- Joe Breitfeller
Atlas Air Worldwide Reports First Quarter 2021 Profit of $90 Million on 34 Percent Revenue Increase
Atlas Air Worldwide has reported a first quarter 2021 net profit of $90 million or $3.05 per diluted share on a year-over-year revenue increase of 34 percent to $861 million. The carrier closed the quarter with cash, cash equivalents and restricted cash totaling $714 million.
On Wednesday (May 5, 2021), Atlas Air Worldwide Holdings, Inc. reported their first quarter 2021 financial results. The airline reported a quarterly net income of $90 million or $3.05 per diluted share, compared to a net profit of $23.4 million or $0.90/share during the first quarter of 2020. The company’s first quarter revenue increased 34 percent year-over-year to $861 million, while block hours increased to 88,523 versus 73,247 during Q1 2020. The company’s revenue benefited by the reactivation of four Boeing 747-400 freighters throughout 2020, as well as a 777-200 that was previously operated in Atlas’ Dry Leasing business.
In Wednesday’s announcement, Atlas Air Worldwide’s President and Chief Executive Officer, John W. Dietrich, said in part,
“Our performance was driven by the strength and flexibility of our global business model and our team continuing to capitalize on the current airfreight environment, with demand and yields that are well above typical seasonal levels. Our results also benefited from flying four 747 freighters and one 777 freighter that we reintroduced to our fleet throughout 2020 to serve customer demand. I would like to thank our team for continuing to deliver safe, high-quality service for our customers in this very challenging operating environment. We flexed our global network and increased aircraft utilization to match airfreight demand. We also positioned ourselves for the future by entering into and extending numerous long-term charter agreements with strategic customers.
“We are off to a very good start in 2021 and are seeing continued business momentum in the second quarter. We are closely monitoring the market and leveraging the diversity of our business model. This includes being prepared to capitalize on global market conditions as well as being able to successfully adjust to any changes.
“With the strong global demand for airfreight outpacing air cargo supply, we anticipate airfreight demand and yields to remain strong, with capacity on long-haul trade lanes remaining tight. International passenger flying on widebody aircraft has been slow to recover, and will likely be last to return as countries continue to struggle with COVID-19 and many borders remain closed. Recent passenger air traffic has largely been driven by pent-up demand for domestic and regional leisure travel with smaller-gauge aircraft, which is less impactful to international airfreight…”
As of March 31, 2021, Atlas Air Worldwide had cash, cash equivalents and restricted cash totaling $714 million, down from $856.3 million at December 31, 2020. The change is attributable to cash used for investing and financing activities including CAPEX for flight equipment and modifications, pre-delivery payments for 747-8F aircraft, spare engines and GEnx engine overhauls and performance upgrade kits.
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 Wednesday afternoon (5/5/21), shares in Atlas Air Worldwide Holdings, Inc. (NASDAQ: AAWW) were 2.30% higher at $71.24/share (3:15 PM EST).
Source: Atlas Air Worldwide