- Reactivated three B747 converted freighters that had been parked
- Began operating a B777F previously in its dry-leasing business.
Atlas Air Worldwide (AAW) will make an interim pay increase of 10% to its pilots pilot unions at Atlas Air and Southern Air, beginning in May.
Announcing its first quarter 2020 results, the US-based freighter lessor said: “After a slow start, and despite the continual and varying operational challenges and uncertainties related to COVID-19, we ended the quarter with results that exceeded our expectations.”
AAW Q1 net income Increased to $23.4m, adjusted EBITDA grew to $121.2m and adjusted net income to $29.9m.
AAW president and chief executive John Dietrich said: “Our results reflected increased charter cargo demand and higher airfreight yields in March. They also reflect the vital role that Atlas plays in supporting the global economy and our customers by keeping goods moving.
“From parts and components used in manufacturing processes to finished products, food, pharmaceuticals, supplies and other cargo, businesses and individuals count on Atlas.”
Dietrich added: “The strong demand for airfreight has carried into the second quarter. To meet that demand, we reactivated three of our 747 converted freighters that had been parked, and began operating a 777F that was previously in our dry-leasing business.
“At the same time, we are mindful of the evolving and uncertain environment and the importance of prudent financial management. We are taking actions to reduce costs and enhance liquidity, including significantly reducing discretionary spending, limiting our hiring for certain positions and selling nonessential assets.”
On the pay increases, Dietrich said: “We wanted to provide this interim increase to our pilots who are working so hard during this difficult time. Reaching this agreement with our IBT Locals underscores our deep appreciation of the efforts of our pilots.
“While we continue to manage through this current pandemic situation, we also remain focused on completing the joint collective bargaining agreement we have been pursuing in connection with the merger between Atlas Air and Southern Air.”
The lessor expects to fly approximately 80,000 block hours in the second quarter of 2020, with revenue of approximately $770m, and adjusted EBITDA of about $165m.
