Atlas Air sees continued success in 2015

In a time of lagging performance in many areas of the air cargo sector, Atlas Air is one carrier that appears to be enjoying the fruits of its labor this year. The company announced adjusted net income of US$29.4 million, or $1.17 per diluted share, for the second quarter of 2015. After taking into account several one-time charges from Q2s in 2014 and 2015, Atlas’ adjusted Q2 net income rose by more than 85 percent, year over year.

The air charter and aircraft leasing operation said its free cash flow for Q2 was $68.5 million,  compared to $59.2 million in Q2 2014. “Earnings in the second quarter were driven by contribution and margin strength in ACMI charter and dry leasing,” said William J. Flynn, president and CEO of Atlas Air.

Flynn also said he anticipates 55 percent of earnings to occur in the second half of the year and that he expects a relatively strong peak season. Some of the larger freight forwarders, he added, are already starting to reserve space in preparation for peak demand.

This year, the company said it will place an additional 747-400F in ACMI service with DHL Express at the start of the third quarter. A new 747-8F is scheduled for delivery in November, and the charter carrier is bringing an owned, unencumbered 747-400 converted freighter to active service to meet additional charter demand. Atlas plans to secure a short-term operating lease on a second 747-400 converted freighter and expand its Titan dry-lease portfolio by acquiring and converting two 767 passenger aircraft into freighters. Those freighters will be leased to DHL on a long-term basis once they are delivered to the express carrier at the end of the year.

Additionally, for the six months ended June 30, 2015, adjusted net income for Atlas was $55.2 million or $2.20 per diluted share, compared to $27.1 million, or $1.07 per diluted share, for the same period last year.