Category Archives: Atlas Air Worldwide Holdings

Atlas Air Worldwide Holdings reports first quarter net income of $81.5 million

Atlas Air Worldwide Holdings, Inc. (Atlas Air) today announced first quarter 2022 net income of $81.5 million, or $2.38 per diluted share, compared with  $89.9 million, or $3.05 per diluted share, in 2021 (which included $40.9 million, $31.9 million after tax, of CARES Act grant income).

On an adjusted basis, EBITDA totaled $202.8 million in the first quarter of 2022 compared with $181.3 million in the prior-year period. For the three months ended March 31, 2022, adjusted net income totaled $88.8 million, or $2.99 per diluted share, compared with $72.2 million, or $2.45 per diluted share, in 2021.

“We are off to an excellent start in 2022. We delivered strong earnings, despite the pandemic-related operational challenges we continue to navigate,” said Atlas Air Worldwide President and Chief Executive Officer John W. Dietrich. “I would like to thank the entire Atlas team for their ongoing commitment to deliver this great performance.”

He added: “Atlas continues to demonstrate the value of airfreight as a vital component of the global supply chain. We are seeing a sustaining shift in long-term customer demand for Atlas’ dedicated aircraft, and the speed and reliability airfreight provides. During the first quarter, our customers continued to enter and enhance long-term contracts with Atlas for dedicated freighter capacity.

“We are expanding and diversifying our customer base, and increasing flying under long-term contracts with attractive rates and guaranteed levels of flying. To meet customer demand, we are also investing in our world-class fleet by adding four new 747-8F and four new 777 freighter aircraft.

All four of our new 747-8Fs have been placed with customers under long-term contracts, and we have strong interest for the new 777Fs as well.”

Mr. Dietrich concluded: “We are very well positioned for the years ahead. We have significantly strengthened our balance sheet and have a healthy cash balance. This provides us the financial flexibility to opportunistically deploy capital, including investing in our business and returning capital to shareholders.”

First-Quarter Results

Revenue grew to $1.0 billion in the first quarter of 2022 compared with $861.3 million in the prior-year quarter. Volumes in the first quarter of 2022 totaled 82,626 block hours compared with 88,523 in the first quarter of 2021.

For the three months ended March 31, 2022, our reported net income totaled $81.5 million, or $2.38 per diluted share, compared with net income of $89.9 million, or $3.05 per diluted share, in the first quarter of 2021 (which included $40.9 million, $31.9 million after tax, of CARES Act grant income).

On an adjusted basis, EBITDA was $202.8 million in the first quarter this year compared with $181.3 million in the first quarter of 2021. Adjusted net income in the first quarter of 2022 totaled $88.8 million, or $2.99 per diluted share, compared with $72.2 million, or $2.45 per diluted share, in the prior-year period.

Reported earnings also included an effective income tax rate of 22.8%. On an adjusted basis, our results reflected an effective income tax rate of 22.3%.

Higher Airline Operations revenue primarily reflected an increase in the average rate per block hour, partially offset by a reduction in block hours. The higher average rate per block hour was primarily due to higher yields (net of fuel), including the impact of new and extended long-term contracts, as well as higher fuel prices. Block-hour volumes reflected a reduction in less profitable smaller gauge CMI service flying as well as operational disruptions due to the spike in Omicron cases globally.

Higher Airline Operations segment contribution in the first quarter of 2022 was primarily driven by higher yields (net of fuel), including the impact of new and extended long-term contracts. These improvements were partially offset by increased pilot costs related to our new collective bargaining agreement (CBA) and higher premium pay for pilots operating in certain areas significantly impacted by COVID-19.

In Dry Leasing, segment revenue and contribution increased from the prior-year period primarily due to $5.0 million of revenue received from maintenance payments related to the scheduled return of an aircraft, which was subsequently sold during the quarter. Dry Leasing contribution also benefited from lower interest expense related to the scheduled repayment of debt.

Unallocated income and expenses, net, increased during the quarter, primarily due to $40.9 million in CARES Act grant income recognized in 2021 (which was excluded from our adjusted results).

Share Repurchases

As previously announced in February 2022, our Board of Directors approved a share repurchase program authorizing up to $200.0 million of our common stock, which we began by entering into a $100.0 million accelerated share repurchase program (ASR). In total, we repurchased 1,234,144 shares under the ASR, which was completed in April.

