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  • Joe Breitfeller

Atlas Air Worldwide Reports Third Quarter Net Income of $120 Million on Revenue of $1.02 Billion

Atlas Air Worldwide has reported a third quarter 2021 net income of $119.5 million or $3.91 per diluted share, compared to a net income of $74.1 million or $2.78 per diluted share in Q3 2020. The company's revenue increased year-over-year to a record $1.02 billion.


Atlas Air Reports Third Quarter 2021 Financial Results - Courtesy Atlas Air Worldwide

On Wednesday (November 3, 2021), Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) announced their third quarter financial results for the period ending September 30, 2021. The company reported a third quarter net income of $119.5 million or $3.91 per diluted share, compared to $74.1 million or $2.78 per diluted share during the third quarter of 2020. Atlas Air’s Q3 adjusted net income increased to $145.4 million or $4.88 per diluted share versus $82.7 million or $2.84 per share during the same period last year. The carrier reported a record third quarter revenue of $1.02 billion, compared to $809.9 million during the third quarter of 2020. At September 30, 2021, AAWW had cash, cash equivalents and restricted cash totaling $748.1 million, down from $856.3 million at December 31, 2020.


In Wednesday’s announcement, Atlas Air Worldwide’s President and Chief Executive Officer, John W. Dietrich, said,


“We delivered outstanding financial and operating results in the third quarter. We flew over 90,000 block hours and generated quarterly revenue that exceeded $1.0 billion for the first time in our company’s history. Our strategic focus on express, e-commerce and fast-growing global markets is driving robust demand for our services and producing strong financial performance. In a very challenging pandemic operating environment, our team pulled together to increase utilization of our aircraft, and safely serve our customers and the global supply chain.


“We recently announced long-term contract extensions for 20 aircraft with DHL Express as well as a new long-term ACMI agreement with FedEx. We have also extended or entered into other new long-term agreements with additional strategic customers. Collectively, these agreements demonstrate our ability to capitalize on market opportunities and deepen long-standing relationships with our customers.


“As we served the needs of our customers and their businesses, we were also extremely proud to support the U.S. government’s historic evacuation from Afghanistan. In total, we operated over 30 missions, transporting about 10,000 U.S. personnel as well as Afghan evacuees and their families from various locations into the United States. At Atlas, our people are our greatest asset, and we are pleased to have reached a new five-year joint collective bargaining agreement with our pilots. Under this agreement, all of our pilots will receive higher pay, quality of life improvements and enhanced benefits in line with our competitive landscape. We look forward to continuing to work collaboratively with our pilots and their new union leadership to build an even stronger company.


“We are operating in a very strong airfreight market, and we expect industry conditions to remain favorable for the foreseeable future. Global airfreight volumes continue to exceed pre-pandemic levels, while industry capacity, particularly on long-haul international routes, has not kept pace with demand. Supply chain bottlenecks, including the widely reported challenges at ocean ports worldwide, are driving increased modal shift to air as manufacturers, retailers and shippers strive to replenish very low inventory levels, especially ahead of the holiday shopping season. This current environment has also led to a structural acceleration of express growth and e-commerce adoption, which will drive both current and longer-term airfreight demand.


“We expect record revenue and adjusted earnings in the fourth quarter of 2021, with revenue of nearly $1.1 billion and adjusted EBITDA of about $325 million. We also anticipate adjusted net income to grow in excess of 20% compared with our prior fourth-quarter adjusted net income record of $143.2 million in 2020. This outlook includes the impact of our new joint collective bargaining agreement and our proactive initiatives to help mitigate the higher costs of the new agreement. It also reflects the increased contribution of numerous new and extended long-term customer agreements, high levels of aircraft utilization driven by strong customer demand, and solid peak-season volumes and yields.”


As previously announced, Atlas acquired three existing 747-400Fs which were previously on lease between May and August 2021. During October, the company also acquired three additional 747-400Fs which were previously on lease. Additionally, Atlas Air reached an agreement with their lessors in May and June 2021 to purchase five more Boeing 747-400Fs at the end of their existing lease terms through 2022.


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 pre-market trading Wednesday morning (11/3/21), shares in Atlas Air Worldwide Holdings, Inc. (NASDAQ: AAWW) were 4.88% higher at $83.97/share (9:04 AM EDT).