PURCHASE, N.Y., Monday, December 3, 2018 — Atlas Air Worldwide (Nasdaq: AAWW) announced today that Debora Coffey has been appointed Vice President and Chief Communications Officer.
Ms. Coffey will lead an integrated communications function to advance Atlas Air Worldwide’s brand reputation among its key stakeholders. In this newly created role, Ms. Coffey will be responsible for corporate communications (both internal and external), including media relations, employee engagement, digital/social media, and corporate social responsibility, as well as drive the overall alignment of Atlas Air Worldwide’s messaging globally. Ms. Coffey will be based in Purchase, New York and report to William J. Flynn, President and Chief Executive Officer.
“Debora is joining Atlas Air Worldwide at an exciting time, as we continue to grow and evolve our business globally,” said Mr. Flynn. “Her brand-building expertise will be critical in driving our corporate narrative and reputation as a preeminent provider of outsourced aircraft and aviation operating services. With her broad-based experience leading communications strategies that connect with key audiences, she will be an excellent addition to our team.”
Ms. Coffey joins Atlas Air Worldwide with over 20 years of experience leading global corporate and brand communications for external and internal audiences. Ms. Coffey spent the majority of her career at Avon Products, Inc. leading global corporate communications, with responsibility for brand reputation initiatives, including media relations, corporate social responsibility, employee engagement, social media, corporate philanthropy, and industry relations. Most recently, she was head of communications for New Avon LLC, based in North America. Prior to her Avon experience, she worked on the agency side, delivering marketing communications and public relations services to blue chip clients, including Procter & Gamble, Bath & Body Works, Beiersdorf, SmithKline Beecham Consumer Health, Rosewood Hotels and Swarovski.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
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PURCHASE,N.Y., Friday, November 30, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) congratulates and thanks the United States government for reaching an open skies aviation agreement with the United Kingdom, to become effective when the air services agreement between the United States and Member States of the European Union ceases to apply to the United Kingdom following Brexit.
The U.S.-UK agreement will ensure post-Brexit continuation of the market-driven aviation environment needed to facilitate continuing growth of U.S. jobs and the U.S. economy.
“We are extremely gratified that the United States continues to pursue its well-tested open skies aviation policy,” said President and Chief Executive Officer William J. Flynn. “When it takes effect, the U.S.-UK air services agreement will improve the global scheduling options for our airline subsidiaries by allowing them to exercise seventh-freedom cargo rights to and from the United Kingdom.”
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
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Qualified Ameriflight Pilots Guaranteed Interviews with Atlas and Southern
PURCHASE, N.Y., Tuesday, November 13, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced that its Atlas Air, Inc. and Southern Air, Inc. units and Ameriflight have entered into a pilot pathway agreement that guarantees qualified Ameriflight pilots an interview with Atlas Air and Southern Air, creating an opportunity for career progression.
The world’s largest operator of modern Boeing 747 all-cargo aircraft, Atlas Air Worldwide, is widely recognized as a leading global provider of outsourced aircraft and aviation operating services. With a focus on express, e-commerce, and fast-growing markets, the company is in an era of significant growth and development, with opportunities to expand its cargo and passenger operations with existing customers and new ones.
“We are pleased to form this special relationship with Ameriflight,” said Atlas Air President and Chief Operating Officer John W. Dietrich.
“Our business is growing, and our airlines are a great place to build a career. Innovative partnerships like this one help us ensure a solid pipeline of qualified candidates dedicated to a career in aviation, which is at the center of today’s modern global economy.”
“Our partnership with Atlas Air and Southern Air provides an exceptional career advancement opportunity for our pilots,” said Ameriflight Chief Executive Officer Paul Chase. “We have made a commitment to our team and the industry that Ameriflight will be the nation’s top place for pilots to become professional, major-airline ready, aviators. This is why we choose to align ourselves with the world’s best companies, like Atlas Air Worldwide. ”
The Pilot Pathway Program between Ameriflight, Atlas Air and Southern Air is open to qualified Ameriflight pilots. Participants will gain requisite experience fulfilling a number of benchmarks while at Ameriflight, including Atlas’ ATP/CTP program, professional/career development programs and more. Successful completion of the program will afford for these Ameriflight pilots a guaranteed interview with Atlas Air and Southern Air subject to hiring needs and meeting all program and hiring requirements.
Under the program, a Pathway Pilot reaching the outlined benchmarks will be recommended for Atlas’ ATP/CTP program. Successful completion of the program and acceptance of employment will result in the pilot being placed in an aircraft class, such as the 747 with Atlas Air for higher-time pilots or the 737 with Southern Air for lower-time, new-hire pilots.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
About Ameriflight:
Ameriflight was founded in 1968 and has grown from a small air charter and cargo service carrier to an international operator and the nation’s largest 135 cargo airline. Ameriflight is headquartered in Dallas, TX and has more than 500 employees including over 150 pilots and over 100 aircraft. Ameriflight provides feeder services for overnight express carriers such as UPS, FedEx, and DHL.
The company can be found on the web at ameriflight.com and on Facebook, Instagram, and Twitter at @Ameriflight.
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Aircraft Delivered Ahead of Peak Holiday Season
PURCHASE, N.Y., Monday, November 12, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced the delivery of its twentieth B767-300 converted freighter to Amazon (Nasdaq: AMZN). The aircraft, which bears tail number N1487A, entered into Amazon’s domestic air network ahead of the peak holiday season to serve its growing customer demand.
“Our delivery of 20 aircraft to Amazon over the last 28 months is a significant achievement,” said William J. Flynn, President and Chief Executive Officer. “It is an accomplishment that we are very proud of and for which our employees worked hard. We appreciate Amazon’s confidence in our capabilities, global scale and operating excellence.”
Mr. Flynn continued, “E-commerce is the fastest growing air cargo segment, and we are excited to continue our partnership with Amazon as it delivers innovative service to its customers.”
Under long-term commercial agreements announced in 2016, Atlas Air Worldwide’s airline subsidiary, Atlas Air, Inc., operates the aircraft for Amazon on a CMI (crew, maintenance and insurance) basis and its leasing unit, Titan Aviation, dry leases the aircraft to Amazon.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
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PURCHASE, N.Y, Thursday, November 1, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced strong third-quarter earnings growth and raised its outlook for full-year 2018, driven by ongoing market strength, customer demand and business development.
“We continue to leverage the scale and scope of our enterprise and our leadership in global aviation outsourcing,” said President and Chief Executive Officer William J. Flynn.
“We are in a good place to deliver quality results today and in the future. We have the aircraft and provide the services that customers want. We are focused on the right markets. And we are executing on strategic initiatives to grow and diversify our fleet, expand our customer base and enhance our business mix.
“Secular trends are driving opportunities and growth in airfreight. And our focus is on express, e-commerce and fast-growing regions where efficient, time-definite, freighter networks are essential to meet the growing demands of businesses and consumers.
“Looking to the full year, we continue to expect our revenue to exceed $2.6 billion. We project adjusted EBITDA to increase to more than $525 million. And we anticipate our full-year adjusted net income to grow near or above 50% compared with 2017.”