Additional purchases may be made at our discretion in the form of open market repurchase programs, ASRs, privately negotiated transactions, or a combination of these methods.

Fleet

As previously disclosed, we are purchasing five of our existing 747-400Fs at the end of their leases during the course of this year, one of which was acquired in March. We expect to complete the remaining four aircraft acquisitions between May and December 2022.

Acquiring these widebody freighters underscores our confidence in the demand for international airfreight capacity, particularly in express, e-Commerce and fast-growing global markets. Keeping these aircraft in our fleet ensures continuity of capacity for our customers, which will drive strong returns for Atlas in the years ahead.

Cash

At March 31, 2022, our cash, including cash equivalents and restricted cash, totaled $740.9 million compared with $921.0 million at December 31, 2021.

The change in position resulted from cash used for investing and financing activities, including $115.0 million for pre-delivery payments for our new aircraft and $100.0 million for our ASR, partially offset by cash provided by operating activities.

Net cash used for investing activities during the first quarter of 2022 primarily related to payments for flight equipment and modifications, including aircraft pre-delivery payments, as well as capital expenditures and spare engines.

Net cash used for financing activities during the period primarily related to payments on debt obligations and the ASR.

2022 Outlook*

For the second quarter of 2022, we expect revenue to exceed $1.1 billion from flying more than 85,000 block hours. We also anticipate adjusted EBITDA of approximately $215.0 million, and adjusted net income to grow by a high-single-digit percentage compared with adjusted net income of $88.8 million in the first quarter of 2022.

For the full year, we expect to fly more than 350,000 block hours, with revenue of approximately $4.6 billion, and adjusted EBITDA of about $1.0 billion. In addition, we anticipate adjusted net income in the second half of 2022 to improve approximately 60% compared with adjusted net income in the first half of this year.

We expect aircraft maintenance expense in 2022 to be similar to 2021, and depreciation and amortization to total about $300 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are projected to total approximately $135 to $145 million, mainly for parts and components for our fleet.

We also expect our full-year 2022 adjusted effective tax rate will be approximately 23.0%.

This outlook includes the contribution from numerous new or enhanced long-term customer contracts, as well as higher pilot costs from our new CBA. We also expect second-quarter results to continue to be impacted by premium pay for pilots operating in certain locations significantly impacted by COVID-19.

Other than with regard to revenue, we provide guidance on an adjusted basis because we are unable to predict with reasonable certainty and without unreasonable effort the effects on future gains and losses on asset sales, special charges and other unanticipated items that could be material to our reported results.*

Atlas Air airfcraft photo gallery:

Atlas Air and Cainiao expand partnership with the addition of a new Boeing 747-8 freighter linking China and the Americas

Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. and Cainiao Network, the logistics arm of Alibaba Group, today announced the expansion of their strategic partnership by adding a new Boeing 747-8 Freighter under a long-term agreement to increase capacity on routes between China and the Americas.

This expansion builds upon Atlas Air’s partnership with Cainiao, and the new aircraft will enter service for Cainiao in the second quarter of 2022, linking China with the United States, Brazil and Chile.

This 747-8F aircraft is among the last 747s ever to be produced by Boeing. As previously announced, Atlas ordered the last four 747 production aircraft to capitalize on strong demand and deliver value for its customers, while also bolstering its commitment to environmental stewardship through the reduction of aircraft emissions, resource consumption and noise.  The iconic Boeing 747 program has been in operation for over 50 years and will continue to play a critical role in keeping global supply chains moving for decades to come.

The Boeing 747-8 Freighter is the most capable, technologically advanced and environmentally friendly widebody freighter. The 747-8F provides 20% higher payload capacity and 16% lower fuel consumption than the very capable 747-400F.

In November 2021, Cainiao expanded its partnership with Atlas Air to include daily charter flights operated between China and Latin America in response to the growth of cross-border trade between China and Latin America.

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Atlas Air extends long-term agreement with SF Group

SF Airlines Boeing 747-4EVF ER B-2422 (msn 35173) LGG (Ton Jochems). Image: 951326.

Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc., today announced the extension of a long-term aircraft transportation services agreement to operate a Boeing 747-400 Freighter for SF Group (SF Airlines), China’s leading express service provider, between China and the United States.

