Atlas Air saw revenue growth in the fourth quarter of 2022 thanks to “an increase in the average rate per block hour”.
The US cargo airline’s revenues in the fourth quarter of 2022 are up 4% compared to the fourth quarter of 2021.
Atlas Air said: “Higher Airline Operations revenue primarily reflected an increase in the average rate per block hour, partially offset by a reduction in block hours flown. The higher average rate per block hour was primarily due to higher fuel prices and yields (net of fuel), including the impact of new and extended long-term contracts and increased cargo flying for the US Air Mobility Command.”
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However, volumes in terms of block hours were down 8% in the fourth quarter year-on-year.
“Block hours decreased primarily due to the impact of severe winter storms and a reduction in less profitable smaller gauge CMI flying,” said Atlas.
And reported net income for the fourth quarter of 2022 totalled $126m compared with $176.7m in the fourth quarter of 2021.
Full-year net income in 2022 was down 28% over 2021, as air cargo demand decreased and capacity increased with the return of passenger planes and accompanying belly capacity.
The airline, which is due to be acquired this year, was positive about adding freighter capacity.
Atlas Air Worldwide president and chief executive John Dietrich said: “2022 was one of the best years in Atlas’ history, and we are pleased that we placed all eight of our new and incoming aircraft under long-term contracts.
“All four new 747-8Fs and the first of four 777Fs have been delivered and are operating for strategic customers under attractive long-term agreements.”
He added: “In January, we took delivery of the final 747 ever to be produced by Boeing during a historic ceremony.”
