Tag Archives: 747-400F

Centurion Cargo to return to Amsterdam

Centurion Cargo (Miami) will restore the Miami-Amsterdam route on February 19 with Boeing 747-400F freighters per Cargo Facts. The carrier dropped its only European route last year. The company is restoring services and redeploying its previously parked aircraft.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 747-4R7F N901AR (msn 25868) taxies in the past at Amsterdam.

Centurion Cargo aircraft slide show:

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UPS pilots picket the UPS investor conference

The Independent Pilots Association, representing the pilots of UPS-United Parcel Service (UPS Airlines) (Atlanta and Louisville) provided an informational picket line yesterday (November 13) at the 2014 UPS Investor Conference. The union issued this statement:

The UPS pilots, represented by the Independent Pilots Association, conducted an information picket at the 2014 UPS Investor Conference held at the Grand Hyatt New York.

“We conducted this picket to inform the investment community that UPS has neglected its airline operations by failing to finalize the pilot contract,” said IPA President, Captain Robert Travis. “We prefer to reach a negotiated agreement with UPS, but with our talks now entering a fourth year, we question whether UPS is equally committed to a resolution.”

“UPS pilots have reaffirmed our intention to fly this Christmas by not seeking a release from the National Mediation Board. This holiday season, we remain committed to safe and reliable delivery,” said Travis. Under the Railway Labor Act a request for release, if granted by the NMB, could lead to a 30-day countdown to a strike, or lockout.

The IPA invites the investment community to learn more about its dispute with UPS at http://www.ipapilot.org. “Investors will want to stay informed. As UPS pilot labor talks continue, we will keep you apprised of developments” said Travis.

UPS and IPA have been following the Railway Labor Act process for the last 39 months; direct negotiations for 29 months and mediated talks for the past 10 months. Direct negotiations began in September 2011 and continued through January 2014. In early 2014, UPS and IPA jointly requested federal mediation. The National Mediation Board docketed the case in February 2014 and assigned a staff mediator to oversee further negotiations. The parties have been in mediated talks since February 2014.

The Independent Pilots Association represents the 2,600 pilots who fly globally for United Parcel Service.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-4R7F N582UP (msn 29053) lands in beautiful Anchorage, Alaska.

UPS aircraft slide show: AG Slide Show

Atlas Air Worldwide Holdings reports adjusted net income of $27.4 million for the third quarter

Atlas Air Worldwide Holdings, Inc. (Atlas Air and Polar Air Cargo) (New York) has issued this financial statement for the third quarter:

Atlas Air Worldwide Holdings, Inc. announced adjusted net income attributable to common stockholders of $27.4 million, or $1.09 per diluted share, for the three months ended September 30, 2014, compared with $28.6 million, or $1.13 per diluted share, for the three months ended September 30, 2013.

On a reported basis, net income attributable to common stockholders in the third quarter of 2014 totaled $27.6 million, or $1.10 per diluted share, compared with $23.7 million, or $0.94 per diluted share, in the year-ago quarter.

AAWH recently placed three incremental Boeing 747 freighters, a 747-8F and two 747-400Fs, into ACMI service for the benefit of DHL Express and Etihad Cargo, the fast-growing freight division of Etihad Airways. The placements increase the number of our aircraft in ACMI to 22 from 19.

In addition, AAWH recently announced the expansion of our 767 CMI service in North America for DHL Express. This expansion covers four incremental 767-200 freighter aircraft owned by DHL that we expect to begin flying during the first quarter of 2015.

Adjusted earnings in the third quarter of 2014 excluded a tax adjustment of $0.1 million, or $0.01 per diluted share, related to the company’s Global Supply Systems Limited subsidiary. Adjusted earnings in the third quarter of 2013 excluded an after-tax loss of $4.5 million, or $0.18 per diluted share, on the early extinguishment of debt, and a loss of $0.3 million, or $0.01 per diluted share, on the disposal of aircraft.

Third-Quarter Results

Profitability in our ACMI business during the third quarter reflected an increase in 747-8F revenue and an increase in CMI flying, offset by an increase in maintenance expense on our -8F aircraft and lower 747-400 flying by certain ACMI customers.

In Dry Leasing, revenue and profitability grew following the addition of three 777F aircraft in January 2014 and two in July 2013, which raised our 777F fleet count to six. Each of these aircraft are leased to customers on a long-term basis.

Results in AMC Charter benefited from an increase in block hours and aircraft utilization, partially offset by a decrease in revenue per block hour due to a reduction of the average “pegged” fuel price set by the AMC. Stronger than expected demand for cargo flying and incremental passenger flying as a result of former competitors exiting the AMC Charter market drove contribution growth in the third quarter.

Profitability in Commercial Charter primarily reflected an increase in volumes and improvement in aircraft utilization compared with the third quarter of 2013. Charter operations during the quarter benefited from the broad-based uptick in demand, partially offset by additional travel and ground handling expenses from flying to high-cost locations.

Reported earnings for the period included an effective income tax rate of 29.1%, reflecting the ongoing beneficial impact of lower taxes for certain foreign subsidiaries in our Dry Leasing business.

