Atlas Air Worldwide Preannounces Expected Third-Quarter EPS, Updates Full-Year EPS Outlook

The company also anticipates that fully diluted earnings per share for the year ending December 31, 2013, will total between $3.40 and $3.80 on an adjusted basis and $3.75 and $4.15 on a reported basis.

Forecast third-quarter and full-year earnings per share reflect a much less robust commercial airfreight peak season than previously anticipated. While commercial airfreight volumes are strengthening, airfreight yields remain under pressure. In addition, military cargo volumes have declined at a more rapid rate. Together, a lower-than-expected commercial airfreight market and lesser expected military cargo demand have reduced anticipated profitability for the third and fourth quarters of 2013.

Partially offsetting these challenges are increasing contributions from investments to diversify the company's business mix, led by new 747-8 freighters in the company's core ACMI business; the addition of 777 freighters with predictable, long-term revenue and earnings streams in Dry Leasing; an expanding 767 service platform; entry into military and commercial charter passenger operations; and continuing growth in the company's non-asset-intensive CMI operations. Also contributing are ongoing continuous improvement productivity and efficiency initiatives.

"The initiatives we have undertaken to strengthen our core ACMI operations, diversify our business mix, and enhance our operating efficiency have enabled us to continue to generate significant profitability despite soft commercial charter market yields over the past three years and a material reduction in U.S. military cargo demand that we have long prepared for," said President and Chief Executive Officer William J. Flynn.

Mr. Flynn added: "We remain focused on the long-term growth of our business, and will continue to leverage our core competencies and industry leadership to deliver advantages and value to our customers and stockholders."

Atlas Air Worldwide intends to report full results for the third quarter on November 7, 2013. The company will also provide details about its revised outlook for 2013 on that date.