Atlas Air Worldwide Holdings (AAWW) saw second-quarter 2020 net income of $78.9m, compared with net income of $86.9m in the second quarter of 2019.
On an adjusted basis, EBITDA totalled $247.0m in the second quarter this year compared with $84.1m in the second quarter of 2019. Adjusted net income in the second quarter of 2020 totalled $123.2m compared with $4.5m in the second quarter of 2019.
“Revenue and earnings in the second quarter continued to exceed our expectations,” said Chief Executive Officer John Dietrich.
“These positive results were primarily driven by the team capitalizing on strong demand and higher yields in our commercial charter and South America businesses. We also continued to provide the US military with essential services and our ACMI customers flew well above their minimum guarantees.
“We continued to execute on very favourable business opportunities in a challenging operating environment, with the safety of our employees as our top priority. We leveraged the scale of our world-class fleet, the scope of our global operations and the flexibility of our business model to capitalize on market dynamics.
“To serve this increased demand, we reactivated three of our B747-400 converted freighters and operationalized a B777 freighter from our Dry Leasing business. This enabled us to serve the strong and profitable shorter-term demand, while also entering into numerous new long-term charter programs at attractive yields.
“We expanded our long-term charter business to include new agreements with manufacturers such as HP, and large freight forwarders like DHL Global Forwarding, APEX Logistics, DB Schenker, Flexport and Geodis, all that wanted to secure committed capacity from us.”
Dietrich added: “Reflecting our first-half results and our current market expectations, and subject to any material COVID- 19 developments, we anticipate full-year 2020 revenue of just over $3bn and adjusted EBITDA of approximately $750m.
“Our outlook also expects approximately 50% of our full-year 2020 adjusted net income to occur in the second half of the year. That would result in 2020 adjusted net income being more than double 2019.”
2020 Outlook
Said Dietrich: “Reflecting our first-half results and our current market expectations for the balance of the year, and subject to any material COVID-19 developments, we expect to fly more than 330,000 block hours in 2020, with about 70% of the hours in ACMI and the remainder in Charter.
“We also anticipate revenue of just over $3bn and adjusted EBITDA of approximately $750m. Our outlook also expects approximately 50% of our full-year 2020 adjusted net income to occur in the second half of the year. That would result in 2020 adjusted net income being more than double 2019.”
He continued: “Historically, we have generated the vast majority of our earnings in the second half of the year. This year, however, due to the strength of the first half, we anticipate our full-year 2020 adjusted net income to be more evenly split between the first and second half.
“Our second-quarter results this year benefited from commercial charter yields that were significantly above typical levels and from a $24.3m (after tax) refund of excess aircraft rent paid in previous years.
“For the third quarter of 2020, we expect commercial charter yields to moderate from the second quarter, but still remain elevated compared with typical yields for this time of year.”