Mr. Flynn continued: “Our full-year outlook reflects our expectations for another great fourth quarter. We see solid peak-season yields and volumes, including the additional seasonal flying we do for express and e-commerce operators. And we anticipate record fourth-quarter block hours, revenue, adjusted EBITDA and adjusted net income.
“The fourth quarter will also benefit from our second 747-400 freighter for Asiana Cargo, which began flying in September, and our first 747-400 freighter for SF Express, China’s leading express operator, which began service in October. In addition, we expect to add two more 767-300 converted freighters for Amazon before Thanksgiving, which will bring us to 20 aircraft in line with the schedule we announced in May 2016.”
He concluded: “While tariffs and trade are important topics, neither we nor our customers, with whom we are in close contact, have seen a material impact on airfreight demand. Airfreight tonnage continues to grow from record levels, and airfreight demand is growing in line with its longer-term rate of about 4% per year, with express and e-commerce growing much more than that.”
Third-Quarter Results
Volumes in the third quarter of 2018 increased 14% to a record 73,672 block hours, with revenue growing 23% to $656.6 million.
Reported income from continuing operations, net of taxes, totaled $71.1 million, or $0.84 per diluted share, during the period compared with a reported loss of $24.2 million, or $0.96 per diluted share, in the third quarter of 2017. Reported results in the third quarter of 2018 included an unrealized gain on outstanding warrants of $46.1 million compared with an unrealized loss on outstanding warrants of $44.8 million in the year-ago period.
On an adjusted basis, income from continuing operations, net of taxes, in the third quarter of 2018 increased $14.1 million to $43.8 million, or $1.54 per diluted share, from $29.7 million, or $1.08 per diluted share, in the year-ago quarter. Adjusted EBITDA increased $25.3 million over the year-ago period to $124.8 million.
ACMI segment contribution in the third quarter of 2018 increased slightly compared with the prior-year period, primarily due to a significant increase in block-hour volumes partially offset by the impact of unscheduled maintenance; higher crew costs, including enhanced wages and work rules resulting from an interim labor agreement with our Southern Air pilots; and the redeployment of 747-400 VIP-configured passenger aircraft to Charter after acquisition from a former CMI customer. Block hours grew 13% during the period, reflecting increased 767 flying for Amazon and the start-up of 747-400 flying for several new customers. Revenue per block hour during the quarter was relatively in line with the third quarter of 2017, primarily due to a mix effect reflecting an increase in widebody 747-400F ACMI flying that was offset by an increase in smaller-gauge 767 CMI flying.
Higher Charter segment contribution during the period was primarily driven by an increase in military and commercial cargo demand and higher yields excluding fuel, partially offset by an increase in heavy maintenance. Higher average block-hour rates during the quarter primarily reflected higher fuel prices and higher yields excluding fuel.
In Dry Leasing, higher segment contribution primarily reflected the placement of additional 767-300 converted freighter aircraft throughout the second half of 2017 and first three quarters of 2018, as well as the placement of one 777-200 freighter in February 2018 and a second one in July 2018.
Higher unallocated income and expenses, net during the quarter primarily reflected a ratification bonus related to an interim agreement to enhance the terms and conditions of employment of our Southern Air, Inc. pilots; fleet growth initiatives; amortization of a customer incentive asset; and an increase in unallocated interest expense.
Reported earnings in the third quarter of 2018 also included an effective income tax rate of 0.0%, due mainly to nondeductible or nontaxable changes in the value of outstanding warrants as well as a deferred income tax benefit of approximately $8.7 million related to the renewal of our Titan dry-leasing subsidiary’s participation in an aircraft-leasing incentive program in Singapore. On an adjusted basis, our results reflected an effective income tax rate of 0.0%.
Nine-Month Results
Reported income from continuing operations, net of taxes, for the nine months ended September 30, 2018, totaled $59.6 million, or $2.27 per diluted share, which included an unrealized loss on financial instruments of $11.7 million related to outstanding warrants and a special charge of $9.4 million related to engines held for sale. Results for the first nine months compared with income from continuing operations of $14.9 million, or $0.58 per diluted share, which included an unrealized loss on financial instruments of $36.2 million, for the nine months ended September 30, 2017.
On an adjusted basis, income from continuing operations, net of taxes, in the first nine months of 2018 totaled $117.3 million, or $4.17 per diluted share, compared with $67.1 million, or $2.48 per diluted share, in the first nine months of 2017. Adjusted EBITDA in the first nine months of 2018 increased $78.2 million to $344.1 million.
Cash and Short-Term Investments
At September 30, 2018, our cash and cash equivalents, short-term investments and restricted cash totaled $244.7 million, compared with $305.5 million at December 31, 2017.
The change in position resulted from cash used for investing activities, partially offset by cash provided by operating and financing activities.
Net cash used for investing activities during the first nine months of 2018 primarily related to capital expenditures and payments for flight equipment and modifications, including the acquisition of 777-200 aircraft, 767-300 passenger aircraft and related freighter-conversion costs, spare engines and GEnx engine performance upgrade kits.
Net cash provided by financing activities during the period primarily reflected proceeds from our financings of 777-200 and 767-300 aircraft, partially offset by payments on debt obligations.
Enhanced 2018 Outlook
Consistent with our strong year-to-date performance and our fourth-quarter expectations, we expect our full-year 2018 revenue to exceed $2.6 billion; our adjusted EBITDA to increase to more than $525 million; and our adjusted net income to increase near or above 50% compared with 2017 adjusted net income of $133.7 million.
We see volumes for the year rising approximately 17% to around 297,000 block hours, with about 75% of the hours in ACMI and the balance in Charter.
Aircraft maintenance expense in 2018 is expected to total approximately $335 million, mainly reflecting an increase in daily line maintenance due to the growth in block hours. Depreciation and amortization is expected to total approximately $215 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are expected to total approximately $105 to $115 million, mainly for parts and components for our fleet.
We also expect our full-year 2018 adjusted effective income tax rate to be approximately 15%.
We provide guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.*
Conference Call
Management will host a conference call to discuss Atlas Air Worldwide’s third-quarter 2018 financial and operating results at 11:00 a.m. Eastern Time on Thursday, November 1, 2018.
Interested parties are invited to listen to the call live over the Internet at www.atlasair.com (click on “Investor Information,” click on “Presentations” and on the link to the third-quarter call) or at the following Web address:
https://edge.media-server.com/m6/p/9hco3uij
For those unable to listen to the live call, a replay will be archived on the above websites following the call. A replay will also be available through November 8 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 8787259#.
About Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with U.S. GAAP, we present certain non-GAAP financial measures to assist in the evaluation of our business performance. These non-GAAP measures include Adjusted EBITDA; Adjusted income from continuing operations, net of taxes; Adjusted Diluted EPS from continuing operations, net of taxes; Adjusted effective tax rate; and Free Cash Flow, which exclude certain noncash income and expenses, and items impacting year-over-year comparisons of our results. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for Income (loss) from continuing operations, net of taxes; Diluted EPS from continuing operations, net of taxes; Effective tax rate; and Net Cash Provided by Operating Activities, which are the most directly comparable measures of performance prepared in accordance with U.S. GAAP.
