Atlas Air parent’s 2nd quarter net income down 33%

Atlas Air parent’s 2nd quarter net income down 33%    Atlas Air Worldwide Holdings Inc. (AAWW), parent company of Atlas Air and Polar Air Cargo, Monday reported second quarter net income of $10.7 million, down 33 percent compared to net income of $15.9 million in the same quarter 2005.
   Second quarter operating income dropped 30 percent to $30.6 million, from $43.8 million in the year-earlier quarter. Revenue decreased 7 percent to $366.4 million from $395.2 million. Total operating expenses were reduced by 4.4 percent to $335.9 million.
   AAWW said its total operated block hours in the second quarter decreased 17.6 percent with its load factor down 3.4 points to 63.1 percent along with a 2.3 percent drop in the number of average operating aircraft.
   The second quarter results were an improvement over a poor first quarter performance which saw a net loss of $3.7 million. For the year to date, AAWW posted net income of $7 million, down 58 percent from $16.5 million after six months last year. First half operating income declined 41 percent to $37.7 million from $64.2 million while revenue dropped 6 percent to $698.6 million.
   “Results for the second quarter reflected solid operating performance,” said William J. Flynn, AAWW’s new president and chief executive officer. “We benefited from improved unit pricing metrics in our major business segments and from a substantial reduction in our maintenance expenditures, where we expect to see continued improvement over the balance of the year.”
   Flynn, former president and CEO at Santa Ana, Calif.-based global freight forwarder GeoLogistics Corp., replaced Jeffrey H. Erickson in June.
   “Our next step will be a significant investment in next-generation freighter technology, which we hope to announce shortly. We believe that we will provide a more compelling value proposition to our customers with leading-edge freighter aircraft that possess better reliability, range, capacity, and fuel efficiency and improve our commercial-risk profile,” Flynn said.