The agreement, which has been in place since 2018, enhances the operating capability of SF and extends its fast-growing global network.

SF, based in Shenzhen, Guangdong, is one of the world’s largest express providers and one of China’s leading couriers.

Top Copyright Photo: SF Airlines Boeing 747-4EVF ER B-2422 (msn 35173) LGG (Ton Jochems). Image: 951326.

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Southern Air is merged into Atlas Air, the end of an era

Southern Air is officially merged into Atlas Air.

Atlas Air Worldwide Holdings, Inc. on November 17 announced that the transition to bring operations of Southern Air, Inc. under a Single Operating Certificate (SOC) with Atlas Air, Inc. is now complete.

With the addition of Southern Air, Atlas Air was able to add 777 and 737 aircraft operating platforms, resulting in a more diversified company offering customers access to a wider range of aircraft, a broader array of services, greater scale and an expanded global footprint.

Southern Air was established on March 5, 1999, by James Neff from the assets of original Southern Air Transport (SAT) and commenced operations in November 1999.

Atlas Air Worldwide is now composed of three companies.

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Atlas Air teams up with Cainiao to operate daily Asia-Latin America chartered flights with cargo volume rising by 144%

Atlas Air Boeing 747-47UF N418MC (msn 32840) AMS (Ton Jochems). Image: 955860.

Atlas Air Worldwide Holdings, Inc. has announced its Atlas Air, Inc. subsidiary has expanded its partnership with Cainiao Network, the logistics arm of Alibaba Group, to enhance overall shipping efficiency in response to the growth of cross-border trade between China and Latin America. With the launch of daily flights, Cainiao’s weekly cargo volume from China to Latin America has increased 144% compared to last October when there were only three chartered flights per week.

Under the expanded agreement, Atlas has added an additional Boeing 747-400F to fly between Hong Kong, China and Santiago, Chile. This brings the total dedicated fleet that Atlas operates for Cainiao to five aircraft.

This expanded fleet builds upon the successful collaboration between Atlas and Cainiao, which was launched in October 2020, with Atlas operating three weekly charter flights dedicated to Cainiao, linking Hong Kong with Brazil and Chile. The current upgraded Atlas-Cainiao partnership has enhanced overall warehouse distribution and air freight efficiency by over 40%.

According to Cainiao, the number of parcels shipped to Brazil in September 2021 increased by 200% as compared to the same month last year. In response to the robust growth, Cainiao rolled out “12-day delivery service” in Brazil’s core metropolitan areas. In addition, Cainiao also plans to establish a distribution center in Brazil to offer next-day or even same-day delivery in partnership with local delivery firms.

 

Cainiao-Atlas Asia-Latin America Chartered Flight

Cainiao-Atlas Asia-Latin America Chartered Flight

Top Copyright Photo: Atlas Air Boeing 747-47UF N418MC (msn 32840) AMS (Ton Jochems). Image: 955860.

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Atlas Air now operates two Boeing 747-400Fs for FedEx Express

Atlas Air Worldwide Holdings, Inc. has announced its subsidiary Atlas Air, Inc. has entered into a long-term agreement with FedEx to provide two 747-400 freighter aircraft on a full-time aircraft, crew, maintenance and insurance (ACMI) basis. This new agreement is in addition to the company’s existing multi-year peak season contract that provides FedEx with a minimum of five aircraft during the fourth quarter.

Both 747-400 freighters have entered service and are flying on behalf of FedEx to support their growing express and e-commerce network.

“We are pleased to grow our long-term relationship with FedEx. This agreement reflects the continued strong demand for airfreight capacity, particularly in the express and e-commerce markets,” said John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide. “Atlas is a leader in supporting express networks, with a focus on operating the most modern, fuel-efficient aircraft to deliver high levels of on-time performance for our customers.”

Atlas Air Worldwide orders four new Boeing 747-8 freighters, the last Boeing will build

Atlas Air Worldwide Holdings, Inc. announced today it has ordered four new Boeing 747-8 freighters in a transaction that furthers the company’s strategic growth plan. The aircraft will enable the company to meet strong customer demand in the airfreight market, particularly the fast-growing e-commerce and express sectors.

The company’s business model provides the flexibility to operate these new aircraft for customers or take advantage of dry-leasing opportunities through its Titan Aviation Leasing subsidiary.