Our management uses these non-GAAP financial measures in assessing the performance of the company’s ongoing operations and in planning and forecasting future periods. We believe that these adjusted measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. For example:
• Adjusted EBITDA; Adjusted income from continuing operations, net of taxes; and Adjusted Diluted EPS from continuing operations, net of taxes, provide a more comparable basis to analyze operating results and earnings and are measures commonly used by shareholders to measure our performance. In addition, management’s incentive compensation is determined, in part, by using Adjusted EBITDA and Adjusted income from continuing operations, net of taxes.
• Adjusted effective tax rate provides improved insight into the tax effects of our ongoing business operations.
• Free Cash Flow helps investors assess our ability, over the long term, to create value for our shareholders as it represents cash available to execute our capital allocation strategy.
*We provide guidance on an adjusted basis and are unable to provide forwarding-looking guidance on a U.S. GAAP basis or a reconciliation to the most directly comparable U.S. GAAP measures because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items. The principal item is the impact on our results of our outstanding warrants, which are highly dependent on the change in our stock price during the period reported. These items are uncertain, depend on various factors, and could have a material impact on our U.S. GAAP results.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Atlas Air Worldwide’s current views with respect to certain current and future events and financial performance. Those statements are based on management’s beliefs, plans, expectations and assumptions, and on information currently available to management. Generally, the words “will,” “may,” “should,” “expect,” “anticipate,” “intend,” “plan,” “continue,” “believe,” “seek,” “project,” “estimate,” and similar expressions used in this release that do not relate to historical facts are intended to identify forward-looking statements.
Such forward-looking statements speak only as of the date of this release. They are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Atlas Air Worldwide and its subsidiaries (collectively, the “companies”) that may cause the actual results of the companies to be materially different from any future results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to effectively operate the network service contemplated by our agreements with Amazon, including the cost and timing of securing any aircraft necessary to fulfill our agreements; the risk that the anticipated benefits of our agreements with Amazon will not be realized when expected, or at all; the possibility that Amazon may terminate its agreements with the companies; the ability of the companies to operate pursuant to the terms of their financing facilities; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to their operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives, pilots and associates; the ability of the companies to attract and retain customers; the continued availability of our wide-body aircraft; demand for cargo services in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; failure or disruption of our information technology systems; labor costs and relations, work stoppages and service slowdowns; the outcome of pending negotiations with our pilots’ union; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; weather conditions; government legislation and regulation; changes to our provisional estimates of the impact of the U.S. Tax Cuts and Jobs Act of 2017; consumer perceptions of the companies’ products and services; anticipated and future litigation; and other risks and uncertainties set forth from time to time in Atlas Air Worldwide’s reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under the heading “Risk Factors” in the most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q filed by Atlas Air Worldwide with the Securities and Exchange Commission. Other factors and assumptions not identified above may also affect the forward-looking statements, and these other factors and assumptions may also cause actual results to differ materially from those discussed.
Except as stated in this release, Atlas Air Worldwide is not providing guidance or estimates regarding its anticipated business and financial performance for 2018 or thereafter.
Atlas Air Worldwide assumes no obligation to update such statements contained in this release to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law and expressly disclaims any obligation to revise or update publically any forward-looking statement to reflect future events or circumstances.
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PURCHASE, N.Y., Thursday, September 20, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced that its Atlas Air, Inc. unit has entered into an aircraft transportation services agreement to operate a Boeing 747-400 Freighter for SF Express, China’s leading express service provider, to enhance operating capability between China and the United States.
Atlas Air will operate the aircraft on behalf of SF Express on key global routes across the fast-growing transpacific market, connecting China with the United States. The aircraft is an incremental unit in Atlas Air’s fleet in response to customer demand and will enter into service in October 2018.
“We are delighted to welcome SF Express as a strategic customer and to continue expanding our position in the express industry and the Asia-Pacific market,” said William J. Flynn, President and Chief Executive Officer, Atlas Air Worldwide. “SF Express plays a very important role in the growing express and e-commerce industries, and we look forward to providing SF Express and its customers with unmatched service and a platform for future global expansion.”
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
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Placement Reflects Demand-Driven Expansion of Atlas Air Fleet
PURCHASE, N.Y., Wednesday, September 5, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced that its Atlas Air, Inc. unit has entered into an agreement to add a second Boeing 747-400 Freighter for Asiana Cargo.
The aircraft will be operated by Atlas Air and be flown on key global routes across the fast-growing transpacific market, connecting South Korea with several destinations in the United States. The aircraft is an incremental unit in Atlas Air’s fleet in response to customer demand and will enter into service this month.
“We are delighted to expand our strategic partnership with Asiana Cargo,” said William J. Flynn, President and Chief Executive Officer, Atlas Air Worldwide. “Asiana takes pride in providing reliable, high-quality service, and we are very pleased to be chosen to manage an important part of its international network. We look forward to providing Asiana and its customers with unmatched service and a platform for future expansion.”
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
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PURCHASE, N.Y., Thursday, August 9, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today said that pilots employed by its Southern Air, Inc. subsidiary have ratified an agreement between Southern Air and Local 1224 of the International Brotherhood of Teamsters (IBT) for interim enhancements to the collective bargaining agreement between the parties.
The interim agreement increases pay rates for Southern Air pilots to the same wage scales as provided to pilots of Atlas Air, Inc. It also provides for a ratification bonus and other terms and conditions that are comparable to those provided to their colleagues at Atlas Air.
“We are pleased to enter into this agreement to benefit our Southern Air pilots, and we appreciate the hard work and commitment of the IBT during the entire process,” said Atlas Air President and Chief Operating Officer John W. Dietrich. “We look forward to continuing our collaborative and productive discussions with the IBT leadership as we proceed toward the merger of Atlas Air and Southern Air and the completion of a joint collective bargaining agreement covering all of our pilots.”
The expected financial and operating impacts of the tentative agreement in 2018 were incorporated in Atlas Air Worldwide’s earnings growth framework announced on August 2, 2018. As indicated, the company anticipates that its full-year 2018 adjusted net income will grow by 45% to 50% compared with 2017.
The company provides guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.
Mr. Dietrich added: “We value the professionalism and contributions of our Atlas Air and Southern Air crewmembers and the excellent service they provide every day. We also remain committed to completing the bargaining process for a joint contract in a timely manner and in the best interests of all parties.”
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international applications.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Atlas Air Worldwide’s current views with respect to certain current and future events and financial performance. Those statements are based on management’s beliefs, plans, expectations and assumptions, and on information currently available to management. Generally, the words “will,” “may,” “should,” “expect,” “anticipate,” “intend,” “plan,” “continue,” “believe,” “seek,” “project,” “estimate,” and similar expressions used in this release that do not relate to historical facts are intended to identify forward-looking statements.
