Purchase, N.Y., April 7, 2022 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) announced the appointment of Doug McKeen to the newly established position of Senior Vice President, Labor Relations.
In this new role, Mr. McKeen will be responsible for continuing to develop and implement the Company’s labor relations strategy, as well as the administration of labor agreements that govern represented employees at Atlas.
“We are incredibly fortunate to have a leader of Doug’s caliber on our team,” said Atlas Air Worldwide President and Chief Executive Officer John W. Dietrich. “His employee-focused approach, depth of labor relations experience and productive relationship-building skills will be a great asset to our Company and our teams. In his 30+ year career, Doug has built a solid reputation as a fair, thoughtful negotiator who is respected by all who sit with him around the bargaining table.”
Mr. McKeen previously worked at United Airlines as Senior Vice President, Labor Relations for 11 years, where he developed, implemented and applied labor strategy and negotiated labor agreements for more than 70,000 domestic and international represented employees. Before joining United, Mr. McKeen was Senior Vice President, Employee Relations and Communications at ASTAR Air Cargo. Prior to his time at ASTAR, he held executive labor relations leadership roles at US Airways, Northwest Airlines and America West Airlines.
Most recently, Mr. McKeen worked with Atlas in a consulting capacity as the Company’s lead negotiator in the completion of the recent collective bargaining agreement with its pilots.
Mr. McKeen holds a bachelor’s degree in finance from the University of Iowa and a juris doctor degree from Hamline University School of Law.
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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Purchase, N.Y., April 6, 2022 – Titan Aircraft Investments, the joint venture between Titan Aviation Holdings, Inc. and Bain Capital Credit, today announced the placement of three Boeing 757-200SF converted freighters on long-term dry leases with Amerijet International Inc. to support its network in Central America and the Caribbean. Titan Aviation Holdings, a subsidiary of Atlas Air Worldwide Holdings Inc. (NASDAQ: AAWW), will manage these assets.
“We are delighted to welcome Amerijet as a strategic customer and to support its long-term expansion plans. This partnership underscores the trust our customers have in Titan’s expertise in freighters,” said Michael Steen, President and Chief Executive Officer of Titan Aviation Holdings and Chief Commercial Officer of Atlas Air Worldwide.
“I’m incredibly proud of our employees who worked tirelessly to bring the B757 project to fruition. These aircraft will be a wonderful addition to our fleet, giving us a platform for continued growth as we approach 50 years of continuous service from our home base in Miami, Florida,” said Tim Strauss, Amerijet’s Chief Executive Officer.
Titan Aviation Holdings and Bain Capital Credit formed a long-term joint venture in 2019 to develop a diversified freighter aircraft leasing portfolio with an anticipated value of approximately $1 billion. The long-term joint venture capitalizes on demand for cargo aircraft, underpinned by robust e-commerce and express market growth.
Under the joint venture, Titan provides aircraft- and lease-management services.
About Titan Aviation Holdings and Atlas Air Worldwide:
Titan Aviation Holdings is a freighter-centric leasing company that provides dry leasing solutions to airlines worldwide. Titan’s fleet of cargo aircraft support customers, including international flag carriers, express operators, e-commerce providers, and regional and domestic carriers. Titan’s deep airfreight domain expertise and innovative asset management solutions help customers quickly ramp up their aviation operations while minimizing capital investment. Since its inception in 2009, Titan has grown to become the third largest freighter lessor globally by fleet value, owning and/or managing 33 aircraft on lease to customers worldwide with a book value of over $1.5 billion.
Titan Aircraft Investments Ltd, is a long-term joint venture Titan Aviation Holdings entered into with Bain Capital Credit, LP to develop a diversified freighter aircraft Dry Leasing portfolio that aims to capitalize on demand for cargo aircraft, underpinned by robust e-commerce and express market growth. Under the joint venture, Bain Capital and Titan have committed to provide $360.0 million and $40.0 million of equity capital, respectively, which may be supplemented with additional commitments over time, to acquire aircraft over the next several years with an anticipated portfolio value of approximately $1.0 billion. Titan Aviation Holdings provides management services to the joint venture, including aircraft acquisitions, lease-management, passenger-to-freighter aircraft conversion oversight, technical expertise and disposal of aircraft.
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.
About Amerijet:
Amerijet International Airlines is a leading global air-cargo airline based in Miami, Florida. Amerijet operates its own dedicated freighter fleet of B767 aircraft throughout the United States, Caribbean, Mexico, Central and South America, and Europe. The Company recently added several B757 aircraft to its fleet to provide additional route flexibility and service options to its customer base. The Company provides its scheduled service region with approximately 8,250 freighter flights annually. In addition, Amerijet also offers extensive worldwide long- and short-term ACMI, CMI and full-service charters to leading shippers and logistics partners, and it provides regular air cargo services to the U.S. Department of Defense.
