Atlas Air Worldwide has announced stronger than anticipated results for the second quarter (Q2) and raised its outlook for the rest of the year with performance driven by market strength and increased customer demand. Block hours grew 19 per cent during the period, reflecting increased Boeing 767 flying for Amazon, the start-up of 747-400 flying for several new customers, and the redeployment of 747-8F aircraft from the charter segment to ACMI.
Volumes in Q2 of 2018 increased 19 per cent to a record 72,660 block hours, with revenue growing 29 per cent to $666.1 million. Despite, the stronger performance and positivity, Atlas reported an overall loss from continuing operations, net of taxes, of $21.1 million, during the period compared with reported income of $39 million in Q2 of 2017.
However, reported results in Q2 of 2018 included an unrealised loss on outstanding warrants of $50 million compared with an unrealised gain on outstanding warrants of $13.8 million in the year-ago period, as well as a special charge of $9.4 million related to engines held for sale. In Q2 on an adjusted basis, income from continuing operations, net of taxes, increased to $49.7 million, from $29.1 million in Q2 last year.
The company said it now expects full-year adjusted net income will grow by 45 to 50 per cent compared with 2017, up from prior outlook of 35 to 40 per cent growth.For the full year, the company now expects revenue to exceed $2.6 billion and projects adjusted EBITDA to increase to more than $520 million.
For the third quarter (Q3) of 2018, the company expects adjusted net income to increase by an upper-30 per cent to lower-40 per cent level compared with Q3 2017.
President and chief executive officer, William J. Flynn said: “Our volumes and revenue grew to new records in the second quarter, and while reported results were impacted by warrant accounting, our adjusted income and adjusted EBITDA were sharply higher.”
He added: “We expect to continue to build on our strong performance in the second half of 2018. Airfreight demand is solid and the global economy is growing.
“As a result of our strategic initiatives to grow and diversify our fleet, expand our customer base and enhance our business mix, we are meeting the growing needs of our customers, driving our results and extending our leadership in global aviation outsourcing.” Atlas Air Worldwide’s companies include Atlas Air, Southern Air, Polar Air Cargo and Titan Aviation Holdings.