Category Archives: DHL Express

Atlas Air Worldwide Holdings reports first quarter net income of $7.9 million, places two Boeing 747-8F freighters with DHL

Atlas Air Worldwide Holdings (Atlas Air and Polar Air Cargo) (New York) reported first quarter net income of $7.9 million, down 60.4 percent from the same quarter a year ago

Atlas Air Worldwide Holdings is the parent company of Atlas Air and Titan Aviation Leasing and majority owner of Polar Air Cargo.

The company issued this full statement:

Atlas Air Worldwide Holdings, Inc. announced adjusted net income attributable to common stockholders of $11.3 million, or $0.45 per diluted share, for the three months ended March 31, 2014, compared with $5.9 million, or $0.22 per diluted share, for the three months ended March 31, 2013.

On a reported basis, net income attributable to common stockholders in the first quarter of 2014 totaled $7.9 million, or $0.32 per diluted share, compared with $20.1 million, or $0.76 per diluted share, in the year-ago quarter.

Adjusted earnings in the first quarter of 2014 exclude a special charge of $3.4 million after tax, or $0.13 per diluted share, mainly related to the company’s U.K. affiliate, Global Supply Systems Limited. Adjusted earnings in the first quarter of 2013 exclude an income tax benefit of $14.2 million, or $0.54 per diluted share, related to the tax treatment of extraterritorial income.

“2014 is off to a good start, led by the initiatives we’ve undertaken to diversify our business mix, expand our aircraft and service offerings, develop new customers and position Atlas to take advantage of market opportunities,” said William J. Flynn, President and Chief Executive Officer.

“Within our ACMI segment, results benefited from an increase in the number of new 747-8 freighters in operation as well as an increase in flying for our CMI customers. In Dry Leasing, the investments we’ve made since early 2013 in attractive, modern 777 freighters on long-term leases with strong customers drove a significant increase in contribution from sources with highly predictable revenue and earnings streams.

“In addition, the expansion of our 767 aircraft service solutions and our growth into passenger charter operations supported the improvement in our results despite a seasonally soft contribution in Commercial Charter and the continued reduction in AMC Charter cargo volumes.

“Reflecting our global market leadership in outsourced aircraft assets and services, we have developed several new strategic customer relationships since the first quarter of 2013 that have enhanced the resilience of our business model.

“In ACMI, these include Astral Aviation, BST Logistics and Chapman Freeborn. We’ve also expanded with Etihad Airways, introduced new 767 cargo CMI service for DHL Express, and added VIP 767 passenger CMI service for MLW Air. And in Dry Leasing, we now provide 777Fs to Aerologic, Emirates Airlines and TNT Transport International.”

Separately, the company announced the placement of two 747-8 freighters in ACMI service for DHL Express. The state-of-the-art aircraft will provide additional revenue cargo volume for DHL’s transpacific network growth. They replace two 747-400 freighters currently in service for DHL that will enter immediate revenue service for Atlas.

Outlook

We are encouraged by our first-quarter performance and the positive direction of market trends so far in 2014, but we are maintaining our earnings outlook for the full year.

Airfreight volumes are improving, and recent forecasts suggest that airfreight demand will grow by a few percentage points in 2014 – the first real growth after three essentially flat years. Forecast airfreight yields continue to lag behind, however.

With still limited visibility into second-half airfreight market demand and yields, we continue to expect results in 2014 to approximate 2013, excluding an expected decline in our AMC Charter operations as we have previously discussed.

On a per share basis, earnings in the second quarter of this year should be similar to or slightly higher than our adjusted first-quarter earnings. As the majority of our earnings are typically generated in the second half of the year, we expect to update our expectations as the year progresses.

For the full year, we expect total block hours to be a few percentage points lower than 2013 block hours, with more than 70% in ACMI, less than 10% in AMC Charter, and the balance in Commercial Charter. Our Dry Leasing segment should show dramatic growth, with a contribution run rate in subsequent quarters that should be similar to the first quarter of 2014. Aircraft maintenance expense in 2014 should total approximately $175 to $180 million, and depreciation should be approximately $115 to $120 million. In addition, we anticipate an effective income tax rate of approximately 30%.

We remain confident in the resilience of our business model and our ability to leverage the scale and efficiencies in our operations. The business initiatives we have undertaken and the investments we have made have transformed the company to deliver meaningful earnings in any environment.

Should 2014 be the inflection point when growth returns to commercial airfreight and yields improve, our business initiatives and the investments we have made have positioned Atlas to be one of the prime beneficiaries.

Copyright Photo: Manuel Negrerie/AirlinersGallery.com. Atlas Air also operates the Boeing 767-300F freighter for DHL. Boeing 767-3JHF ER N643GT (msn 37809) arrives at Taipei (Taoyuan).

