Atlas Air Worldwide Holdings reported third-quarter net income up 16.2% y-o-y to $26 million, as revenue rose 14.9% to $486 million. Operating income (EBIT) for the quarter was up 5.7% to $61 million.
The chart at right gives a detailed look at the company’s financial and operational performance, but here are some highlights by operating segment:
- Block hours in the company’s core ACMI/CMI segment were down 2.5% from 3Q13, and total ACMI/CMI revenue declined 2.9% to $184 million. Direct contribution from the segment fell 13.4% to $54 million, as “lower 747-400 flying by certain ACMI customers” and higher maintenance expenses on the 747-8Fs more than offset an increase in revenue from 747-8F and CMI flying.
- Commercial Charter revenue was up 36.8% to $143 million, as block hours increased 33.9%. The segment moved into profitability, providing a direct contribution of $571,000, up from a loss of almost $4 million in 3Q13. Atlas said charter operations in the quarter “benefited from the broad-based uptick in demand, partially offset by additional travel and ground handling expenses from flying to high-cost locations.”
- AMC Charter block hours were up for both cargo and passenger operations (23.6% and 21.5%, respectively), driven by “stronger-than-expected demand for cargo flying and incremental passenger flying, as a result of former competitors exiting the AMC charter market.” Commenting on the AMC results, CEO Bill Flynn said the company now accounted for over 50% all US AMC charter flying. Direct contribution from the segment was up 19.4% to $18 million.
- Dry Leasing revenue more than doubled in the quarter to $25 million, reflecting the addition of five 777Fs, all with leases attached, this year. Direct contribution from the Dry Leasing segment was up 86.3% to $9 million.
In other Atlas news, the company said it placed a 747-400F into ACMI service for Abu Dhabi-based Etihad Airways [FAT 001911]. This brings the number of freighters Atlas Air operates for Etihad to three (one 747-8F and two 747-400Fs) and the total number of Atlas 747 freighters in ACMI contracts to twenty-two (nine 747-8Fs and thirteen 747-400Fs).
Atlas also confirmed an upcoming expansion of its CMI flying operations for DHL Express in North America, saying it would add four more 767-200Fs to the five it already operates in North America for the German integrator, beginning in the first quarter of 2015.