Introducing our 2021 ESG Report

At Atlas Air Worldwide, today and every tomorrow is our moment to rise, as we believe building a strong business today is good for our people, communities and the planet tomorrow.

Every day, our employees around the globe carry the world forward by living our values, working together and delivering on our promises. Our shared sense of purpose advances our commitment to “Caring for the World We Carry,” and accelerates our progress on our environmental, social and governance (ESG) journey.

As part of this commitment, we are pleased to share the release of our 2021 Environmental, Social and Governance (ESG) Report. Our third ESG report outlines our sustainability and corporate responsibility achievements in 2021 under our four ESG pillars: Environmental Stewardship; Career, Culture & Equity for Our People; Social Impact & Community Engagement; and Responsible Business Growth.

Key highlights from the 2021 ESG Report include the following:

Environmental Stewardship: We announced our support for the International Air Transport Association (IATA) and Airlines for America’s (A4A) goal to achieve net-zero carbon emissions by 2050, as well as our own goal to reduce absolute Scope 1 emissions by 20% by 2035. In addition, we published our Task Force on Climate-related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB) disclosures in concert with our new carbon emissions reduction target. Today, more than ever, stakeholders are interested in all aspects of our business, and these disclosures provide a unique view into the culture, practices and policies that make Atlas who we are.

Career, Culture & Equity for Our People: During a challenging 2021 year, we supported employees’ quality of life through enhanced benefits and wellness programs, hybrid working policies, as well as a growing focus on diversity, equity and inclusion as a driver of innovation. We promoted ongoing safety protocols, which focused on the health and well-being of our employees and the stability of our operations.

Social Impact & Philanthropy: We are proud to support our local communities through company donations and employee giving. We contributed to COVID-19 pandemic and disaster relief efforts and global humanitarian needs. Our industry attracts top talent, and the need for talent will only increase in the future. As such, we invested in initiatives to strengthen the pipeline of diverse, qualified STEM talent needed to ensure the aviation industry remains strong for years to come.

Responsible Business Growth: We evolved our governance policies through revisions to our Employee Handbook and Atlas Values as well as the establishment of new Leadership Principle. We also advocated on behalf of Atlas, the air cargo industry and key stakeholders on priority topics such as attracting the aviation workforce of the next generation and supporting government policies to help the industry reduce its greenhouse gas emissions.

We are proud to release our third ESG report to our employees, investors, customers, suppliers, partners, legislators and industry peers, as it is our commitment to the world in which we work and the people that we serve.

To learn more about Atlas Air Worldwide’s ESG efforts, view the Company’s 2021 ESG Report.

 

Reinforces its Ongoing Commitment to Sustainability and Corporate Responsibility
Report Announces Company’s Carbon Emissions Reduction Target

Purchase, N.Y., May 9, 2022 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), a leading global provider of outsourced aircraft and aviation operating services, announced the release of its 2021 Environmental, Social and Governance (ESG) Report today.

Featuring the theme “Caring for the World We Carry,” Atlas’ third ESG report outlines the Company’s sustainability and corporate responsibility achievements in 2021 under its four ESG pillars: Environmental Stewardship; Career, Culture & Equity for Our People; Social Impact & Community Engagement; and Responsible Business Growth.

“We believe building a strong and responsible business today is good for our people, communities and the planet tomorrow,” said John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide. “Our 2021 ESG Report reflects the next step in Atlas’ ESG journey, including announcing our carbon emissions reduction target, as well as our strategies to achieve this target.”

Key highlights from the 2021 ESG Report include the following:

Environmental Stewardship

  • Announced its support for the International Air Transport Association (IATA) and Airlines for America’s (A4A) goal to achieve net-zero carbon emissions by 2050, as well as Atlas’ goal to reduce absolute Scope 1 emissions by 20% by 2035.
  • Published its Task Force on Climate-related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB) disclosures in concert with its new carbon emissions reduction target.

Career, Culture & Equity for Our People

  • Supported employees’ quality of life through enhanced benefits and wellness programs, hybrid working policies, as well as a growing focus on diversity, equity and inclusion as a driver of innovation.
  • Promoted ongoing safety protocols focused on the health and well-being of the Company’s employees and the stability of its operations.