The Boeing 747-8 freighter is the most capable, technologically advanced and environmentally conscious widebody freighter. The 747-8F provides 20% higher payload capacity and 16% lower fuel consumption than the very capable 747-400F, and has 25% higher capacity than the new-technology 777-200LRF. It is also the only factory-built freighter with nose-loading capability in production, which will serve the long-term needs of the airfreight market. Atlas is the world’s largest operator of Boeing 747 freighter aircraft, with a total of 53 in its current fleet, including 10 747-8Fs, 34 747-400Fs, five passenger 747-400s, and four Large Cargo Freighters (LCFs).

Atlas’ investment in these new aircraft underscores its ongoing commitment to environmental stewardship through the reduction of noise, aircraft emissions and resource consumption. The 747-8F meets or exceeds the strictest International Civil Aviation Organization (ICAO) emissions standards and meets global noise regulations with unlimited deployment. The advanced engines on the 747-8F reduce noise by approximately 30% compared to the previous generation of aircraft.

The new 747-8F order will also provide the company with enhanced flexibility to balance future capacity needs with customer demand, as a number of its legacy 747-400F aircraft leases will be up for renewal over the next several years.

The 747-8Fs are expected to be delivered from May through October 2022. These aircraft are the last four 747-8Fs that Boeing plans to produce.

Atlas Air has 53 747s in its current fleet, making it the largest 747 operator in the world.

Atlas Air aircraft photo gallery:

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Atlas Air Worldwide announces guaranteed interview program for pilots at GoJet Airlines

Atlas Air Worldwide Holdings, Inc. today said that its Atlas Air, Inc. unit and GoJet Airlines have entered an agreement guaranteeing GoJet pilots an interview with Atlas after as little as one to two years of service. First Officers with military flying experience will be eligible to interview with Atlas after just one year of service at GoJet, while all other pilots will be eligible to interview after a minimum of two years of service.

The world’s largest operator of modern Boeing 747 all-cargo aircraft, Atlas Air Worldwide is widely recognized as a leading global provider of outsourced aircraft and aviation operating services. With a focus on express, e-commerce and fast-growing markets, the company is in an era of significant business growth and development, with opportunities to expand its cargo and passenger operations with existing customers and with new ones.

“This agreement opens the door for GoJet pilots to potentially fly the Boeing 747 or 767, among the most storied aircraft in aviation history,” added GoJet Director of Flight Operations Randy Bratcher. “The opportunity to join the Atlas team and operate big Boeings all over the world is a very attractive career move for our pilots.”

Current GoJet pilots with the requisite time in service may immediately opt-in to the Atlas guaranteed interview program, while new GoJet pilots may do so as soon as time-in-service requirements are met.

With GoJet mentoring and a guaranteed interview, pilots invited to join Atlas can look forward to advancing their careers with a growing global air carrier, the opportunity to fly wide-body Boeing aircraft, and airline transportation to and from their base.

All photos by Atlas Air and GoJet Airlines.

Atlas Air Worldwide acquires two ex-LATAM Boeing 777 freighters for ACMI service for DHL Express

Atlas Air Worldwide Holdings, Inc. acquires Southern Air and Florida West

Atlas Air Worldwide Holdings, Inc. has announced the acquisition of two Boeing 777F Freighters from LATAM Airlines.

Both 777 aircraft will operate in ACMI (aircraft, crew, maintenance and insurance) service for DHL Express through Atlas’ Southern Air subsidiary, with the first starting service this month and the second expected to begin service at the end of the second quarter of 2018.

The first of the two aircraft was previously operated on a CMI (crew, maintenance and insurance) basis for DHL Express by Southern Air. The second aircraft will increase the number of 777 freighters owned or operated by the company to 12.

The expected financial and operating impacts of the two 777 freighters in 2018 were incorporated in the company’s earnings growth framework announced on February 22, 2018. As indicated, the company anticipates that its full-year 2018 adjusted net income will grow by a mid-twenty-percent level compared with 2017.

Copyright Photo: Southern Air (2nd)-DHL Boeing 777-FZB N775SA (msn 37987) ANC (Michael B. Ing). Image: 920329.

