Atlas Air Worldwide reported a decline in quarterly income, year over year, on tariff and trade tensions and labor-related service disruptions. The company reported a quarterly net income of $60M vs. $71.1M in the third quarter of 2018.
Today, Atlas Worldwide Holdings, Inc. (NASDAQ: AAWW) reported a decline in net income in the third quarter to $60M or earnings per share (EPS) of $2.32 per diluted share. In the third quarter of 2018 the company reported a net income of $70.1M or diluted EPS of $0.84. The Purchase, NY based company is the parent company of Atlas Air and Southern Air Holdings and also holds a majority stake in Polar Air Cargo Worldwide. Today’s results reflect a gain on warrant accounting and the company has reported an adjusted EBITDA of $95.6M and adjusted net income of $9.5M or $0.37/share. Adjusted EDBITA is down from $123.9M and a diluted EPS of $1.54 in the third quarter of 2018. In today’s announcement, Atlas Air Worldwide’s Chairman and CEO, William J. Flynn stated,
“Our third-quarter performance was affected by the uncertain global macroenvironment, driven by ongoing tariff and trade tensions. In addition to lower yields and volumes than we anticipated, labor-related service disruptions had a significant impact on our performance during the third quarter. Looking to the full year, we expect revenue of about $2.75 billion, adjusted EBITDA of approximately $500 million, and adjusted net income of approximately 60-65% of our adjusted net income. We expect to benefit from peak-season volumes and yields, including the seasonal flying we do for express and e-commerce customers. In addition, our outlook anticipates increased passenger flying for the military and lower maintenance expense compared with the fourth quarter of 2018, as well as from a refund of aircraft rent paid in previous years.”
Mr. Flynn further reiterated that air cargo is a long-term growth industry and despite current macroeconomic headwinds, he expects continued growth as the global middle class expands. Atlas Air Worldwide is the world’s largest operator of Boeing 747 freighters and also has a fleet of B777, 777, 767,757 and 737 configured to meet the needs of domestic, regional and international cargo, along with charter passenger operations. Shares in Atlas Air Worldwide, Holdings, Inc. (NASDAQ: AAWW) were trading around 9% lower at $21.80/share on Wednesday afternoon.
Source: Atlas Air Worldwide