Atlas Air 2009 earnings to exceed guidance
Atlas Air Worldwide Holdings expects fourth-quarter 2009 net income to exceed $1.10 per diluted share, or $26.5 million, exceeding the Company's previous expectations of more than $0.74 per diluted share, or $18.0 million, for the quarter. Full-year 2009 net income is expected to total more than $3.48 per diluted share, or $75.9 million, compared with previous expectations of over $3.09 per diluted share, or $67.4 million.
"Our strong earnings performance in the fourth quarter was driven by a combination of a significantly improved peak-season airfreight demand, a tight supply environment, and continued strength in military charter demand," said William J. Flynn, President and Chief Executive Officer of AAWW. "Results for the quarter and the full year also reflected the strategic actions we have taken to transform our business, our operating cost base, and our fleet throughout 2008 and 2009.
"Low inventory levels and stronger-than-expected holiday demand during the fourth quarter generated yields in our charter segment not seen since the ports on the U.S. west coast were shut down for labor disputes back in the fourth quarter of 2002. Peak charter yields were a major contributor to the improvement in earnings relative to our previous expectations for the fourth quarter.
"In addition to the strong performance in our charter segment, the robust airfreight environment in the quarter enabled all of our ACMI customers to fly above minimum guaranteed block hours for the period.
"The fourth quarter reflected encouraging trends for airfreight generally, and was consistent with the views of tightening supply that we expressed throughout 2009. Although airfreight demand levels improved meaningfully in the fourth quarter of 2009, the charter yields experienced in the quarter have seasonally subsided going into first quarter of 2010. We will continue to closely monitor the pace of economic growth going into 2010 as a driver of further improvement."
AAWW expects to report 2009 financial and operating results on February 24, 2010. The Company also expects to speak to the 2010 outlook in further detail at that time.