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Atlas Air Worldwide Holdings (AAWW) reported fourth-quarter net income up 46.7% y-o-y to $41.6 million as revenues rose 11.9% to $359.7 million. Operating income for the quarter was up 7.3% to $90.9 million. For the full year, AAWW reported net income up 82.3% to $141.8 million, as revenues rose 26.0% to $1.34 billion and operating income jumped 57.5% to $355.1 million.
After adjusting for various one-time gains and losses, Atlas’ net income for the year was a record $150.0 million.
The biggest gains in the fourth quarter came in the company’s core ACMI segment, where revenue was up 29.7% to $159.9 million. This was partly the result of a new contract with TNT and the expansion of Panalpina’s contract from one freighter to two, and also of increased CMI (Crew Maintenance, & Insurance) flying of passenger aircraft for SonAir and Large Cargo Freighters for Boeing. But in addition to the new business, AAWW said its ACMI customers continued the trend of flying more than their minimum contracted block hours – averaging 7% above minimum for the quarter and 8% for the full year.
For the full year, AAWW’s commercial charter business gains were truly impressive, with block hours up 38%, revenue up almost 80% to $384 million, and operating income up 181% to $118 million. The company said the higher block-hour rates in the fourth quarter were the result of continued strong demand for charters in Asian and Latin American markets. Military charter business also did well for the full year, but declined in the fourth quarter as demand for flying in support of US military activities in Afghanistan moderated.