Tag Archives: 747-400

Atlas Air Worldwide reports second quarter adjusted net income of $29.4 million

Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York) today announced adjusted net income attributable to common stockholders of $29.4 million, or $1.17 per diluted share, for the three months ended June 30, 2015, compared with $15.9 million, or $0.63 per diluted share, for the three months ended June 30, 2014.

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On a reported basis, net income attributable to common stockholders in the second quarter of 2015 totaled $28.4 million, or $1.13 per diluted share, compared with $29.6 million, or $1.17 per diluted share, in the year-ago quarter.

Free cash flow of $68.5 million in the second quarter of 2015 compared with $59.2 million in the second quarter of 2014.

“Earnings in the second quarter were driven by contribution and margin strength in ACMI, Charter and Dry Leasing,” said William J. Flynn, President and Chief Executive Officer.

“We are seeing good demand for our aircraft and services as we enter the second half of 2015, as many of our customers are outperforming the overall market. We are working closely with our customers to provide them with the most efficient aircraft and effective operating services for their needs.

“As we gather additional insight into second-half demand, yields and military requirements, we continue to look forward to a strong year and a significant increase in earnings compared with 2014.”

Responding to market demand and customer requirements, we are implementing several previously announced fleet initiatives that are incorporated in our framework outlook for the year: placing an additional 747-400 freighter in ACMI service with DHL Express at the start of the third quarter; acquiring a new 747-8 freighter scheduled to be delivered to us in November; returning an owned, unencumbered 747-400 converted freighter to active service to meet additional Charter demand; securing a short-term operating lease on a second 747-400 converted freighter in Charter with more favorable terms; and expanding our Titan Dry Leasing portfolio by acquiring and converting two 767 passenger aircraft into freighter configuration. The freighters will be leased to DHL on a long-term basis when they are delivered in the fourth quarter.

 

Second-Quarter Results

Revenue and direct contribution in ACMI in the second quarter benefited from an increase in block hour volumes, driven by the start-up of four additional 767 CMI aircraft and an improvement in 747 cargo aircraft utilization. Segment contribution also benefited from lower heavy maintenance expense. These were partially offset by a reduction in revenue per block hour, which reflected the impact of payments received from a customer in 2014 in connection with the return of an aircraft as well as an increase in CMI flying in 2015.

In Charter, significantly higher segment revenues reflected an increase in commercial cargo demand and improvements in military passenger and cargo demand. In addition, segment contribution benefited from those higher flying levels and a reduction in heavy maintenance expense. The decrease in revenue per block hour was primarily driven by the impact of lower fuel prices.

In Dry Leasing, revenue and profitability grew as we realized revenue from maintenance payments related to the scheduled return of a 757-200 cargo aircraft in April. This aircraft was subsequently leased to DHL Express on a long-term basis during the quarter.

Reported earnings for the second quarter of 2015 included an effective income tax rate of 31.0%, which reflected our continued reinvestment of the net earnings of certain foreign subsidiaries outside of the U.S.

Half-Year Results

For the six months ended June 30, 2015, adjusted net income attributable to common stockholders totaled $55.2 million, or $2.20 per diluted share, compared with $27.1 million, or $1.07 per diluted share, for the six months ended June 30, 2014.

On a reported basis, first-half 2015 net income attributable to common stockholders totaled $57.6 million, or $2.29 per diluted share, compared with $37.5 million, or $1.49 per diluted share, in the first half of 2014.

Free cash flow totaled $148.8 million in the first six months of 2015 compared with $96.1 million in the first six months of 2014.

Liquidity and Capital Resources

At June 30, 2015, our cash, cash equivalents, restricted cash and short-term investments totaled $554.9 million, compared with $330.7 million at December 31, 2014.

The change in position reflected net cash of $171.1 million provided by operating activities; net cash of $104.4 million provided by financing activities, which included $99.1 million of debt payments; and net cash of $59.4 million used for investing activities.

In June 2015, we issued $224.5 million of convertible senior notes due June 2022 with a cash coupon of 2.25%. We used a portion of the approximately $218 million of net proceeds from the offering in June to fund the $16.6 million net cost of convertible note hedges and warrants related to the notes. These transactions are intended to offset any actual dilution from the conversion of the notes and to effectively increase the overall conversion price from $74.05 to $95.01 per share.

During the third quarter of 2015, we expect to use approximately $113 million of the net proceeds to retire higher-rate Enhanced Equipment Trust Certificates (EETCs) related to five of our 747-400 freighter aircraft. The redemption amount gives effect to the company’s ownership interests in the EETCs being retired, which have an average cash coupon of 8.1%.

We expect to use the remaining net proceeds from the convertible note issuance for working capital and capital expenditures, repayment or refinancing of debt, and general corporate purposes.

Outlook

We are encouraged by our strong first-half performance. We are seeing good demand for our aircraft and services this quarter and for the remainder of the year. And we continue to anticipate significant growth in adjusted diluted earnings per share in 2015.