Such forward-looking statements speak only as of the date of this release. They are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Atlas Air Worldwide and its subsidiaries (collectively, the “companies”) that may cause the actual results of the companies to be materially different from any future results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to effectively operate the network service contemplated by our agreements with Amazon, including the cost and timing of securing any aircraft necessary to fulfill our agreements; the risk that the anticipated benefits of our agreements with Amazon will not be realized when expected, or at all; the possibility that Amazon may terminate its agreements with the companies; the ability of the companies to operate pursuant to the terms of their financing facilities; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to their operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives, pilots and associates; the ability of the companies to attract and retain customers; the continued availability of our wide-body aircraft; demand for cargo services in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; failure or disruption of our information technology systems; labor costs and relations, work stoppages and service slowdowns; the outcome of pending negotiations with our pilots’ union; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; weather conditions; government legislation and regulation; changes to our provisional estimates of the impact of the U.S. Tax Cuts and Jobs Act of 2017; consumer perceptions of the companies’ products and services; anticipated and future litigation; and other risks and uncertainties set forth from time to time in Atlas Air Worldwide’s reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under the heading “Risk Factors” in the most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q filed by Atlas Air Worldwide with the Securities and Exchange Commission. Other factors and assumptions not identified above may also affect the forward-looking statements, and these other factors and assumptions may also cause actual results to differ materially from those discussed.
Except as stated in this release, Atlas Air Worldwide is not providing guidance or estimates regarding its anticipated business and financial performance for 2018 or thereafter.
Atlas Air Worldwide assumes no obligation to update such statements contained in this release to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law and expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.
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PURCHASE, N.Y., Thursday, August 2, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced strong second-quarter 2018 business growth and raised its outlook for full-year 2018, driven by market strength and increased customer demand.
“Our volumes and revenue grew to new records in the second quarter, and while reported results were impacted by warrant accounting, our adjusted income and adjusted EBITDA were sharply higher,” said President and Chief Executive Officer William J. Flynn.
“We expect to continue to build on our strong performance in the second half of 2018. Airfreight demand is solid and the global economy is growing. As a result of our strategic initiatives to grow and diversify our fleet, expand our customer base and enhance our business mix, we are meeting the growing needs of our customers, driving our results and extending our leadership in global aviation outsourcing.
“For the full year, we now expect our revenue to exceed $2.6 billion. We project adjusted EBITDA to increase to more than $520 million. And we anticipate our full-year adjusted net income will grow by 45% to 50% compared with 2017, up from our prior outlook of 35% to 40% growth.”
Second-Quarter Results
Volumes in the second quarter of 2018 increased 19% to a record 72,660 block hours, with revenue growing 29% to a record $666.1 million.
A reported loss from continuing operations, net of taxes, of $21.1 million, or $0.83 per diluted share, during the period compared with reported income of $39.0 million, or $0.92 per diluted share, in the second quarter of 2017. Reported results in the second quarter of 2018 included an unrealized loss on outstanding warrants of $50.0 million compared with an unrealized gain on outstanding warrants of $13.8 million in the year-ago period, as well as a special charge of $9.4 million related to engines held for sale.
On an adjusted basis, income from continuing operations, net of taxes, in the second quarter of 2018 increased $20.6 million to $49.7 million, or $1.75 per diluted share, from $29.1 million, or $1.09 per diluted share, in the year-ago quarter. Adjusted EBITDA increased $23.1 million over the year-ago period to $125.5 million.
Reported and adjusted results for the second quarter included an after-tax benefit of $6.8 million related to a refund of aircraft rent paid in previous years. Reported and adjusted results for the period also included an after-tax benefit of $3.1 million mainly related to the timing of non-heavy maintenance expense initially expected to occur in the second quarter that is now anticipated to take place in the third quarter.
ACMI segment contribution in the second quarter of 2018 was relatively unchanged from the prior-year period, as a significant increase in block-hour volumes and a higher average rate per block hour were offset by higher heavy maintenance expense and amortization of deferred maintenance costs. Block hours grew 19% during the period, reflecting increased 767 flying for Amazon, the start-up of 747-400 flying for several new customers, and the redeployment of 747-8F aircraft from the Charter segment to ACMI. The increase in the average rate during the quarter primarily reflected the impact of increased 747-8F and 747-400F flying for new customers.
Higher Charter segment contribution during the period was primarily driven by increases in military cargo and passenger demand, an increase in commercial cargo volumes, and higher aircraft utilization, partially offset by the redeployment of 747-8 aircraft to the ACMI segment. Higher average rates during the quarter primarily reflected higher fuel prices and the impact of Charter capacity purchased from ACMI customers that had no associated Charter block hours.
In Dry Leasing, higher segment contribution primarily reflected the placement of additional 767-300 converted freighter aircraft throughout the second half of 2017 and first half of 2018, as well as the placement of a 777-200 freighter in early 2018.
Higher unallocated income and expenses, net during the quarter primarily reflected an increase in unallocated interest expense, fleet growth initiatives, and amortization of a customer incentive asset.
Reported earnings in the second quarter of 2018 also included an effective income tax rate of 159.6%, due mainly to nondeductible changes in the value of outstanding warrants. On an adjusted basis, our results reflected an effective income tax rate of 16.2%.
Cash and Short-Term Investments
At June 30, 2018, our cash and cash equivalents, short-term investments and restricted cash totaled $245.4 million, compared with $305.5 million at December 31, 2017.
The change in position resulted from cash used for investing activities, partially offset by cash provided by operating and financing activities.
Net cash used for investing activities during the first half of 2018 primarily related to capital expenditures and payments for flight equipment and modifications, including the acquisition of 777-200 aircraft, 767-300 aircraft to be converted to freighter configuration, spare engines and GEnx engine performance upgrade kits.
Net cash provided by financing activities during the period primarily reflected proceeds from our financings of 777-200 and 767-300 aircraft, partially offset by payments on debt obligations.
Half-Year Results
Reported results for the six months ended June 30, 2018 reflected a loss from continuing operations, net of taxes, of $11.5 million, or $0.45 per diluted share, primarily due to an unrealized loss on financial instruments of $57.8 million related to outstanding warrants and a special charge of $9.4 million related to engines held for sale. Results for the first half compared with income from continuing operations of $39.1 million, or $1.13 per diluted share, which included an unrealized gain on financial instruments of $8.6 million, for the six months ended June 30, 2017.
On an adjusted basis, first-half 2018 income from continuing operations, net of taxes, totaled $73.5 million, or $2.62 per diluted share, compared with $37.4 million, or $1.39 per diluted share, in the first half of 2017.
Reported and adjusted results for the first half of 2018 also included $9.8 million of after-tax benefits related to the refund of aircraft rent and $3.1 million related to the timing of non-heavy maintenance expense discussed earlier.
Raising 2018 Outlook
We are raising our outlook for 2018 to reflect our strong first-half results and our continued expectation of significant volume, revenue, and earnings growth.
Globally, economic activity is expanding. The airfreight market is solid, and airfreight tonnage continues to grow from record levels.
