Atlas Air Worldwide Holdings earned just $1.5 million in the second quarter on revenue of $438.8 million, as jet fuel costs outstripped surcharges.

Net income fell 97 percent below last year's mark of $43.2 million as the cost of fuel soared 75 percent to $213.4 million, an average price of $3.61 per gallon, the company said.

AAWW said there was strong demand for its 747-400 freighters.

"With our focus on operating efficiency and de-risked earnings growth, our business fundamentals remain solid," said William J. Flynn, president and CEO. "Aside from the impact of fuel prices, which will effectively be eliminated when we launch full service for DHL Express in October, our performance remains on track with our objectives."

In October, subsidiary Polar Air Cargo will begin operating under a long-term agreement by which DHL Express will cover virtually all fuel costs for six aircraft.