On a sequential basis, we expect earnings per share in the third quarter of 2015 to be slightly better than our second-quarter 2015 adjusted earnings, followed by further earnings improvement in the fourth quarter.

Taking our first-half 2015 earnings strength into account, we continue to expect approximately 55% of our earnings to occur in the second half.

In addition, we anticipate that block-hour volumes this year will increase approximately 10% compared with 2014, including the impact of the 747-8 freighter scheduled to be delivered in November and 747-400BCF that we returned to service at the end of the second quarter. More than 70% of our total block hours should be in ACMI and the balance in Charter. Our ACMI outlook reflects expected growth in both 747 freighter operations as well as CMI flying. Our Charter outlook reflects our strong presence in the global charter market and military demand that is holding up well compared with 2014 levels.

In Dry Leasing, our portfolio is expected to include our recent acquisition and subsequent conversion of two 767 passenger aircraft to freighter configuration. Following their conversion, which should be completed during the fourth quarter of this year, the aircraft will be leased to DHL Express.

Given the flying levels that we anticipate, we continue to expect that aircraft maintenance expense in 2015 should total approximately $190 million. In addition, depreciation should be approximately $125 million. We also anticipate an effective income tax rate of approximately 30%. Core capital expenditures, excluding aircraft and engine purchases, are expected to total approximately $45 million, mainly for spare parts for our fleet. Expenditures for additional aircraft and engines should total approximately $240 million.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Polar Air Cargo’s Boeing 747-46NF N454PA (msn 30812) in DHL colors departs from scenic Anchorage, Alaska.

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United Airlines announces its highest-ever quarterly profit

United Airlines (Chicago) today reported its largest quarterly profit ever, reporting a second quarter 2015 net profit of $1.3 billion, or $3.31 per diluted share, excluding $67 million of special items.

The company issued this report:

United logo-1

United Airlines (UAL) today reported second-quarter 2015 net income of $1.3 billion, or $3.31 per diluted share, excluding $67 million of special items. Including special items, UAL reported second-quarter net income of $1.2 billion, or $3.14 per diluted share. These results are a record quarterly profit for the company.

  • The company’s Board of Directors authorized an additional $3 billion share repurchase program, which the company expects to complete by the end of 2017.
  • In the quarter, UAL prepaid approximately $800 million of debt, contributed approximately $620 million to its pension plans and returned approximately $250 million to shareholders as part of its existing $1 billion share buyback program.
  • UAL earned an 18.2 percent return on invested capital for the 12 months ended June 30, 2015.

“This quarter’s record results reflect the progress we’re making on our long-term plan, and I’d like to thank the United team for their great work,” said Jeff Smisek, UAL’s chairman, president and chief executive officer. “The $3 billion share repurchase program we announced today demonstrates the confidence we have in our future. We will continue to invest in our customers, assets and our people, and remain committed to improving our balance sheet, expanding our margins and improving our return on invested capital, and expect our third quarter pre-tax margin to be between 13.5 and 15.5 percent, excluding special items.”

Second-Quarter Revenue and Capacity

For the second quarter of 2015, total revenue was $9.9 billion, a decrease of 4 percent year-over-year. Second-quarter consolidated passenger revenue decreased 3.4 percent to $8.7 billion, compared to the same period in 2014. Ancillary revenue per passenger in the second quarter increased 6.7 percent year-over-year. Second-quarter cargo revenue decreased 1.3 percent year-over-year to $229 million. Other revenue in the second quarter decreased 9.6 percent year-over-year, mostly due to the reduction in sales of fuel to a third party. The corresponding expense decline from this reduction appears in third-party business expense.

Consolidated revenue passenger miles increased 0.7 percent and consolidated available seat miles increased 2.3 percent year-over-year for the second quarter, resulting in a second-quarter consolidated load factor of 83.9 percent.

Second-quarter 2015 consolidated PRASM decreased 5.6 percent and consolidated yield decreased 4.1 percent compared to the second quarter of 2014.

“This quarter, we continued to build and refine our route network, including announcing the move of p.s. transcontinental service to our global gateway hub at Newark Liberty Airport and forming a long-term partnership with Azul Brazilian Airlines. These decisions will enhance our network and provide our customers with more choice and convenience,” said Jim Compton, UAL’s vice chairman and chief revenue officer. “We will continue to improve our leading network by focusing on our strengths, while investing in our people, fleet and products to increase revenue and deliver a flyer-friendly customer experience.”

Read the full report: CLICK HERE

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. United has 23 aging Boeing 747-400s that will be eventually replaced with newer Airbus A350-1000s and Boeing 787-10 Dreamliners. Boeing 747-422 N199UA (msn 29717) arrives in Frankfurt.

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Air France moves up the last Boeing 747-400 revenue flight

Air France (Paris) is moving up the planned Boeing 747-400 retirement date (subject to further changes). The last planned Boeing 747-400 revenue flight has been moved from March 26, 2016 to January 10, 2016 according to Airline Route. The last flight is currently flight AF439 departing from Mexico City on January 10, 2016 and arriving at Paris (CDG) the following day at 2:25 pm (1425).