Amerijet’s global network, including its interline partners and general sales agents, reaches over 400 destinations in Europe, Asia, Africa, and the Middle East with seamless and transparent transportation solutions for customers shipping time-sensitive, valuable, hazardous, oversize, temperature-controlled and other cargo types.
More information about Amerijet can be accessed at www.amerijet.com.
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Captain Colin McLean.
Captain Colin McLean was captivated by the magic of air travel early in life. Learning about his aunt’s career as a pilot helped fuel a childhood fascination with aviation that began with collecting model airplanes and grew to become his life’s ambition.
But, he said, it was the encouragement of others along the way that helped shape him into the respected pilot, mentor and leader that he is today.
“Throughout my career, others have rendered their time and assistance to me, and they have passed on to me invaluable advice, without which I may not have gotten where I am today,” said Colin. “Captain Steve Turner (recently retired Southern Air Director of Flight Operations) played an integral role in my career. He has the ability to motivate and inspire while achieving the main objective.”
Colin’s gratitude for the help and encouragement he’s had from Steve and other mentors throughout his career inspires him to serve in that role for others.
“I am very grateful to be a mentor. As a captain, I take the opportunity to motivate others around me,” he said. “It is a rewarding experience to see someone excel in their dreams knowing that you contributed to that process. Teaching by way of example is vital. Mentoring is a selfless exercise, which changes lives and gives us hope.”
Captain McLean early in his aviation career.
Colin said he is especially mindful of the need for mentorship of women and people from minority backgrounds in aviation.
“People of color and women are hugely underrepresented in this business, especially in the pilot profession,” said Colin, who volunteers as a mentor for Organization of Black Aerospace Professionals (OBAP) and Women in Aviation. “It is no coincidence why this figure is so low, considering the cost of obtaining a commercial pilot’s license and the lack of access to opportunities. It is simply out of reach for many people from underrepresented backgrounds. I am proud of the fact that Atlas has stepped up by initiating programs like Roadway to Giant and Pathway to Success.”
Colin’s own career in aviation began with the support and encouragement of his parents.
“My parents encouraged me to go to college first, which I did,” said Colin, who attended Florida Atlantic University. “During that time, I always asked them, when can I pursue a career as a pilot? They recognized how passionate I was so, they assisted me in going to flight school.”
After Colin obtained his private pilot’s license in April 2003, his parents encouraged him to continue his training, and he achieved his commercial multiengine license in 2004. His first job as a pilot was for a charter company in Fort Lauderdale. He then flew for two cargo airlines, before deciding to return to college.
Captain McLean with Atlas First Officer Hannah Dalla Riva.
Colin ultimately returned to college and earned his degree in Professional Aeronautics from Embry-Riddle Aeronautical University in 2009, and he has been accepted into a master’s degree program at the university. In 2015, he joined Southern Air/Atlas Air, where he is now a 737 Captain and Check Airman.
During his time at Atlas, Colin has become known for his eagerness to uplift and encourage others. His philosophy about mentorship has special resonance during Black History Month, when we honor those individuals whose sacrifices and successes have influenced the lives of others and will continue to do so for generations to come.
“Black History Month marks an occasion when we should all be reminded of those who are still struggling under the weight of poverty and hopelessness and to commit to strengthening the bond between Americans,” Colin said. “I see this month as a time when those among us who may have achieved leadership roles should step forward and help to pave the way for the greater good of the young and disenfranchised.”
He continued, “Black History Month should be a time for action and to commit to the betterment of human beings as a whole.”
Joanna Mata, Director, Financial Systems, IT.
From a very early age, Joanna Mata understood that an education provided a roadmap for how to approach life with the goal of self-improvement.
“Both of my parents grew up in poor countries,” said Joanna, Director, Financial Systems, IT. “My mother is from Haiti, and my father is from the Dominican Republic. They both left their homes to come to the United States seeking better opportunities. And they both worked very hard to seize those opportunities – holding down jobs while going to school, so they could eventually get better jobs.”
When Joanna was five, her mother enrolled her in boarding school in Lowell, Massachusetts.
“My mother had very high standards,” Joanna explained. “She didn’t love our neighborhood or the after-school programs; she worried that they weren’t good enough. While she grew up in poverty in Haiti, she was acutely aware that the families ‘who did well,’ sent their children to boarding school. So, that’s what she wanted to give me: a boarding school education.”
Joanna said that first experience offered a strong foundation for her academic career, and it placed her on a path to succeed.
“I learned very good habits during those early years that paved the way for future opportunities,” she said.