Social Impact & Philanthropy

  • Gave back through corporate and employee philanthropy supporting local communities, COVID-19 pandemic and disaster relief, and global humanitarian efforts.
  • Invested in developing and strengthening the pipeline of diverse, qualified STEM talent needed to ensure the aviation industry remains strong for years to come.

Responsible Business Growth

  • Improved governance policies through revisions to its Employee Handbook and Atlas Values as well as the establishment of new Leadership Principles.
  • Advocated on behalf of Atlas, the air cargo industry, and key stakeholders on priority topics such as attracting the aviation workforce of the next generation, strengthening transportation supply chains and supporting government policies to help the industry reduce its greenhouse gas emissions.

To learn more about Atlas Air Worldwide’s ESG efforts, view the Company’s 2021 ESG Report.

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., 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 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.atlasairworldwide.com.

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  • 1Q Reported Net Income of $81.5 Million
  • 1Q Adjusted Net Income of $88.8 Million
  • 1Q Adjusted EBITDA of $202.8 Million
  • $100.0 Million of Share Repurchases

PURCHASE, N.Y., May 5, 2022 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced first-quarter 2022 net income of $81.5 million, or $2.38 per diluted share, compared with  $89.9 million, or $3.05 per diluted share, in 2021 (which included $40.9 million, $31.9 million after tax, of CARES Act grant income).

On an adjusted basis, EBITDA totaled $202.8 million in the first quarter of 2022 compared with $181.3 million in the prior-year period. For the three months ended March 31, 2022, adjusted net income totaled $88.8 million, or $2.99 per diluted share, compared with $72.2 million, or $2.45 per diluted share, in 2021.

“We are off to an excellent start in 2022. We delivered strong earnings, despite the pandemic-related operational challenges we continue to navigate,” said Atlas Air Worldwide President and Chief Executive Officer John W. Dietrich. “I would like to thank the entire Atlas team for their ongoing commitment to deliver this great performance.”

He added: “Atlas continues to demonstrate the value of airfreight as a vital component of the global supply chain. We are seeing a sustaining shift in long-term customer demand for Atlas’ dedicated aircraft, and the speed and reliability airfreight provides. During the first quarter, our customers continued to enter and enhance long-term contracts with Atlas for dedicated freighter capacity.

“We are expanding and diversifying our customer base, and increasing flying under long-term contracts with attractive rates and guaranteed levels of flying. To meet customer demand, we are also investing in our world-class fleet by adding four new 747-8F and four new 777 freighter aircraft. All four of our new 747-8Fs have been placed with customers under long-term contracts, and we have strong interest for the new 777Fs as well.”

Mr. Dietrich concluded: “We are very well positioned for the years ahead. We have significantly strengthened our balance sheet and have a healthy cash balance. This provides us the financial flexibility to opportunistically deploy capital, including investing in our business and returning capital to shareholders.”

First-Quarter Results

Revenue grew to $1.0 billion in the first quarter of 2022 compared with $861.3 million in the prior-year quarter. Volumes in the first quarter of 2022 totaled 82,626 block hours compared with 88,523 in the first quarter of 2021.

For the three months ended March 31, 2022, our reported net income totaled $81.5 million, or $2.38 per diluted share, compared with net income of $89.9 million, or $3.05 per diluted share, in the first quarter of 2021 (which included $40.9 million, $31.9 million after tax, of CARES Act grant income).

On an adjusted basis, EBITDA was $202.8 million in the first quarter this year compared with $181.3 million in the first quarter of 2021. Adjusted net income in the first quarter of 2022 totaled $88.8 million, or $2.99 per diluted share, compared with $72.2 million, or $2.45 per diluted share, in the prior-year period.

Reported earnings also included an effective income tax rate of 22.8%. On an adjusted basis, our results reflected an effective income tax rate of 22.3%.

Higher Airline Operations revenue primarily reflected an increase in the average rate per block hour, partially offset by a reduction in block hours. The higher average rate per block hour was primarily due to higher yields (net of fuel), including the impact of new and extended long-term contracts, as well as higher fuel prices. Block-hour volumes reflected a reduction in less profitable smaller gauge CMI service flying as well as operational disruptions due to the spike in Omicron cases globally.

