Atlas Air sees jump in earnings
Atlas Air Worldwide Holdings Inc., parent of Polar Air Cargo, said sharply higher second quarter earnings reflected improved aircraft utilization, increased military charter demand, and reduced net interest expense.
Purchase, N.Y.-based Atlas reported net profit of $43.2 million in the three months ending June 30, compared to $10.7 million in the same 2006 period. Revenue improved to $370 million from $366 million in the second quarter of 2006.
Earnings for the recent quarter included a substantial tax benefit related to DHL Express’ investment in Polar Air Cargo Worldwide Inc., in which DHL acquired a 49 percent equity interest (including a 25 percent voting stake) in exchange for $150 million in cash; $75 million was received at closing in late June, with the balance scheduled to be received in 2008.
“We substantially improved our operating performance in the second quarter of 2007,” said William J. Flynn, president and chief executive officer. “With a 16 percent smaller fleet, we generated better revenues, operating earnings and margins.”
Atlas Air sees jump in earnings