As a result, we see volumes rising approximately 19% to around 300,000 block hours in 2018, with about 75% of the hours in ACMI and the balance in Charter.
For the full year, we expect our revenue to exceed $2.6 billion, our adjusted EBITDA to increase to more than $520 million, and our adjusted net income to grow by 45% to 50% compared with 2017.
Aircraft maintenance expense in 2018 is expected to total approximately $330 million, mainly reflecting an increase in daily line maintenance due to the anticipated growth in block hours. Depreciation and amortization is expected to total approximately $220 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are expected to total approximately $105 to $115 million, mainly for parts and components for our fleet.
We also expect our full-year 2018 adjusted effective income tax rate to be approximately 15%.
For the third quarter of 2018, we expect adjusted EBITDA to exceed $120 million, and adjusted net income to increase by an upper-30% to lower-40% level compared with third-quarter 2017 adjusted net income of $29.7 million.
During the third quarter, we expect our Titan dry-leasing subsidiary to renew its participation in an aircraft-leasing incentive program in Singapore. As a result, we expect to record a deferred income tax benefit of approximately $8.2 million in the third quarter and to benefit from a reduced income tax rate going forward.
Also in the third quarter, we anticipate a ratification bonus related to an interim agreement to enhance the terms and conditions of employment of our Southern Air, Inc. pilots. The agreement is subject to ratification by the Southern Air pilots in a process that we expect to be completed by mid-August.
We provide guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.
Conference Call
Management will host a conference call to discuss Atlas Air Worldwide’s second-quarter 2018 financial and operating results at 11:00 a.m. Eastern Time on Thursday, August 2, 2018.
Interested parties are invited to listen to the call live over the Internet at www.atlasair.com (click on “Investor Information,” click on “Presentations” and on the link to the second-quarter call) or at the following Web address:
https://edge.media-server.com/m6/p/emxsgrj5
For those unable to listen to the live call, a replay will be archived on the above websites following the call. A replay will also be available through August 9 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 2709038#.
About Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with U.S. GAAP, we present certain non-GAAP financial measures to assist in the evaluation of our business performance. These non-GAAP measures include Adjusted EBITDA; Adjusted income from continuing operations, net of taxes; Adjusted Diluted EPS from continuing operations, net of taxes; Adjusted effective tax rate; and Free Cash Flow, which exclude certain noncash income and expenses, and items impacting year-over-year comparisons of our results. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for Income (loss) from continuing operations, net of taxes; Diluted EPS from continuing operations, net of taxes; Effective tax rate; and Net Cash Provided by Operating Activities, which are the most directly comparable measures of performance prepared in accordance with U.S. GAAP.
Our management uses these non-GAAP financial measures in assessing the performance of the company’s ongoing operations and in planning and forecasting future periods. We believe that these adjusted measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. For example:
• Adjusted EBITDA; Adjusted income from continuing operations, net of taxes; and Adjusted Diluted EPS from continuing operations, net of taxes, provide a more comparable basis to analyze operating results and earnings and are measures commonly used by shareholders to measure our performance. In addition, management’s incentive compensation is determined, in part, by using Adjusted EBITDA and Adjusted income from continuing operations, net of taxes.
• Adjusted effective tax rate provides improved insight into the tax effects of our ongoing business operations.
• Free Cash Flow helps investors assess our ability, over the long term, to create value for our shareholders as it represents cash available to execute our capital allocation strategy.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Atlas Air Worldwide’s current views with respect to certain current and future events and financial performance. Those statements are based on management’s beliefs, plans, expectations and assumptions, and on information currently available to management. Generally, the words “will,” “may,” “should,” “expect,” “anticipate,” “intend,” “plan,” “continue,” “believe,” “seek,” “project,” “estimate,” and similar expressions used in this release that do not relate to historical facts are intended to identify forward-looking statements.
Such forward-looking statements speak only as of the date of this release. They are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Atlas Air Worldwide and its subsidiaries (collectively, the “companies”) that may cause the actual results of the companies to be materially different from any future results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to effectively operate the network service contemplated by our agreements with Amazon, including the cost and timing of securing any aircraft necessary to fulfill our agreements; the risk that the anticipated benefits of our agreements with Amazon will not be realized when expected, or at all; the possibility that Amazon may terminate its agreements with the companies; the ability of the companies to operate pursuant to the terms of their financing facilities; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to their operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives, pilots and associates; the ability of the companies to attract and retain customers; the continued availability of our wide-body aircraft; demand for cargo services in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; failure or disruption of our information technology systems; labor costs and relations, work stoppages and service slowdowns; the outcome of pending negotiations with our pilots’ union; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; weather conditions; government legislation and regulation; changes to our provisional estimates of the impact of the U.S. Tax Cuts and Jobs Act of 2017; consumer perceptions of the companies’ products and services; anticipated and future litigation; and other risks and uncertainties set forth from time to time in Atlas Air Worldwide’s reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under the heading “Risk Factors” in the most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q filed by Atlas Air Worldwide with the Securities and Exchange Commission. Other factors and assumptions not identified above may also affect the forward-looking statements, and these other factors and assumptions may also cause actual results to differ materially from those discussed.
Except as stated in this release, Atlas Air Worldwide is not providing guidance or estimates regarding its anticipated business and financial performance for 2018 or thereafter.
Atlas Air Worldwide assumes no obligation to update such statements contained in this release to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law and expressly disclaims any obligation to revise or update publically any forward-looking statement to reflect future events or circumstances.
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Purchase, NY, Tuesday, July 17, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced an agreement between its Southern Air, Inc. subsidiary and Local 1224 of the International Brotherhood of Teamsters (IBT) for interim enhancements to the collective bargaining agreement covering pilots employed by Southern Air.
The interim agreement increases pay rates for Southern Air pilots to the same wage scales as provided to pilots of Atlas Air, Inc. It also provides for a ratification bonus and other terms and conditions that are comparable to those provided to their colleagues at Atlas Air.
The agreement is subject to ratification by the Southern Air pilots in a process that will take place during the next several weeks.
“This agreement to benefit our Southern Air pilots is the result of collaborative and productive discussions with the IBT leadership as we continue on our path toward the merger of Atlas Air and Southern Air and completing a joint collective bargaining agreement,” said Atlas Air President and Chief Operating Officer John W. Dietrich. “We are grateful for the IBT’s hard work and commitment during the entire process.”
The expected financial and operating impacts of the tentative agreement in 2018 were incorporated in the company’s earnings growth framework announced on June 25, 2018. As indicated, the company anticipates that its full-year 2018 adjusted net income will grow by 35% to 40% compared with 2017.
The company provides guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.
Mr. Dietrich added: “We appreciate the professionalism and contributions of our Atlas Air and Southern Air crewmembers and the excellent service they provide every day. And we remain committed to completing the bargaining process for a joint contract covering all of our pilots in a timely manner and in the best interests of all parties.”
