Third-quarter results: Atlas Air income down from 2021

Air cargo airline and dry lease solutions provider Atlas Air reported its financial and operating results for the third quarter of 2022.

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«We continued to see strong demand for our services during the third quarter», noted John W. Dietrich, President and CEO of Atlas Air Worldwide.

«Notwithstanding this strong demand, our third-quarter performance was impacted by operational disruptions related to an increase in COVID-19 cases, particularly in July and August, as well as the effects of Hurricane Ian at the end of the quarter», he added.

Atlas Air’s key financial and operating results in the third quarter of 2022

• Reported net income of 60.1 million dollars, or 1.79 dollars per diluted share. In the third quarter of 2021, the company had reported a net income of 119.5 million, or 3.91 dollars per diluted share.
• Gross operating profit of 194 million dollars, down from 280.5 million reported in the same period of 2021.
• Adjusted net income of 78.8 million dollars, or 2.69 dollars per diluted share. In the third quarter of 2021, the company had recorded a net income of 145.4 million, or 4.88 dollars per diluted share.
• On an adjusted basis, the results reflected an effective income tax rate of 22.6%.
• At 30 September 2022, the company had 476 million dollars in cash on hand, down from the 921 million reported at the end of 2021. This result is explained by cash spending for investing and financing activities, which included the use of 290.1 million dollars for pre-delivery payments for new aircraft.
• Atlas Air operated a total of 79.274 block hours between July and September this year. This represents a down from the 90.363 block hours reported in the same period of 2021.
• The carrier took delivery of a Boeing 747-8F in October, the second such aircraft to join the fleet during 2022. According to the delivery schedule provided by the manufacturer, Atlas Air plans to take delivery of two more aircraft during the last quarter of this year and the first quarter of 2023.

Third quarter balances and projections for the last three months of the year

On 4 August, Atlas Air signed a definitive agreement to be acquired by a group of investors led by funds managed by affiliates of Apollo Global Management, along with investment affiliates of J.F. Lehman & Company and Hill City Capital.

«In light of this pending acquisition, Atlas Air Worldwide will not hold an earnings conference call or provide forward-looking guidance», the company said in a press release.

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Atlas Air will hold a special meeting of shareholders in connection with the transaction on 29 November. The company expects to complete the process in the fourth quarter of this year or during the first quarter of 2023.

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