Atlas Air Worldwide happy with 2015

Atlas Air 747-8F Artwork

Atlas Air 747-8F Artwork

After a solid performance in 2015 and a robust fourth quarter, William Flynn, president and CEO of Atlas Air Worldwide Holdings (AAWW), said the company is positioned for earnings and growth in 2016.

After adjusting for a US$100 million one-time charge to settle a class-action lawsuit, presumably the cargo cartel case that dragged on for 10 years, AAWW reported fourth quarter net income of $39.4 million, up 1.5 percent year-over-year. However, total operating revenue declined 3.4 percent to $472 million for a total operating loss of $43.7 million and a net loss of $37.6 million for Q4 2015.

For the full year of 2015, the company had a net operating loss of $43.7 million, compared to $60 million net operating profit in 2014. Total operating revenue was $472 million, compared to $488 million in 2014.

Flynn said the company added a tenth 747-8 freighter, increased its CMI operations by four 767s, returned a 747-400BCF to the  global charter part of the business, and expanded its dry-leasing portfolio to include two 767 aircraft that will also operate on a CMI basis.

“In addition, we refinanced higher-cost debt on two 747-8s and five 747-400 freighters, enabling us to reduce our cost of debt, increase cash flows, enhance adjusted earnings per share, unencumber these 747-400s and add flexibility to our fleet,” Flynn said.

Additionally, Atlas Air Worldwide is in the process of acquiring Southern Air in an all-cash deal for approximately $110 million, which Flynn said will be immediately accretive. DHL, which is AAWW’s biggest customer is said to be supportive of the acquisition.

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