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international applications.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Atlas Air Worldwide’s current views with respect to certain current and future events and financial performance. Those statements are based on management’s beliefs, plans, expectations and assumptions, and on information currently available to management. Generally, the words “will,” “may,” “should,” “expect,” “anticipate,” “intend,” “plan,” “continue,” “believe,” “seek,” “project,” “estimate,” and similar expressions used in this release that do not relate to historical facts are intended to identify forward-looking statements.
Such forward-looking statements speak only as of the date of this release. They are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Atlas Air Worldwide and its subsidiaries (collectively, the “companies”) that may cause the actual results of the companies to be materially different from any future results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to effectively operate the network service contemplated by our agreements with Amazon, including the cost and timing of securing any aircraft necessary to fulfill our agreements; the risk that the anticipated benefits of our agreements with Amazon will not be realized when expected, or at all; the possibility that Amazon may terminate its agreements with the companies; the ability of the companies to operate pursuant to the terms of their financing facilities; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to their operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives, pilots and associates; the ability of the companies to attract and retain customers; the continued availability of our wide-body aircraft; demand for cargo services in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; labor costs and relations, work stoppages and service slowdowns; the outcome of pending negotiations with our pilots’ union; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; weather conditions; government legislation and regulation; changes to our provisional estimates of the impact of the U.S. Tax Cuts and Jobs Act of 2017; consumer perceptions of the companies’ products and services; anticipated and future litigation; and other risks and uncertainties set forth from time to time in Atlas Air Worldwide’s reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under the heading “Risk Factors” in the most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q filed by Atlas Air Worldwide with the Securities and Exchange Commission. Other factors and assumptions not identified above may also affect the forward-looking statements, and these other factors and assumptions may also cause actual results to differ materially from those discussed.
Except as stated in this release, Atlas Air Worldwide is not providing guidance or estimates regarding its anticipated business and financial performance for 2018 or thereafter.
Atlas Air Worldwide assumes no obligation to update such statements contained in this release to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law and expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.
New Partnership with Premier Regional Carrier Assures Interviews with Atlas in as Little as One to Two Years
PURCHASE, N.Y., Thursday, July 12, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today said that its Atlas Air, Inc. unit and GoJet Airlines have entered an agreement guaranteeing GoJet pilots an interview with Atlas after as little as one to two years of service. First Officers with military flying experience will be eligible to interview with Atlas after just one year of service at GoJet, while all other pilots will be eligible to interview after a minimum of two years of service.
The world’s largest operator of modern Boeing 747 all-cargo aircraft, Atlas Air Worldwide is widely recognized as a leading global provider of outsourced aircraft and aviation operating services. With a focus on express, e-commerce and fast-growing markets, the company is in an era of significant business growth and development, with opportunities to expand its cargo and passenger operations with existing customers and with new ones.
“We are delighted to begin this special relationship with GoJet,” said Atlas Air President and Chief Operating Officer John W. Dietrich.
“Aviation is at the center of today’s modern global economy. And its continued ability to provide access to markets, serve as a catalyst for international trade, and propel economic and social development will benefit greatly from innovative partnerships like this one, which will help ensure a solid pipeline of attractive candidates dedicated to a career in aviation.”
“Our new partnership with Atlas provides an excellent career progression opportunity for our pilots,” said GoJet Chief Operating Officer Terry Basham. “Given Atlas’ healthy economic outlook, our pilots will find it an ideal place to build a long-term career.”
“This agreement opens the door for GoJet pilots to potentially fly the Boeing 747 or 767, among the most storied aircraft in aviation history,” added GoJet Director of Flight Operations Randy Bratcher. “The opportunity to join the Atlas team and operate big Boeings all over the world is a very attractive career move for our pilots.”
Current GoJet pilots with the requisite time in service may immediately opt-in to the Atlas guaranteed interview program, while new GoJet pilots may do so as soon as time-in-service requirements are met.
With GoJet mentoring and a guaranteed interview, pilots invited to join Atlas can look forward to advancing their careers with a growing global air carrier, the opportunity to fly wide-body Boeing aircraft, and airline transportation to and from their base.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
About GoJet Airlines:
GoJet Airlines is a premier regional carrier operating as United Express and Delta Connection. GoJet proudly flies the Bombardier CRJ700 and CRJ900, two of the youngest and most technologically advanced regional jets in the industry. GoJet serves over 4.5 million passengers annually, with more than 240 daily flights providing service to over 60 destinations. GoJet is headquartered in St. Louis, Missouri, and has crew bases in Chicago, Denver, Detroit, Raleigh-Durham and St. Louis.
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Will Discuss During Investor-Analyst Day Presentations Today
Webcast Begins at 2 P.M. Eastern Time on June 25
Purchase, NY, Monday, June 25, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today said that it is increasing its second-quarter and full-year 2018 earnings outlooks.
Reflecting the demand for our aircraft and services, we now anticipate our second-quarter adjusted income from continuing operations, net of taxes, will grow by 40% to 45% compared with first-quarter 2018 adjusted net income of $23.8 million, up from 30% to 35% growth expected previously.
For the full year, we expect our adjusted income from continuing operations, net of taxes, to rise 35% to 40% compared with 2017 adjusted net income of $133.7 million, an increase from our prior outlook of low- to mid-30% growth.
Investor-Analyst Day Webcast
As previously announced, the company will broadcast presentations by senior management at its investor-analyst day today beginning at 2 p.m. Eastern time and concluding at approximately 4 p.m.
Interested parties are invited to listen to the Webcast live over the Internet at: https://edge.media-server.com/m6/p/za8gzzj6
For those unable to listen to the live Webcast, an archived replay will be available through the company’s website (www.atlasair.com) shortly following the conclusion of management’s presentations.
About Non-GAAP Financial Measures
We provide guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.
To supplement our financial statements presented in accordance with U.S. GAAP, we present certain non-GAAP financial measures to assist in the evaluation of our business performance. These non-GAAP measures include Adjusted income from continuing operations, net of taxes, which excludes certain noncash income and expenses, and items impacting year-over-year comparisons of our results. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for Income from continuing operations, net of taxes, which is the most directly comparable measure of performance prepared in accordance with U.S. GAAP.
Our management uses these non-GAAP financial measures in assessing the performance of the company’s ongoing operations and in planning and forecasting future periods. We believe that these adjusted measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance.
For example, Adjusted income from continuing operations, net of taxes, provides a more comparable basis to analyze operating results and earnings and is a measure commonly used by shareholders to measure our performance. In addition, management’s incentive compensation is determined, in part, by using Adjusted income from continuing operations, net of taxes.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc., and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings, and other information may be accessed through the company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Atlas Air Worldwide’s current views with respect to certain current and future events and financial performance. Those statements are based on management’s beliefs, plans, expectations and assumptions, and on information currently available to management. Generally, the words “will,” “may,” “should,” “expect,” “anticipate,” “intend,” “plan,” “continue,” “believe,” “seek,” “project,” “estimate,” and similar expressions used in this release that do not relate to historical facts are intended to identify forward-looking statements.