Higher Airline Operations segment contribution in the first quarter of 2022 was primarily driven by higher yields (net of fuel), including the impact of new and extended long-term contracts. These improvements were partially offset by increased pilot costs related to our new collective bargaining agreement (CBA) and higher premium pay for pilots operating in certain areas significantly impacted by COVID-19.

In Dry Leasing, segment revenue and contribution increased from the prior-year period primarily due to $5.0 million of revenue received from maintenance payments related to the scheduled return of an aircraft, which was subsequently sold during the quarter. Dry Leasing contribution also benefited from lower interest expense related to the scheduled repayment of debt.

Unallocated income and expenses, net, increased during the quarter, primarily due to $40.9 million in CARES Act grant income recognized in 2021 (which was excluded from our adjusted results).

Share Repurchases

As previously announced in February 2022, our Board of Directors approved a share repurchase program authorizing up to $200.0 million of our common stock, which we began by entering into a $100.0 million accelerated share repurchase program (ASR). In total, we repurchased 1,234,144 shares under the ASR, which was completed in April.

Additional purchases may be made at our discretion in the form of open market repurchase programs, ASRs, privately negotiated transactions, or a combination of these methods.

Fleet

As previously disclosed, we are purchasing five of our existing 747-400Fs at the end of their leases during the course of this year, one of which was acquired in March. We expect to complete the remaining four aircraft acquisitions between May and December 2022.

Acquiring these widebody freighters underscores our confidence in the demand for international airfreight capacity, particularly in express, e-Commerce and fast-growing global markets. Keeping these aircraft in our fleet ensures continuity of capacity for our customers, which will drive strong returns for Atlas in the years ahead.

Cash

At March 31, 2022, our cash, including cash equivalents and restricted cash, totaled $740.9 million compared with $921.0 million at December 31, 2021.

The change in position resulted from cash used for investing and financing activities, including $115.0 million for pre-delivery payments for our new aircraft and $100.0 million for our ASR, partially offset by cash provided by operating activities.

Net cash used for investing activities during the first quarter of 2022 primarily related to payments for flight equipment and modifications, including aircraft pre-delivery payments, as well as capital expenditures and spare engines.

Net cash used for financing activities during the period primarily related to payments on debt obligations and the ASR.

2022 Outlook*

For the second quarter of 2022, we expect revenue to exceed $1.1 billion from flying more than 85,000 block hours. We also anticipate adjusted EBITDA of approximately $215.0 million, and adjusted net income to grow by a high-single-digit percentage compared with adjusted net income of $88.8 million in the first quarter of 2022.

For the full year, we expect to fly more than 350,000 block hours, with revenue of approximately $4.6 billion, and adjusted EBITDA of about $1.0 billion. In addition, we anticipate adjusted net income in the second half of 2022 to improve approximately 60% compared with adjusted net income in the first half of this year.

We expect aircraft maintenance expense in 2022 to be similar to 2021, and depreciation and amortization to total about $300 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are projected to total approximately $135 to $145 million, mainly for parts and components for our fleet.

We also expect our full-year 2022 adjusted effective tax rate will be approximately 23.0%.

This outlook includes the contribution from numerous new or enhanced long-term customer contracts, as well as higher pilot costs from our new CBA. We also expect second-quarter results to continue to be impacted by premium pay for pilots operating in certain locations significantly impacted by COVID-19.

Other than with regard to revenue, we provide guidance on an adjusted basis because we are unable to predict with reasonable certainty and without unreasonable effort the effects on future gains and losses on asset sales, special charges and other unanticipated items that could be material to our reported results.*

Conference Call

As previously announced, management will host a conference call to discuss Atlas Air Worldwide’s first-quarter 2022 financial and operating results at 11:00 a.m. Eastern Time on Thursday, May 5, 2022.

Interested parties may listen to the call live at Atlas Air Worldwide’s Investor site or at https://edge.media-server.com/mmc/p/w2te9jpb.

For those unable to listen to the live call, a replay will be archived on the Investor site following the call. A replay will also be available through May 12 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 3594535#.

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 net income; Adjusted Diluted EPS; 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 Net income; Diluted EPS; 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, respectively.

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 net income; and Adjusted Diluted EPS 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 net income.
  • Adjusted effective tax rate provides 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.