Those habits took her through a rigorous four years at high school in the Bronx, culminating in acceptances and scholarship offers from both New York University (NYU) and Columbia University. Joanna enrolled in NYU and maintained the grades she needed to keep her scholarship in place for all four years.
“I trace my drive – and my success – to my parents,” Joanna said. “They left their homes for a country where they didn’t speak the language; they sought an education for themselves and for us because they firmly believed it was the path to greater opportunity.”
Joanna continued, “All of this compelled me to honor them by doing the best I could with my education. I never wanted to disappoint them. I wanted them to be proud of me.”
And they have every reason to be proud. In addition to her academic and career successes, Joanna has earned the respect and admiration of her colleagues at Atlas.
“Joanna is simply awesome,” said Richard Ross, Senior Vice President, IT. “She’s created herself as the leader in Financial Systems and business processes while raising three great kids. She is a wonderful colleague.”
Initially, Joanna was set on pursuing law – she proactively took the LSATs before graduation. But she was surprised to discover how much she enjoyed an IT class that was part of the curriculum at the Business School.
“It was all about problem solving, and that really resonated with me,” she recalled.
Joanna pivoted and took a job with a global food and beverage company, where she worked as a developer between 1989 and 1992. This eventually led to a position at a global alcohol company, where she worked as a developer for four years, implementing applications in a number of different markets overseas, including France, Germany, the United Kingdom and Spain. Often, she was the only black person on the team, and she was always the only black woman.
This is one of the reasons that Black History Month is so important to Joanna.
“I remember when we didn’t have Black History Month and being part of the discussion to support this effort in Congress,” said Joanna. “I also remember having jobs at companies that hadn’t yet adopted Martin Luther King, Jr. Day as a holiday. Regardless, I always took it as a personal day. I felt it was a hard-won victory that I was going to celebrate.”
Joanna with her family.
She continued, “Celebrating Black History Month and Martin Luther King, Jr. Day helped me with my own sense of self. It also gave me strength to pursue my career. As the only black person in the room, I understood there was work to be done. I took that very seriously. However, the fact that I was there, in the room, also meant that some progress had been made. It was, and still is, very important to me to celebrate those individuals who worked so hard to drive change so that I can continue on the path that I’m on, and my three daughters (Delilah and twins Maya and Jayla ) have the freedom to pursue their dreams.”
February is the twins’ – one of whom is named Maya after Maya Angelou – favorite month, Joanna said. They are among a small percentage of black students at the school they attend, and the school’s focus on Black History Month instills them with a sense of pride.
“I’m very pleased that the schools are focusing on it, and I’m equally as pleased to see the acknowledgment here at Atlas,” Joanna said. “It’s so important to be inclusive of the Black experience and learn about all of these people who were heroes.”
At home, Joanna and her family spend a lot of time talking about those heroes. When the twins were six years old and Delilah was two, the family began a tradition of discussing an individual from history at the dinner table each evening of Black History Month.
“It’s been a really inspiring exercise,” said Joanna. “We have all learned so much about these trailblazers over the years, and I know we are better for it.”
Purchase, N.Y., February 17, 2022 – Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), and Cainiao Network (“Cainiao”), the logistics arm of Alibaba Group, today announced the expansion of their strategic partnership by adding a new Boeing 747-8 Freighter under a long-term agreement to increase capacity on routes between China and the Americas.
This expansion builds upon Atlas Air’s partnership with Cainiao, and the new aircraft will enter service for Cainiao in the second quarter of 2022, linking China with the United States, Brazil and Chile.
This 747-8F aircraft is among the last 747s ever to be produced by Boeing. As previously announced, Atlas ordered the last four 747 production aircraft to capitalize on strong demand and deliver value for its customers, while also bolstering its commitment to environmental stewardship through the reduction of aircraft emissions, resource consumption and noise. The iconic Boeing 747 program has been in operation for over 50 years and will continue to play a critical role in keeping global supply chains moving for decades to come.
“We are very pleased to extend our strong partnership with Cainiao with the placement of one of our new 747-8Fs, the best performing widebody freighter in the industry with unique nose-loading capability,” said Atlas Air Worldwide President and Chief Executive Officer John W. Dietrich. “Cainiao is a leader in the fast-growing e-Commerce logistics market, and we look forward to continuing to support its global network with the superior and reliable service Atlas Air provides. This fuel-efficient, high-capacity aircraft reinforces the commitment to environmental stewardship that Atlas and Cainiao share.”
“Through our successful partnership, Cainiao has been able to offer our customers across the Americas with faster and more eco-friendly deliveries provided by Atlas’ global operating capabilities. We are excited to add the new Boeing freighter to our expanding partnership in response to the growing demand for e-Commerce and greener logistics across the world,” said William Xiong, Cainiao’s Chief Strategist and General Manager for Export Logistics.