DHL-Southern Air aircraft slide show:

 

Atlas Air Worldwide reports record fourth quarter results, strong outlook for 2018, will add four more Boeing 747-400s

Airline Color Scheme - Introduced 2000

Atlas Air Worldwide Holdings, Inc. has announced record fourth quarter and full-year 2017 revenue, record fourth-quarter earnings and robust full-year earnings growth, and a continued strong outlook in 2018.

“2017 was an exciting year for Atlas and we expect that to continue in 2018,” said President and Chief Executive Officer William J. Flynn.

“The strategic initiatives that we have put in place over many years have transformed our company. Our focus on express, e-commerce and fast-growing Asian markets has broadened our customer base and fleet. As a result, we were well-positioned to capitalize on market dynamics and deliver fourth-quarter and full-year volumes, revenues, EBITDA and net income that grew sharply compared to the prior-year.

“In addition, our fourth quarter and full-year results benefited from the passage of the U.S. Tax Cuts and Jobs Act in late December, which generated a significant gain related to the revaluation of our net deferred tax liabilities.

“We expect the new tax legislation to have a positive impact on economic activity and corporate growth. On passage of the law, we were pleased to provide a one-time bonus of $1,000 to our global personnel in recognition of their hard work and commitment to the company’s growth.”

Turning to 2018 and beyond, Mr. Flynn stated: “We are operating in a strong airfreight environment, underpinned by global economic growth.

“We see tremendous opportunity for continued growth in the express and e-commerce markets, fueled by a bourgeoning middle class with higher levels of disposable income. Further globalization will require expansive and time-definite air networks to facilitate the international flow of goods.

“From a regional perspective, we believe Asia is key. It is an important geography to global trade, the source of 40% of global airfreight demand, and the main contributor to the expanding global middle class.

“In addition to the demand we are seeing for our aircraft and services, we are capitalizing on the quality, scale and scope of our operations to drive our revenues and earnings to greater levels. As a result, we expect our adjusted net income to grow by a mid-twenty-percent level in 2018 compared with 2017, including the benefit of a lower corporate income tax rate.

“By comparison, even without any benefit from tax reform, we would have expected our 2018 adjusted net income to grow by a teens percentage.”

Fourth-Quarter Results

Volumes in the fourth quarter of 2017 increased 18% to 71,563 block hours, with revenue growing 19% to a record $628.0 million.

Reported income from continuing operations, net of taxes, during the period totaled $209.5 million, or $6.71 per diluted share, compared with $28.7 million, or $1.12 per diluted share, in the fourth quarter of 2016. Reported results for the latest quarter included a $130.0 million benefit related to the revaluation of our deferred tax liabilities as well as an unrealized gain on outstanding warrants of $23.7 million. Results in the year-ago period included an unrealized loss of $27.9 million on outstanding warrants.

On an adjusted basis, income from continuing operations, net of taxes, in the fourth quarter of 2017 increased 13% to a record $66.6 million, or $2.43 per diluted share, from adjusted income of $59.0 million, or $2.24 per diluted share, in the year-ago quarter. EBITDA, as adjusted, increased 14% to $162.7 million.

Record ACMI segment revenues and contribution in the fourth quarter of 2017 were primarily driven by significant growth in block-hour volumes, partially offset by higher line maintenance and labor-related operational disruptions. Block-hour growth during the period reflected 747-400 flying for several new customers, 747-8 flying for Cathay Pacific Cargo, additional seasonal flying for express operators, and the ramp-up of 767-300 operations for Amazon. Five new 767-300s were placed in service for Amazon during the quarter, raising the current number to 12, in line with our expectations when we began ramping up this new service in 2016 and in line with our expectations for a total of 20 aircraft by the end of 2018.

Prime Air (Atlas Air) Boeing 767-36N ER (F) N1093A (msn 30111) ONT (Michael B. Ing). Image: 937468.

Above Copyright Photo: Prime Air (Atlas Air) Boeing 767-36N ER (F) N1093A (msn 30111) ONT (Michael B. Ing). Image: 937468.

Prime Air-Atlas Air aircraft slide show:

Higher Charter segment contribution during the period was primarily driven by an increase in commercial yields, partially offset by higher maintenance costs, the redeployment of 747-8 and 747-400 aircraft to the ACMI segment, and labor-related operational disruptions. Higher average rates during the quarter primarily reflected the impact of strong commercial yields.