Nine-Month Results

For the nine months ended September 30, 2014, adjusted net income attributable to common stockholders totaled $54.7 million, or $2.17 per diluted share, compared with $54.9 million, or $2.13 per diluted share, for the nine months ended September 30, 2013.

On a reported basis, nine-month 2014 net income attributable to common stockholders totaled $65.1 million, or $2.59 per diluted share, compared with $63.9 million, or $2.48 per diluted share, in the first nine months of 2013.

Cash and Short-Term Investments

At September 30, 2014, our cash, cash equivalents, short-term investments and restricted cash totaled $287.7 million, compared with $339.2 million at December 31, 2013.

The change in position reflected cash provided by operating and financing activities offset by cash used for investing activities.

Net cash used for investing activities during the first nine months of 2014 primarily related to the purchase of three 777F aircraft for our Dry Leasing business.

Net cash provided by financing activities primarily reflected proceeds from the issuance of debt in connection with the acquisitions of these aircraft. Those proceeds were partially offset by payments on debt obligations and debt issuance costs.

Share Repurchases

During the third quarter, we repurchased 458,937 shares of our common stock for $15.0 million, or 1.8% of our outstanding common stock at June 30, 2014.

Future repurchases under our remaining $45.0 million authority may be made at our discretion, and the actual timing, form and amount will depend on company and market conditions.

Outlook

Airfreight volumes continue to improve, and recent industry reports suggest that airfreight demand will grow by several percentage points in 2014 – outpacing supply and driving the first real growth since 2010. We are seeing a general increase in demand across all regions, with the greatest growth in the transpacific market. An increase in online shopping and several new high-tech product launches during peak season also continue to favor airfreight.

As a result, AAWH anticipates adjusted and reported fully diluted earnings per share of approximately $1.33 to $1.43 in the fourth quarter. AAWH is also raising its full-year 2014 adjusted earnings outlook to approximately $3.50 to $3.60 per diluted share, and our reported earnings outlook to approximately $3.92 to $4.02.

For the full year, the company expects to fly approximately 160,000 block hours, with more than 70% in ACMI, approximately 10% in AMC Charter, and the balance in Commercial Charter. The Dry Leasing segment should show dramatic growth compared with 2013. While our share of military flying, mainly in passenger service, has increased due to our ability to capitalize on additional flying opportunities and a reduction in the number of carriers serving the market, we expect an overall decline in military demand in the fourth quarter of 2014 compared with 2013.

The company also expects aircraft maintenance expense to total approximately $190 to $195 million in 2014, primarily due to performing several conditions-based engine overhauls for our 747-400 fleet during the fourth quarter. Depreciation this year is anticipated to total approximately $120 million, and core capital expenditures are expected to total about $30 to $35 million, mainly for spare parts for our expanded fleet.

Copyright Photo: The relationship with DHL continues to expand. Polar Air Cargo’s Boeing 747-47UF N416MC (msn 32838) taxies at Los Angeles.

Atlas Air: AG Slide Show

Polar Air Cargo: AG Slide Show

DHL-Polar Air Cargo: AG Slide Show

UPS reports its third quarter operating profit increased 7.8% to $1.3 billion, expects holiday packages to increase by 11%

UPS (United Parcel Service) (UPS Airlines) (Atlanta and Louisville) issued this financial statement:

UPS has announced diluted earnings per share of $1.32 for the third quarter 2014, a 13.8% improvement over the prior year period. Operating profit increased 8.3%, resulting from balanced growth across all three segments.

Daily packages in the U.S. were 6.9% higher as demand from both B2C and B2B customers improved. International Export shipments increased 9.4% with strong growth in both Asia and Europe. UPS delivered 1.1 billion packages around the world, up 6.9% over the third quarter 2013.

Cash Flow

For the nine months ended Sept. 30, UPS generated $2.8 billion in free cash flow. The company paid dividends of $1.8 billion, up 8.1% per share over the prior year, and repurchased 20.6 million shares for approximately $2.1 billion.

U.S. Domestic Package

U.S. Domestic revenue increased to $8.7 billion, up 5.3% over the third quarter 2013. Daily package volume improved 6.9%, led by gains in UPS Ground and Deferred products up 7.7% and 5.9%, respectively. E-commerce continued to drive strong B2C growth, while B2B deliveries were also higher this quarter.

Operating profit was $1.3 billion, up 7.8%. Operating margin expanded 30 basis points to 14.7%. The segment experienced positive operating leverage as investments in new technology and capacity helped lower costs.

Total revenue per package declined 1.5% as base rate improvements were offset by changes in customer and product mix. UPS SurePost shipments increased more than 50%, contributing to the mix change.

During the quarter, UPS announced the expansion of its Access Point alternate delivery solution to the New York City and Chicago areas. Plans were announced to add locations in other U.S. cities, in addition to more than 4,400 existing UPS Stores, by the end of 2015.

International Package

International revenue increased 5.5% to $3.2 billion on daily package growth of 6.7%. Export products jumped 9.4% with gains from all regions of the world. Shipments out of Asia grew 16% and Europe was up 14%.

