Atlas Air updates 2008 outlook

Source: Supply Chain Digital

Date :10/14/2008 10:18:18 AM

Atlas Air Worldwide Holdings Inc said its full year earnings would be tempered by market conditions in its Scheduled Service and Commercial Charter businesses.

The company said that it expects pretax earnings from operations in 2008 to exceed US$65.0 million, compared with previous guidance of approximately US$85.0 million.

“We have updated our outlook for 2008 based on market conditions affecting our Scheduled Service and Commercial Charter business segments, where lower utilization of our 747-200 aircraft and weaker yields are having a negative impact,” said William J Flynn, President and Chief Executive.

Not included in the guidance is a pretax gain of approximately US$153.3 million, expected to be recognized in the fourth quarter of 2008 upon commencement of a long-term blocked space agreement with DHL Express on October 27.

“With the first full year of earnings benefitting from our express network ACMI flying for DHL in 2009, and with our focus on operating efficiency and earnings growth, our business fundamentals remain solid,” Flynn added.