ACMI is bright spot in Atlas Air's Q2 report
The second quarter of 2011 signaled good news for Atlas Air’s ACMI operations, with revenues increasing 27 percent from the second quarter of 2010. Executives at the cargo airline attribute much of this growth to higher block-hour volumes — customers outpaced contractual minimums by 4.6 percent during the quarter.
Atlas Air spokespeople said total block hours were up 7 percent from the second quarter of 2010, and average operating aircraft surged 12 percent in 2011.
The acquisition of additional aircraft also strengthened Atlas Air’s ACMI operations. In fact, the cargo carrier contained an average of 22.1 dedicated ACMI aircraft in the second quarter of 2011, compared to only 16.8 freighters during the same time period in 2010.
Atlas Air’s ACMI business did well in the second quarter, but the company took on more expenses when compared to 2010, spending an additional $16.8 million on fuel, mostly for its commercial charter and military passenger charter business. While commercial charter fuel prices ballooned by 48 percent, this was offset a bit by a 33 percent year-over-year decline in the amount of fuel used during commercial charter operations.
Atlas Air CEO William J. Flynn expects this growth to continue, as the company anticipates the delivery of its first Boeing 747-8F in October; two more of these aircraft will arrive in November.
“Our 747-8F aircraft will drive volumes and profitability in our core ACMI business,” Flynn remarked. “At the same time, volumes in our military passenger business, including our new B767 operations, are expected to grow to more than 10,000 block hours in 2012 from less than 1,000 block hours this year and none in 2010.”
Flynn is also optimistic that Atlas Air will be able to parlay its current success into the future. “We look forward to driving our revenues and earnings to higher sustained levels over the next several years and beyond,” he said in a statement.