. The first aircraft will begin flying in September between Asia and the U.S., while the second and third aircraft are expected to commence operation during 2018.
“We also continue to move more deeply into the faster-growing express and e-commerce markets,” said Flynn. “More than 70 percent of our current freighters operate for customers in these markets, and that percentage will increase as we ramp up from six aircraft for Amazon currently to an expected 20 by the end of 2018.
Looking ahead, current demand and services for Asiana Cargo, Cathay Pacific Cargo, FedEx, Hong Kong Air Cargo, Nippon Cargo Airlines and Yangtze River Airlines, the initial accretion from Amazon operations, and the first full year of contribution from Southern Air “will provide a strong foundation for earnings growth,” said the company.
Atlas Air Holdings posts 17% Q2 earnings growth
