ATLAS AIR REPORTS 4TH-QUARTER, YEAR-END LOSS

ATLAS AIR REPORTS 4TH-QUARTER, YEAR-END LOSS

   Atlas Air Worldwide Holdings Inc., the parent company of Atlas Air Inc. and Polar Air Cargo, reported a fourth-quarter loss of $8.1 million and a full-year loss of $62.9 million.

   The net results included $44.9 million in after-tax aircraft impairment charges, $8.0 million in additional expenses related to the newly consolidated corporate full year tax provision, and $24.7 million in federal payments under the U.S. Federal Air Transportation and Safety Stabilization Act.

   Excluding the one-time charges, net income would have been $12.7 million. Including the $10.1 million in federal aid that was previously announced to be included in the fourth quarter, net profit would have been $19.1 million. The results compare to fourth-quarter 2000 net profit of $31.2 million.

   The $44.9-million charge relates to six B-747-200 aircraft that Atlas had parked and represents the fair market values experienced as a result of the Sept. 11 terrorist attacks.

   'After adjusting for the quarter's unusual items, it is apparent that both Atlas and Polar performed well, particularly in light of the even more difficult market conditions that have existed since Sept. 11,' said Richard Shuyler, chief executive officer of Atlas Air Worldwide Holdings. 'This is attributable to the naturally stronger seasonality of the fourth quarter, and to the high level of military flying undertaken by both companies in support of the United States' war on terrorism.'

   Total fourth-quarter operating revenues, including Polar revenues since Nov. 1, increased 27 percent to $283.8 million. Atlas Air's 18-percent decline in total block hours was offset by inclusion of Polar's hours since Nov. 1.

   Operating costs increased to $265.1 million from $154.5 million in the year-earlier period, reflecting the inclusion of Polar's operating costs and the previously mentioned impairment charge.

   For 2001, the operating loss was $62.9 million, including unusual and non-recurring items, compared to a net profit of    $85.3 million in 2000. Revenue was $763.8 million in 2001, down from $790.5 million in 2000.

   Atlas Air provides freighter services, specializing in charters of its Boeing 747 fleet, including aircraft, crew, maintenance and insurance. Polar Air Cargo provides time-definite, airport-to-airport scheduled air-freight service, using Boeing 747 aircraft.