In Dry Leasing, higher segment contribution primarily reflected a reduction in interest expense due to the scheduled repayment of debt related to dry leased 777 aircraft and the placement of additional 767-300 converted aircraft.

Reported earnings in the fourth quarter of 2017 also included an effective income tax benefit rate of 95.7%, due mainly to the revaluation of our deferred tax liabilities as a result of the Tax Cuts and Jobs Act. On an adjusted basis, our results reflected an effective income tax rate of 31.4%.

Full-Year Results

Volumes in 2017 increased 20% to 252,802 block hours, with revenue growing 17% to a record $2.16 billion.

For the twelve months ended December 31, 2017, our continuing operations generated income of $224.3 million, or $8.68 per diluted share, which included the $130.0 million benefit related to the revaluation of our deferred tax liabilities, partially offset by an unrealized loss on financial instruments of $12.5 million related to outstanding warrants. For the twelve months ended December 31, 2016, our income from continuing operations totaled $42.6 million, or $1.70 per diluted share, including the negative impacts of transaction-related expenses and warrant accounting totaling $25.0 million.

On an adjusted basis, income from continuing operations in 2017 increased 17% to $133.7 million, or $4.93 per diluted share, compared with $114.3 million, or $4.50 per diluted share, in 2016. EBITDA, as adjusted, rose 12% to $428.6 million.

Reported earnings in 2017 also included an effective income tax benefit rate of 56.5%, due mainly to the revaluation of our deferred tax liabilities as a result of the Tax Cuts and Jobs Act. On an adjusted basis, our results reflected an effective income tax rate of 28.4%.

Cash and Short-Term Investments

At December 31, 2017, our cash, cash equivalents, short-term investments and restricted cash totaled $305.5 million, compared with $142.6 million at December 31, 2016.

The change in position resulted from cash provided by operating and financing activities, partially offset by cash used for investing activities.

Net cash provided by financing activities during 2017 primarily reflected proceeds from our issuance of convertible notes and our financings of 767-300 aircraft, partially offset by payments on debt obligations. During the fourth quarter of 2017, we completed the financings of six additional 767-300 aircraft, which generated cash of $145.8 million.

Net cash used for investing activities during 2017 primarily related to capital expenditures and payments for flight equipment and modifications, including the acquisition of 767-300 aircraft to be converted to freighter configuration, spare engines and GEnx engine performance upgrade kits.

2018 Outlook

We expect to report strong earnings growth in 2018.

We begin 2018 with solid demand from our customers for our aircraft and services. With the essential building blocks we have set in place, we see opportunities to grow with existing customers and to add new ones.

Globally, economic activity is expanding. The airfreight market is strong, and airfreight tonnage continues to grow from record levels.

As a result, we expect significant growth in our volumes, revenue and adjusted EBITDA in 2018. We see volumes rising to around 300,000 block hours, revenue growing to approximately $2.5 billion, and adjusted EBITDA of about $500 million.

We anticipate that our full-year 2018 adjusted net income will grow by a mid-twenty-percent level compared with 2017, including the benefit of tax reform. Without tax reform, we would have expected our adjusted net income to grow by a teens percentage this year. We expect our full-year 2018 adjusted income tax rate to be approximately 17%.

Given the inherent seasonality of airfreight demand, we anticipate that results in 2018 will reflect historical patterns, with more than 70% of our adjusted net income occurring in the second half. In addition, we expect adjusted EBITDA of approximately $90 million in the first quarter of 2018, and adjusted net income to be approximately double adjusted net income of $8.3 million in the first quarter of 2017.

For the full year, we anticipate total block hours will increase approximately 19% compared with 2017, with about 75% of our hours in ACMI and the balance in Charter. To meet the anticipated increase in ACMI and Charter demand, we have entered into operating leases for six Boeing 747-400 freighter aircraft. Two of these aircraft entered service in the third quarter and fourth quarter of 2017; four will enter service throughout 2018.

Aircraft maintenance expense in 2018 is expected to total approximately $315 million, mainly reflecting an increase in daily line maintenance due to the anticipated growth in block hours. Depreciation and amortization is expected to total approximately $220 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are expected to total approximately $100 to $110 million, mainly for parts and components for our fleet.

Top Copyright Photo: Atlas Air Boeing 747-47UF N415MC (msn 32837) ANC (Michael B. Ing). Image: 925067.

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