 

Copyright Photo: Brian McDonough/AirlinersGallery.com. Boeing 747-428 F-GITE (msn 25601) arrives at Miami International Airport.

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Transaero unveils its Boeing 747-400 Siberian Tiger livery on EI-XLN in support of the Amur Tiger Center

Transaero 747-400 EI-XLN (15-Siberian Tiger)(Nose) VKO (Transaero)(LR)

Transaero Airlines (Moscow) has unveiled at Moscow’s Vnukovo airport, the official presentation of the joint project with the Amur Tiger Center of the new “Siberian Tiger” livery on the pictured 447-seat Boeing 747-412 EI-XLN (msn 28029). The special color scheme is designed to “draw attention of the international and Russian public to the issues of environmental protection and conservation of rare and endangered species.”

The airline continued:

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The project, called “Striped Flight”, has acquired the characteristics and features of the tiger with the nose of the aircraft adorned in the image of the head of the Amur tiger.

According to surveys conducted in 2015, the Amur tiger population in Russia in the wild has stabilized at around 510-540 individuals.

In the coming decade, the fate of tigers and the whole natural complex will largely depend on the concerted action of the international community. The airline and the Amur Tiger Center have joined forces under the motto: “Let’s save nature together.”

In flight, Transaero passengers on “Striped flight” will be able to view the documentaries produced by the Center under the “Siberian Tiger” project.

The Amur Tiger Center, located in Moscow and Vladivostok, specializes in the protection of Siberian Tigers.

All photos by Transaero Airlines.

Transaero Airlines aircraft slide show: AG Airline Slide Show

Transaero 747-400 EI-XLN (15-Siberian Tiger)(Nose-1) VKO (Transaero)(LR)

 

A stowaway falls from a British Airways Boeing 747-400 on approach to London Heathrow, another survives

British Airways (London) and other authorities are investigating how two suspected stowaways were able to get on a British Airways Boeing 747-400 flight from Johannesburg to London (Heathrow) yesterday (June 18). One man fell to his death while the Jumbo was on approach to LHR, landing on the roof of a business on Kew Road in Richmond.

 

A second man, who was found hiding in the wheel well of the aircraft, has been hospitalized with injuries, the airline stated.

According to CNN, British Airways also stated it is working with authorities from both countries to get more details.

Johannesburg and London are about 6,000 miles apart. The flight, under freezing conditions in the wheel well, is nearly 12 hours in duration.

Read the full report from The Telegraph: CLICK HERE

Copyright Photo: SPA/AirlinersGallery.com. British Airways Boeing 747-436 G-BNLP (msn 24058) approaches the runway at London’s Heathrow Airport.

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Avatar Airlines turns to crowdfunding for start-up capital

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Avatar Airlines (Boca Raton, Florida), as we previously reported, is a proposed new paper airline that wants to operate high-density Boeing 747-400s on “popular domestic routes with attractive low fares”. The new airline previously reported its had submitted an application to the DOT and the FAA for operating authority as an air carrier. A core component of its business plan to offer corporate sponsors the opportunity to advertise on the exteriors of the aircraft as well as in the interiors of the aircraft.

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Now according to USA Today, the proposed airline has turned to crowdfunding for capital funding in order to obtain a Part 121 AOC and start operations. The entity has a funding campaign target of $5 million.

Avatar on Facebook

Above: Avatar is offering this shirt for every $50 donated to the start-up on their Facebook page.

Read the full report: CLICK HERE

Avatar 747-400

All images by Avatar Airlines.

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Virgin Atlantic plans to operate the last Boeing 747 flight from Heathrow in April 2016

Virgin Atlantic Airways (London) has tentatively scheduled the last Boeing 747-400 revenue flight for Heathrow Airport with an arrival on April 18, 2016 in London. According to Airline Route, the last planned flight is currently flight VS 006 departing Miami at 9:50 pm (2150) on April 17, 2016 and arriving the next day (April 18) at London (Heathrow) at 11:30 am (1130).

Virgin Atlantic has operated the Boeing Jumbo since its inception on June 22, 1984. The pictured ex-Aerolineas Argentinas Boeing 747-287B G-VIRG (msn 21189) (above), named “Maiden Voyager”, operated the first Virgin Atlantic flight between London (Gatwick) and Newark.

Top Copyright Photo: Richard Vandervord/AirlinersGallery.com. Boeing 747-287B G-VIRG (msn 21189) holds short of the runway, ready for departure from Gatwick Airport. Click on the photo for the large view (note the humorous painted-on painter falling off the tail and dropping red paint on the fuselage).

Virgin Atlantic aircraft slide show: AG Airline Slide Show

Bottom Copyright Photo: SPA/AirlinersGallery.com. Virgin Atlantic added the first Boeing 747-400 on April 28, 1994 with the arrival of Boeing 747-4Q8 G-VFAB (msn 24958) “Lady Penelope”. Sister ship Boeing 747-4Q89 G-VBIG (msn 26255) arrives at London (Heathrow).

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