Atlas Air Worldwide forecasts reduced earnings for 2019, noting 'trade tensions'

Atlas Air Worldwide Holdings CEO William J Flynn forecast (01-Aug-2019) adjusted net income for the full year 2019 will be approximately 80% of the company's 2018 income (2018: USD204.3 million), based on current conditions. Mr Flynn commented: "Despite the present trade tensions and the resulting impacts on global airfreight, we have the right building blocks for the future". The company provided the following outlook for 2019:

• Approximately 330,000 block hours, with about 75% in ACMI and the remainder in charter operations. The company expects 85,000 block hours in 3Q2019, with about 75% in ACMI;
• Revenue of approximately USD2.9 billion and adjusted EBITDA of approximately USD520 million. The company expects revenue of more than USD700 million and adjusted EBITDA of about USD125 million in 3Q2019;
• Aircraft maintenance expense of about USD395 million, with depreciation and amortisation of about USD260 million;
• Core capital expenditures, excluding aircraft and engine purchases, projected to total approximately USD135 million to USD145 million, mainly for fleet parts and components. [more - original PR]