Atlas Air Worldwide Holdings (AAWW) said the deconsolidation of Polar Air Cargo Worldwide from its results last October had enhanced core leasing earnings and transformed margins on its freighter fleet.
The leasing giant saw net profit reach a record US$23.4m in the first quarter of 2009 on revenues of $244.5m, compared to a net loss of $5.3m a year earlier on revenues of $373m. The deconsolidation of Polar for reporting purposes also explained the sharp drop in revenue.
William Flynn, president and CEO of AAWW, said core ACMI (aircraft, crew, maintenance & insurance) contributions had grown significantly since an additional eight 747-400Fs had been dedicated to express services in the wake of the block-space agreement between subsidiary Polar and DHL Express, which came into force last October.
"It has transformed expected margins on 747-400F aircraft assets that had been deployed in our former scheduled service segment, where AAWW was responsible for fuel and yield risk, to levels consistent with our core ACMI business," he said.
While global air freight traffic remained weak, there were signs that demand had bottomed out, according to Flynn. "Capacity reductions, particularly the retirement of older-generation freighter aircraft, are accelerating, which will mitigate the impact of reduced demand," he said. "Given these reductions, and the delays in the deliveries of newer-generation freighters, any improvement in demand could have an early and meaningful impact on AAWW."
The first quarter results were achieved despite a 14.3% year-on-year reduction in military (AMC) charter revenue. Atlas said demand for charters was now increasing after the lows of the final quarter of 2008.