DHL-Atlas Air:

Atlas Air:

Polar Air Cargo:

Polar Air Cargo to start nonstop Cincinnati-Tokyo cargo service

Polar Air Cargo Worldwide, Inc. (New York) today confirmed its plans to initiate daily nonstop Boeing 747-400 express freighter service between Cincinnati, Ohio, and Tokyo, Japan, by the end of April 2013.

The new service will complement a daily 747-400 flight from the Japanese industrial city of Nagoya to Cincinnati, facilitating next-day deliveries to the U.S. from all major cities and industrial areas in Japan.

Polar also will double the frequency of its wide-body freighter connections to Australia from two to four days per week. The routing of this service, via Japan, will allow Polar customers such as DHL Express to optimize their intercontinental networks and introduce additional capacity both from the U.S. and from key North Asian markets to Australia. The increase in Polar’s frequencies will be supported by the introduction of two new Boeing 767-300ERF wide-body aircraft.

DHL-Polar Air Cargo:

Atlas Air to operate two Boeing 767-300 freighters for DHL in Asia

Atlas Air Worldwide Holdings, Inc. (New York) has announced its Atlas Air, Inc. (New York-JFK) unit will provide operating service on intra-Asian routes for two new Boeing 767-300 ERF aircraft owned by DHL Express beginning in the latter part of the first quarter 2013. Atlas Air will operate the aircraft for its sister company, Polar Air Cargo Worldwide, Inc., linking the intra-Asian flights with Polar’s existing transpacific, all-cargo services for DHL and other customers.

The new operation represents a continued expansion of Atlas Air’s asset-light CMI (Crew, Maintenance and Insurance) service solution, which was launched in 2010. CMI is expected to be a strategic driver of company revenues and earnings and improved business mix over the next few years and beyond.

With the addition of the new aircraft to the company’s operating certificate, Atlas Air’s fleet of Boeing 767s will increase to 10 aircraft.

Atlas Air:

Polar Air Cargo:

Atlas Air to operate two new Boeing 747-800F freighters for DHL Express

Atlas Air Worldwide Holdings, Inc. (New York-JFK) has announced that it has reached an agreement with DHL Express for placement of its sixth and seventh Boeing 747-8 Freighter aircraft.

These aircraft will be operated by Atlas Air Worldwide’s unit, Atlas Air, Inc., (New York-JFK) in the Polar Air Cargo Worldwide express network under an ACMI arrangement for the benefit of DHL Express commencing in the fourth quarter of 2012. These aircraft will be the first of their type to be flown for DHL Express and will operate in DHL’s Asian and trans-Pacific markets. These aircraft will replace two Boeing 747-400F Freighters that are currently in service for DHL Express and currently operated by Polar Air Cargo (above).

Atlas Air expects to receive an additional two 747-8Fs in the first half of 2013, for a total of nine aircraft, completing the delivery of its order program.

Atlas Air to operate a ninth Boeing 747-400 freighter for DHL

Atlas Air Worldwide Holdings, Inc. (New York) has announced the agreement to place a ninth Boeing 747-400 freighter into express network ACMI service for the benefit of DHL Express beginning in July 2012.

Atlas Air:

Atlas Air starts to operate the first Boeing 767-200F for DHL Express

Atlas Air (New York) has commenced Boeing 767-200F freighter service in North America for DHL Express under a previously announced long-term CMI (Crew, Maintenance and Insurance) contract.

Under the agreement, Atlas Air, Inc. will operate five Boeing 767-200 freighters owned by DHL in DHL’s North American network. The first of these aircraft started service this month and all five are expected to be operational by the third quarter of 2012.

Atlas crews will operate the aircraft on behalf of DHL on routings to and from DHL’s Cincinnati hub. Depending on routes flown, the eventual five aircraft are expected to generate a total volume of approximately 130 to 150 block hours per aircraft per month.

The business also highlights Atlas Air’s further expansion into a new, attractive gauge of aircraft, the Boeing 767, which is expected to be an important part of the company’s fleet strategy going forward. Atlas Air’s innovative 767 freighter and passenger operations complement its market-leading Boeing 747 freighter and passenger operations.

The company, through its Polar Air Cargo subsidiary, also provides time-definite, Boeing 747-400 freighter network service to DHL, primarily in the trans-Pacific trade lanes.

Top Copyright Photo: TMK Photography.

Middle Copyright Photo: Luimer Cordero.

Atlas Air Slide Show: CLICK HERE

Bottom Copyright Photo: James Helbock.

Polar Slide Show: CLICK HERE

AeroLogic takes delivery of first Boeing 777-FZN

AeroLogic (Leipzig) took delivery of its first (of eight) new Boeing 777-FZN (D-AALA, msn 36001) on May 12 via Deucalion Capital. The new cargo airline is a joint venture between Lufthansa Cargo and DHL Express and is expected to launch operations in the coming weeks.