- Joe Breitfeller
Atlas Air Worldwide Reports Third Quarter Net Income of $74.1 Million or $2.78 per Diluted Share
The carrier’s third quarter adjusted EBITDA for the third quarter totaled $196.3 million compared to $95.6 million during Q3 2019. Adjusted net income for the quarter was $82.7 million or $2.84 per diluted share versus $9.5 million or $0.37/share in Q3 2019.
On Thursday (November 5, 2020), Atlas Air Worldwide announced a third quarter 2020 net income of $74.1 million or $2.78 per diluted share versus $60 million or $2.32/share during Q3 2019. The company’s third quarter adjusted EBITDA totaled $196.3 million compared with $95.6 million during the same period last year. Atlas Air’s adjusted net income for the third quarter was $82.7 million or $2.84 per diluted share versus $9.5 million or $0.37/share in Q3 2019. In Thursday’s announcement, Atlas Air Worldwide’s Chief Executive Officer, John W. Dietrich, said in part,
The positive momentum of our business continued in the third quarter, despite a more complex, costly and challenging operating environment caused by the COVID-19 pandemic. Our performance is the result of our entire team pulling together to increase utilization of our aircraft and execute on strong market demand and higher yields. We continue to broaden our customer base and grow with existing customers to maximize market opportunities. We further increased our roster of long-term charter customers, including the addition of Cainiao, the logistics arm of Alibaba, as well as expanding with HP Inc. and several large global freight forwarders.
“We also expanded operations for Amazon, where we began CMI flying three additional 737 freighters since September. We are now operating eight 737s for Amazon, complementing the large fleet of 767s that we have with them. Importantly, these long-term customer agreements provide secure and attractive earnings streams and deepen our strategic position in the fast-growing e-commerce sector, as well as in important global markets like China and South America. We are seeing substantial demand for our long-haul widebody services, both near- and long-term, at attractive yields. We are leveraging the agility of our business model and the scale of our fleet and global operations to serve this increased customer demand.
“We are also excited to announce that Titan Aircraft Investments, the joint venture between our Titan subsidiary and Bain Capital Credit, has arranged $500 million in financing facilities. The funds are available for the acquisition of freighter aircraft on lease and passenger aircraft for conversion to freighters. This important step will enable the joint venture to serve the strong market demand for leasing freighters. I am proud of the important role Atlas is playing in responding to this pandemic globally and thank our crew and ground staff for their dedication in delivering safe and reliable service. We are taking wide-ranging precautions to safeguard our employees, while navigating through this complex operating backdrop…”
Atlas Air’s third quarter volume increased to 90,528 block hours versus 79,310 during Q3 2019 and revenue rose to $809.9 million compared to $648.5 million in the same period last year. The company’s net unallocated income and expenses during the quarter primarily reflects $64.2 million in U.S. Cares Act grant income. Third quarter earnings also include an unrealized loss on outstanding warrants of $43.6 million, compared to an unrealized gain on outstanding warrants during Q3 2019.
As of September 30, 2020, Atlas Air worldwide had $729.3 million in cash, cash equivalents, restricted cash and short-term investments, compared to $114.3 million at December 31, 2019. On October 9, 2020, Amazon elected a cashless exercise with respect to 3,607,477 shares vested under a 2016 Warrant, resulting in the acquisition of 1,375,421 shares of AAWW common stock or around 4.99 percent of outstanding shares. In trading Thursday afternoon, shares in Atlas Air Worldwide Holdings, Inc. (NASDAQ: AAWW) were 0.22% higher at $62.27/share (3:54 PM EST).
Source: Atlas Air Worldwide