Atlas Air posts flat Q1 results

The air cargo services provider reported an income from continuing operations, net of taxes, of $0.04 million for the first quarter of 2017, compared to $0.5 million for the corresponding period in 2016.    Atlas Air Worldwide Holdings, Inc. posted an income from continuing operations, net of taxes, of $0.04 million for the first quarter of 2017, compared to $0.5 million for the corresponding period in 2016.
   Income in the first quarter of 2017 included an unrealized loss on financial instruments of $5.2 million related to outstanding warrants.
   On April 7, 2016, Atlas Air Worldwide completed its $105.8 million acquisition of Southern Air, and on May 5, 2016, the company entered into an agreement with Amazon to provide the e-commerce giant with air cargo service.
   Atlas Air Worldwide agreed to dry lease and operate 20 B767-300 freighters on behalf of Amazon on a crew, maintenance and insurance basis on a seven-year term; and dry leasing though its Titan Aviation leasing unit on a 10-year term. In addition, Amazon was granted vested warrants to purchase up to 20 percent (after the issuance) of Atlas Air Worldwide’s common shares for $37.50 per share over a period of five years, and additional warrants to purchase up to another 10 percent over seven years at the same exercise price.
   “We placed out second 767-300 aircraft into service for Amazon in February, and just added our third and fourth aircraft in May,” Atlas Air Worldwide President and CEO William J. Flynn said.
   Atlas Air Worldwide also placed two of its 747-8 freighters with Cathay Pacific Cargo on an aircraft, crew, maintenance and insurance basis, with service beginning this month, Flynn said.
   “In addition to Cathay Pacific, we have recently announced other significant new customer agreements with Asiana Cargo, Nippon Cargo Airlines and FedEx that will all contribute to earnings growth this year,” Flynn said.
   As of March, Atlas Air Worldwide had a total fleet of 91 aircraft, with an operating fleet of 82 aircraft.
   Purchase, N.Y.-based Atlas Air Worldwide is the parent company of Atlas Air, Inc.; Southern Air Holdings, Inc.; and Titan Aviation Holdings, Inc.; and is the majority shareholder of Polar Air Cargo Worldwide, Inc.