• Joe Breitfeller

Atlas Air Reports Fourth Quarter Net Income of $184 Million, FY 2020 Net Income of $360 Million

Atlas Air Worldwide reported a fourth quarter net income of $184 million or $6.15 per diluted share and a full year 2020 net income of $360 million or $13.50 per diluted share.


Atlas Air Boeing 747 Freighter - Courtesy Atlas Air Worldwide

On Thursday (February 18, 2021), Atlas Air Worldwide reported their fourth quarter and full year 2020 financial results. The company reported a fourth quarter net income of $184 million or $6.15 per diluted share, compared to a net loss of $410 million for Q4 2019, primarily attributable to a special charge of $616 million. Fourth quarter revenue grew to $933 million versus $747 million during the same period in 2019. For the full year, Atlas reported a net income of $360 million or $13.50 per diluted share, compared to a net loss of $293 million for 2019, resulting from a noncash special charge of $638 million, partially offset by an unrealized gain on financial instruments of $75 million. Full year 2020 revenue increased to $3.21 billion, compared to $2.74 billion during FY 2019. I n Thursday’s announcement, Atlas Air Worldwide’s President and Chief Executive Officer, John Dietrich, said,


“We finished this unprecedented year on a strong note, with financial and operating results that exceeded our expectations. I’d like to thank everyone at Atlas for stepping up to deliver an extraordinary peak season and full year for our business and our customers. In the face of unrelenting operational complexities driven by the COVID-19 pandemic, we added widebody capacity, increased aircraft utilization and grew block hours to carry historic volumes, including essential goods that businesses, communities and individuals require as well as holiday e-commerce packages. We are leveraging our unrivaled portfolio of assets and the scale of our global network. We are also continuing to diversify our customer base and have entered into numerous long-term charter agreements with strategic customers, such as Cainiao, Flexport and HP Inc. These agreements will provide reliable and attractive revenue streams for the years ahead.


“Providing our customers with modern, fuel-efficient aircraft has been a longstanding priority at Atlas, and we were excited to announce that we ordered four new 747-8Fs from Boeing. This acquisition underscores that commitment and also demonstrates our focus on environmental stewardship through the reduction of aircraft noise, emissions and fuel consumption. The 747-8F provides 20% higher payload capacity and 16% lower fuel consumption than the very capable 747-400F, and has 25% higher capacity than the new-technology 777-200LRF. In addition, the advanced engines on the 747-8F reduce noise by approximately 30% compared to the previous generation of aircraft. As the world’s largest 747 freighter operator, the -8F is core to our business, and complements our diverse fleet of 747-400s, 777s, 767s and 737s. We are expecting delivery of these new aircraft from May through October 2022, and they will play a key role in advancing Atlas’ strategic growth plans for decades to come.


“The strong demand for our aircraft and services has continued into this quarter. We expect to fly approximately 85,000 block hours in the first quarter of 2021, with revenue of approximately $820 million, and adjusted EBITDA of about $150 million. In addition, we expect first-quarter 2021 adjusted net income to grow approximately 60% to 65% compared with adjusted net income of $29.9 million in the first quarter of 2020. Due to ongoing uncertainty related to the pandemic and associated market dynamics, including ever-changing border restrictions, new variants of COVID-19 and surges in cases globally, we are not providing a full-year 2021 earnings outlook at this time.”


At December 31, 2020, Atlas Air had $856 million in cash, cash equivalents, sort term investments and restricted cash, compared to $114 million at December 31, 2019. The improved cash balance is attributable to improved operating activities and funds received under the U.S. Cares Act Payroll Support Program (PSP). Net cash used for 2020 CAPEX included payments for flight equipment, modifications, spare engines and GEnx engine performance upgrade kits, partially offset by proceeds from the disposal of nonessential aircraft.


On October 9, 2020, Amazon elected a cashless exercise with respect to 3,607,477 shares vested under a Warrant issued in 2016, resulting in the acquisition of 1,375,421 AAWW shares. Amazon further elected a cashless exercise with respect to 4,150,529 shares vested under Warrants issued in 2016 on January 27, 2021, resulting in the acquisition of an additional 1,280,450 shares in AAWW.


Purchase, New York-based Atlas Air Worldwide Holdings, Inc. (NASDAQ: AAWW) is a leading global provider of third-party aircraft and aviation operating services. Company subsidiaries include Atlas Air, Southern Air Holdings and Titan Aviation Holdings. Additionally, the company owns a majority stake in Polar Air Cargo Worldwide. Together, the Atlas Air family of companies operate the world’s largest Boeing 747 freighter fleet. The company also offers their customers a wide selection of Boeing 747, 777, 767 and 737 aircraft for domestic, regional and international cargo and passenger operations.


In trading Thursday afternoon (2/18/21), shares in Atlas Air Worldwide Holdings, Inc. (NASDAQ: AAWW) were 2.04% higher at $57.09/share (3:50 PM EST).



Source: Atlas Air Worldwide