Operating profit improved 10.3% to $460 million. Operating margin expanded 70 basis points over the prior year period, to 14.5%. Revenue and cost initiatives implemented during the quarter contributed to the margin improvements.

Currency-neutral revenue per package declined 1.0% due to changing product mix and continued strength in shorter trade lanes. Non-premium products continue to outpace premium, putting pressure on yield.

On October 7, UPS announced the acquisition of international e-commerce enabler i-parcel, LLC. The company’s experience and technology in cross-border e-commerce assists U.K. and U.S. based retailers expand their reach to consumers in over 100 countries worldwide.

Supply Chain & Freight

Supply Chain and Freight revenue was up 7.4% to $2.4 billion, resulting primarily from growth in the Distribution and UPS Freight business units. Operating profit was 7% higher at $215 million, and operating margin was 8.9%.

Forwarding revenue was higher primarily due to increased International Air Freight (IAF) tonnage which was aided by high-tech product launches and Government sector gains. Operating profit improvements in North American Air Freight and Ocean Forwarding were more than offset by continued pricing pressure in IAF.

Distribution revenue increased more than 10% over the same quarter last year. Strong demand from Healthcare and Retail sector customers contributed to the growth.

UPS Freight revenue increased 7.9% to $810 million. LTL shipments were 4.7% higher and revenue per hundredweight improved 1.1%. Operating profit and margin expanded from the third quarter last year.

Outlook

The company announced its expectations for the upcoming holiday season. UPS expects shipments delivered during the month of December to climb 11% over the prior year. As previously announced, the company committed an additional $175 million in operating expense and $500 million in capital expenditures to enhance its capabilities and prepare the network for peak and future volume growth.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 747-4R7F N582UP (msn 29053) departs from Anchorage.

UPS Aircraft Slide Show: AG Slide Show

Video: Plane Pull at Miami: UPS Americas employees, friends and family showed their support for United Way of Miami-Dade by coming out to pull a Boeing 757 weighting more than 110,000 lb. at the UPS Americas 2014 Plane Pull. The high temperatures didn’t stop the attendance of more than 250 people at the fundraiser event. Together, we pulled for a great cause.

Polar Air Cargo to operate two additional Boeing 747s for DHL Express

Atlas Air Worldwide Holdings, Inc. (New York) today announced the placement of two incremental Boeing 747 freighters into ACMI service with DHL Express.

The two aircraft, a Boeing 747-800F and a 747-400F, will be operated in Polar Air Cargo Worldwide’s express network under an ACMI arrangement for the benefit of DHL Express. Operations are scheduled to begin on October 26, 2014.

When the new ACMI service begins, Polar’s express network will total twelve 747 freighters, consisting of five Boeing 747-800Fs and seven 747-400Fs, in ACMI on behalf of DHL and Polar’s other customers. Atlas also will continue to operate a fleet of Boeing 767 Freighters in CMI service for DHL, with 11 aircraft in operation by the end of January 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Polar Air Cargo’s Boeing 747-46NF N451PA (msn 30809) arrives in Los Angeles.

DHL-Polar Air Cargo: AG Slide Show

National Airlines helps to bring medical and relief supplies to Monrovia, Liberia

National Airlines (5th) (formerly Murray Air) (Orlando) is helping in the Ebola relief efforts in Liberia. In cooperation with the United States Government, National Airlines, using one of its Boeing 747-400 Freighters, carried a planeload of medical and other relief supplies from New York to the Monrovia Airport.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Formerly operated by Air France, Boeing 747-428 (F) N952CA (msn 25238) arrives at Washington’s Dulles International Airport (IAD).

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National Airlines (5th): AG Slide Show

CDC Map of affected Ebola areas in West Africa:

CDC Map - Ebola Affected Areas in West Africa

Centurion Cargo could lose 5 of its freighters, pilots furloughed

Centurion Cargo (Miami) is struggling according to this report by the South Florida Business Journal.  According to the report, “five statutory trusts based in Dublin, Ireland filed a lawsuit in federal court on August 29 against Miami-based Centurion and its Sky Lease I affiliate. It claims the companies are delinquent on $10.2 million in lease payments on five aircrafts: one Boeing 747-400F and four McDonnell Douglas MD-11Fs.”

Until now the airline has not returned the aircraft.

The company was originally founded on November 8, 1985 as Challenge Air Cargo Inc. After many years in the business, on July 20, 2001 Challenge Air Cargo Inc. changed its name and started operating as Centurion Air Cargo Inc.

According to the airline, Centurion Cargo is a privately owned company founded in 2001.Based at Miami International Airport it currently operates a 550,000 square foot warehouse (51,097 square meters); divided into two different sections; a 159,000 square foot (14,772 square meters) Cooler and 391,000 square foot (36,325 square meters) Dry Cargo Area, the Centurion Cargo Center is by far the largest privately owned all cargo airline facility in North America, and operates a fleet of ten MD-11Fs and three 747-400ERFs.

Read the full story: CLICK HERE

Update: Late on September 10, 2014 all pilots of Centurion Cargo received furlough notices.

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 747-4R7F N901AR (msn 25868) arrives in Philadelphia.

Centurion Cargo: AG Slide Show