Such forward-looking statements speak only as of the date of this release. They are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Atlas Air Worldwide and its subsidiaries (collectively, the “companies”) that may cause the actual results of the companies to be materially different from any future results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to effectively operate the network service contemplated by our agreements with Amazon, including the cost and timing of securing any aircraft necessary to fulfill our agreements; the risk that the anticipated benefits of our agreements with Amazon will not be realized when expected, or at all; the possibility that Amazon may terminate its agreements with the companies; the ability of the companies to operate pursuant to the terms of their financing facilities; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to their operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives, pilots and associates; the ability of the companies to attract and retain customers; the continued availability of our wide-body aircraft; demand for cargo services in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; labor costs and relations, work stoppages and service slowdowns; the outcome of pending negotiations with our pilots’ union; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; weather conditions; government legislation and regulation; changes to our provisional estimates of the impact of the U.S. Tax Cuts and Jobs Act of 2017; consumer perceptions of the companies’ products and services; anticipated and future litigation; and other risks and uncertainties set forth from time to time in Atlas Air Worldwide’s reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under the heading “Risk Factors” in the most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q filed by Atlas Air Worldwide with the Securities and Exchange Commission. Other factors and assumptions not identified above may also affect the forward-looking statements, and these other factors and assumptions may also cause actual results to differ materially from those discussed.
Except as stated in this release, Atlas Air Worldwide is not providing guidance or estimates regarding its anticipated business and financial performance for 2018 or thereafter.
PURCHASE, N.Y., Wednesday, May 23, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced the election of Jane H. Lute and Sheila A. Stamps to the company’s board of directors. Ms. Lute is a recognized leader in the area of cybersecurity and is President and Chief Executive Officer of SICPA North America. Ms. Stamps is an accomplished business leader and has extensive executive experience in finance, accounting and risk management. She is a director of CIT Group, Inc. and CIT Bank N.A.; Commissioner and Audit Committee Chair of the New York State Insurance Fund; and director of IES Abroad.
Ms. Lute previously served as Deputy Secretary, U.S. Department of Homeland Security and is a member of several international commissions focused on cybersecurity and the future of the internet. Ms. Lute began her career in the U.S. Army and served on the National Security Council staff under both Presidents George H. W. Bush and William Jefferson Clinton. Ms. Lute holds a Ph.D. in political science from Stanford University and a J.D. from Georgetown University. She is a member of the Virginia bar. Ms. Lute is also a director of Union Pacific Corporation.
Ms. Stamps was Executive Vice President at Dreambuilder Investments, LLC., and has had a distinguished career at various financial institutions, including serving as a Managing Director at Bank of America (formerly FleetBoston Financial Corporation) and an executive with Bank One Corporation (now, JPMorgan Chase & Co.). Ms. Stamps holds an MBA from the University of Chicago and completed a Fellowship at Harvard University’s Weatherhead Center for International Affairs. She serves on the Board Advisory Services Faculty of the National Association of Corporate Directors, and is recognized as an NACD Board Leadership Fellow.
“Ms. Lute’s in-depth knowledge of cybersecurity and information technology and Ms. Stamp’s diversity of strategic and financial experience make them welcome and highly qualified additions to our board of directors,” said Robert F. Agnew, Chairman of the Board, Atlas Air Worldwide. “We look forward to their contributions and are confident that Atlas Air will benefit from their insights, judgment and counsel.”
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc., and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings, and other information may be accessed through the company’s home page, www.atlasair.com.
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PURCHASE, N.Y., Friday, May 18, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced its support for the Record of Discussion signed Friday, May 11, 2018, by the United States and the United Arab Emirates (UAE) relating to market-based transactions and financial transparency of airlines of the two countries.
The document resolves concerns expressed by major U.S. passenger airlines without undercutting Open Skies principles, which have been at the core of U.S. international aviation policy for the past 25 years. Open Skies agreements afford airlines of each signatory country the right to operate flights without restriction between their homeland and the other country, via intermediate points and beyond the other country.
In its May 17, 2018, Statement from the Press Secretary Regarding the United States-United Arab Emirates Open Skies Understanding, the White House aptly noted that the UAE’s commitments are limited to subjects not covered by the U.S.-UAE Open Skies Agreement.
“Atlas Air Worldwide appreciates the Trump administration’s commitment to upholding the rights enjoyed by airlines of the U.S. and the UAE under the current Open Skies Agreement,” said William J. Flynn, President and Chief Executive Officer, Atlas Air Worldwide.
“For Atlas, Open Skies has allowed us to build a global airfreight network based on one-way traffic flows that would not otherwise have been available. Our expansive network increases service options for the U.S. military, American shippers and consumers, enhances U.S. competitiveness and improves the U.S. balance of trade in services.”
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc., and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings, and other information may be accessed through the company’s home page, www.atlasair.com.
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PURCHASE, N.Y., Thursday, May 3, 2018 — Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced strong increases in revenue, earnings and adjusted EBITDA for the first quarter of 2018, and an upwardly revised outlook for full-year 2018 growth in revenue, adjusted earnings and adjusted EBITDA.
“Our volumes and revenue grew by more than 20% in the first quarter, and our reported income, adjusted income and adjusted EBITDA rose even more sharply,” said President and Chief Executive Officer William J. Flynn.
“The strategic initiatives that we have put in place over many years have transformed our company. Our focus on express, e-commerce and fast-growing global markets has broadened our customer base and fleet. We are growing across all of our fleet types. We are operating in a strong airfreight environment and growing global economy.
“Our recent placement of a second 747-400 ACMI freighter with DHL Global Forwarding (DGF), the world’s largest airfreight forwarding company, underscores how well-positioned we are to capitalize on market dynamics to serve our customers. This second aircraft for DGF adds further controlled capacity on growing trade lanes where it expects demand volumes to continue to exceed capacity.
“With the demand we are seeing for our aircraft and services, we now expect our revenue to exceed $2.5 billion in 2018. We project adjusted EBITDA to increase to more than $500 million. And we anticipate our full-year adjusted net income will grow by a low- to mid-30% level compared with 2017, up from our prior outlook of mid-20% growth.”
First-Quarter Results
Volumes in the first quarter of 2018 increased 21% to 66,495 block hours, with revenue growing 24% to $590.0 million.
Reported income from continuing operations, net of taxes, during the period totaled $9.6 million, or $0.37 per diluted share, compared with $0.04 million, or $0.00 per diluted share, in the first quarter of 2017. Reported results for the latest quarter included an unrealized loss on outstanding warrants of $7.7 million compared with an unrealized loss on outstanding warrants of $5.2 million in the year-ago period.
On an adjusted basis, income from continuing operations, net of taxes, in the first quarter of 2018 increased $15.5 million to $23.8 million, or $0.86 per diluted share, from adjusted income of $8.3 million, or $0.31 per diluted share, in the year-ago quarter. Adjusted EBITDA increased $29.9 million to $93.8 million.