*Other than with regard to revenue, we provide guidance only on an adjusted basis and are unable to provide forward-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 and without unreasonable effort, the ultimate outcome of certain significant items, including future gains and losses on asset sales, special charges and other unanticipated items. These items are uncertain, depend on various factors, and could have a material impact on our U.S. GAAP results.

>View Tables

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. 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 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.atlasairworldwide.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,” “could,” “would,” “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; 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; changes in U.S. and non-U.S. government trade and tax policies; economic conditions; the impact of geographical events or health epidemics such as the COVID-19 pandemic; the impact of COVID-19 vaccine mandates; our compliance with the requirements and restrictions under the Payroll Support Program; the effects of any hostilities or act of war or any terrorist attack; significant data breach or disruption of our information technology systems; labor costs and relations, work stoppages and service slowdowns; financing costs; the cost and availability of war risk insurance; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; geopolitical events; weather conditions; natural disasters; government legislation and regulation; border restrictions; 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 2022 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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In celebration of World Pilots’ Day on April 26, let’s go behind the scenes of how we prepare our pilots to travel the world!  As pilots get their Atlas career off the ground, their first stop is Miami, home to Atlas Air’s world-class Training Center. Pilots will typically spend their first three months in the training center. “Safety is our top priority in all aspects of training,” said John Schumacher, Senior Director, Flight Procedures, Training and Standards. “We also emphasize professionalism, personal responsibility and the importance of interaction in every component of training.”

Trainee pilots first attend several weeks of Basic Indoctrination, Security/Emergency Training, Aircraft Systems, and System Integration Training (SITs) prior to completing their oral exam. New pilots will then step into one of the company’s eight simulators housed in both the training center and local training partner facilities.  The company proudly owns four 747 Sims, two 767 Sims, one 737 Sim, and one 777 Sim.

After successfully passing their oral exam, pilots work with their instructors and Sim partner to complete Fixed Base Simulator Training (FBS), Full Flight Simulators (FFS), the FAA Type Rating/PC, Line Qualification Training (LQT), and other fleet specific required training.  “After months of hard work, successfully completing their training is a very proud moment for the students and instructors. Their safety and success is top of mind for everyone in the Training Center,” said Teressa Mastrosimone, Director of Training Center Operations.

Once they have received their type rating and completed training in Miami, new pilots are next scheduled for Operating Experience (OE) —an extension of their training – on an actual aircraft.

Atlas Air’s professionals also train the crews that fly Air Force One, a contract Atlas Air has held since 2007. Those crews are trained on the Air Force’s VC-25, a modified version of the Boeing 747-200, and receive ground and flight-simulator training at Atlas Air’s Training Center.

Verne Yoder has been a pilot at Atlas Air for five years and runs Pilot Professional Development and initial Crew Resource Management for new hires at the training center. “I like to be one of the very first people they see because on the very first day I am going to tell them how much I like working for Atlas Air,” he said.

Yoder usually has up to 25 students per day. In the Human Factors class he teaches, trainees are taught how to manage challenges that are presented operationally. The goal is to foster an environment in which the crew can work together to solve any problems that arise. Trainees learn from both instructors and each other.

“Our instructors have a lot of tenure and knowledge,” Mastrosimone said.  Many of our instructors are pilots who spent the majority of their careers at Atlas Air. “Going through training as a new hire, you are able to hear from someone who flew the line for 20 years. They’re not just telling you about flying the airplane, but their experiences and life at Atlas,” she added.

Many instructors split time between flying the line and teaching new trainees in the Training Center, but Atlas also leverages retired pilots as instructors. Retirement age for pilots is 65. “Some pilots have reached retirement age, but instead of hanging up their hat, they stay on board working in the Training Center where they can share their wisdom with the next generation of aviators.”

From the minute new pilots are hired by Atlas Air, they are supported by the entire Atlas family. From training schedulers to fleet captains, from classmates to instructors, pilots at Atlas Air always know someone has their back.

“Through the entire training journey, beginning to end, you have an extensive support channel of people and resources,” Mastrosimone said.

Are you interested in becoming a pilot? Click here to see our open positions https://careers.atlasairworldwide.com/careers/?departments=Other

Atlas Air's world class training center in Miami Trainee pilots attending class at Atlas Air's training center in Miami