Increased ACMI segment revenue and contribution in the first quarter of 2018 were primarily driven by significant growth in block-hour volumes and a higher average rate per block hour, partially offset by higher heavy maintenance expense and amortization of deferred maintenance costs. Block hours grew 28% during the period, reflecting increased 767 flying for Amazon, the start-up of 747-400 flying for several new customers, and the redeployment of 747-8F aircraft from the Charter segment to ACMI. The increase in the average rate during the quarter primarily reflected the impact of new 747-400F and 747-8F flying.
Higher Charter segment contribution during the period was primarily driven by an increase in yields and higher aircraft utilization, partially offset by the redeployment of 747-8 aircraft to the ACMI segment. Higher average rates during the quarter primarily reflected an increase in yields, higher fuel prices, and the impact of Charter capacity purchased from ACMI customers that had no associated Charter block hours.
In Dry Leasing, higher segment contribution primarily reflected the placement of additional 767-300 converted freighter aircraft and the placement of a 777-200 freighter in February 2018.
Reported earnings in the first quarter of 2018 also included an effective income tax rate of 28.3%, due mainly to nondeductible changes in the value of outstanding warrants. On an adjusted basis, our results reflected an effective income tax rate of 16.1%.
Cash and Short-Term Investments
At March 31, 2018, our cash and cash equivalents, short-term investments and restricted cash totaled $147.5 million, compared with $305.5 million at December 31, 2017.
The change in position resulted from cash used for investing activities, partially offset by cash provided by operating and financing activities.
Net cash used for investing activities during the first quarter of 2018 primarily related to capital expenditures and payments for flight equipment and modifications, including the acquisition of 777-200 aircraft, 767-300 aircraft to be converted to freighter configuration, spare engines and GEnx engine performance upgrade kits.
Net cash provided by financing activities during the period primarily reflected proceeds from our revolving credit facility, partially offset by payments on debt obligations.
Increasing 2018 Outlook
We are increasing our outlook for 2018 to reflect our strong first-quarter results and our expectation for significant volume, revenue, and earnings growth.
With solid demand from our customers for our aircraft and services, and with the essential building blocks our strategic initiatives have set in place, we see opportunities to grow with existing customers and to add new ones.
Globally, economic activity is expanding. The airfreight market is strong, and airfreight tonnage continues to grow from record levels.
As a result, we see volumes rising approximately 19% to around 300,000 block hours in 2018, with about 75% of our hours in ACMI and the balance in Charter.
For the full year, we expect our revenue to exceed $2.5 billion, our adjusted EBITDA to increase to more than $500 million, and our adjusted net income to grow by a low- to mid-30% level compared with 2017.
We also expect our full-year 2018 adjusted income tax rate to be approximately 16%.
For the second quarter, we expect adjusted EBITDA to exceed $100 million, and adjusted net income to increase 30% to 35% compared with first-quarter 2018 adjusted net income of $23.8 million.
Aircraft maintenance expense in 2018 is expected to total approximately $320 million, mainly reflecting an increase in daily line maintenance due to the anticipated growth in block hours. Depreciation and amortization is expected to total approximately $220 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are expected to total approximately $100 to $110 million, mainly for parts and components for our fleet.
We provide guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.
Conference Call
Management will host a conference call to discuss Atlas Air Worldwide’s first-quarter 2018 financial and operating results at 11:00 a.m. Eastern Time on Thursday, May 3, 2018.
Interested parties are invited to listen to the call live over the Internet at www.atlasair.com (click on “Investor Information,” click on “Presentations” and on the link to the first-quarter call) or at the following Web address:
https://edge.media-server.com/m6/p/gf5yfcfi
For those unable to listen to the live call, a replay will be archived on the above websites following the call. A replay will also be available through May 10 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 6773418#.
About Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with U.S. GAAP, we present certain non-GAAP financial measures to assist in the evaluation of our business performance. These non-GAAP measures include Adjusted EBITDA; Adjusted income from continuing operations, net of taxes; Adjusted Diluted EPS from continuing operations, net of taxes; Adjusted effective tax rate; and Free Cash Flow, which exclude certain noncash income and expenses, and items impacting year-over-year comparisons of our results. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for Income from continuing operations, net of taxes; Diluted EPS from continuing operations, net of taxes; Effective tax rate; and Net Cash Provided by Operating Activities, which are the most directly comparable measures of performance prepared in accordance with U.S. GAAP.
Our management uses these non-GAAP financial measures in assessing the performance of the company’s ongoing operations and in planning and forecasting future periods. We believe that these adjusted measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. For example:
• Adjusted EBITDA; Adjusted income from continuing operations, net of taxes; and Adjusted Diluted EPS from continuing operations, net of taxes, provide a more comparable basis to analyze operating results and earnings and are measures commonly used by shareholders to measure our performance. In addition, management’s incentive compensation is determined, in part, by using Adjusted EBITDA and Adjusted income from continuing operations, net of taxes.
• Adjusted effective tax rate provides improved insight into the tax effects of our ongoing business operations.
• Free Cash Flow helps investors assess our ability, over the long term, to create value for our shareholders as it represents cash available to execute our capital allocation strategy.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers a broad array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Atlas Air Worldwide’s current views with respect to certain current and future events and financial performance. Those statements are based on management’s beliefs, plans, expectations and assumptions, and on information currently available to management. Generally, the words “will,” “may,” “should,” “expect,” “anticipate,” “intend,” “plan,” “continue,” “believe,” “seek,” “project,” “estimate,” and similar expressions used in this release that do not relate to historical facts are intended to identify forward-looking statements.
Such forward-looking statements speak only as of the date of this release. They are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Atlas Air Worldwide and its subsidiaries (collectively, the “companies”) that may cause the actual results of the companies to be materially different from any future results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to effectively operate the network service contemplated by our agreements with Amazon, including the cost and timing of securing any aircraft necessary to fulfill our agreements; the risk that the anticipated benefits of our agreements with Amazon will not be realized when expected, or at all; the possibility that Amazon may terminate its agreements with the companies; the ability of the companies to operate pursuant to the terms of their financing facilities; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to their operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives, pilots and associates; the ability of the companies to attract and retain customers; the continued availability of our wide-body aircraft; demand for cargo services in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; labor costs and relations, work stoppages and service slowdowns; the outcome of pending negotiations with our pilots’ union; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; weather conditions; government legislation and regulation; changes to our provisional estimates of the impact of the U.S. Tax Cuts and Jobs Act of 2017; consumer perceptions of the companies’ products and services; anticipated and future litigation; and other risks and uncertainties set forth from time to time in Atlas Air Worldwide’s reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under the heading “Risk Factors” in the most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q filed by Atlas Air Worldwide with the Securities and Exchange Commission. Other factors and assumptions not identified above may also affect the forward-looking statements, and these other factors and assumptions may also cause actual results to differ materially from those discussed.
Except as stated in this release, Atlas Air Worldwide is not providing guidance or estimates regarding its anticipated business and financial performance for 2018 or thereafter.
Atlas Air Worldwide assumes no obligation to update such statements contained in this release to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law and expressly disclaims any obligation to revise or update publically any forward-looking statement to reflect future events or circumstances.
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