The Boeing 747-8 Freighter is the most capable, technologically advanced and environmentally friendly widebody freighter. The 747-8F provides 20% higher payload capacity and 16% lower fuel consumption than the very capable 747-400F.
In November 2021, Cainiao expanded its partnership with Atlas Air to include daily charter flights operated between China and Latin America in response to the growth of cross-border trade between China and Latin America.
About Cainiao Network:
Founded in 2013, Cainiao Network (“Cainiao”) is a smart logistics company and the logistics arm of Alibaba Group. As part of its commitment to create customer value, it adopts a collaborative approach to logistics that aims to improve efficiency and customer experience for all players along the supply chain. It carries forward Alibaba’s mission of making it easy to do business anywhere by aiming to deliver anywhere in China within 24 hours, and across the globe within 72 hours.
Media Contact
Jin WU
jinwujun@alibaba-inc.com
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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Purchase, N.Y., February 17, 2022 – Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), today announced it has entered into a long-term, dedicated charter agreement to operate two of its new incoming Boeing 747-8 freighters on a global basis for Kuehne+Nagel, one of the world’s largest freight forwarders.
Atlas Air will commence operation of these aircraft for Kuehne+Nagel following their delivery from Boeing, with one expected in the third quarter and the second in the fourth quarter of 2022. Atlas Air operates one of the world’s largest fleets of 747-8Fs, the most capable freighter aircraft in the world. These two aircraft placed with Kuehne+Nagel are the last 747s Boeing will produce.
As previously announced, Atlas ordered the last four 747 production aircraft to capitalize on strong demand and deliver value for its customers, while also bolstering its commitment to environmental stewardship through the reduction of aircraft emissions, resource consumption and noise. This legendary aircraft has been in production for over 50 years and will continue to serve the needs of our global supply chains for decades into the future.
“We are delighted to expand our partnership with Kuehne+Nagel by providing dedicated capacity for their growing global airfreight network,” said Atlas Air Worldwide President and Chief Executive Officer John W. Dietrich. “The Boeing 747-8F serves an incredibly important role in global airfreight, with advanced technology that allows for lower fuel consumption, higher capacity and unique nose-loading capability. We look forward to taking delivery of these two 747s and operating them for Kuehne+Nagel to support their network for years to come.”
Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, commented: “As a market leader in airfreight, Kuehne+Nagel further expands its dedicated charter network to support customers with solutions for long-term planning and high-quality service. We are proud to partner with Atlas Air and include these two new Boeing 747-8Fs in our already extensive global capacity offering.”
The 747-8F provides 20% higher payload capacity and 16% lower fuel consumption than the very capable 747-400F.
About Kuehne+Nagel
With more than 76,000 employees at 1,400 locations in over 100 countries, the Kuehne+Nagel Group is one of the world’s leading logistics companies. Its strong market position lies in Sea Logistics, Air Logistics, Road Logistics and Contract Logistics, with a clear focus on integrated logistics solutions.
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.
Strong Outlook for 1Q22
All New 747-8F Deliveries Placed Under Long-Term Agreements
Announces $200 Million Share Repurchase Program
Including $100 Million Accelerated Share Repurchase
Full-Year 2021 Results
Fourth-Quarter 2021 Results
PURCHASE, N.Y., February 17, 2022 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced record 2021 results, including revenue that rose to $4.0 billion, and net income that increased to $493.3 million, or $16.16 per diluted share, compared with $3.2 billion in revenue, and net income of $360.3 million, or $13.50 per diluted share, in 2020.
On an adjusted basis, EBITDA increased to a record $1.1 billion in 2021 compared with $844.2 million in 2020. For the twelve months ended December 31, 2021, adjusted net income rose to a record $551.0 million, or $18.51 per diluted share, compared with $379.0 million, or $13.67 per diluted share, in 2020.
“2021 was another outstanding year with excellent financial and operating performance. Our greatest strength is our people and I’d like to thank everyone at Atlas for working together to deliver these very strong results. We are also very pleased to have achieved a long-term labor agreement with our pilots that recognizes their significant contributions to Atlas. With the strength, flexibility and resiliency of our global business model, our experienced and dedicated team delivered high-quality service to our customers in an operating environment with persistent pandemic-related obstacles,” said Atlas Air Worldwide President and Chief Executive Officer John W. Dietrich.
“We are leveraging our world-class fleet and global operating capabilities to increase aircraft utilization and capitalize on strong demand for our services and dedicated freighters, as well as on higher airfreight yields.”
He continued: “We have now placed our new 747-8Fs under long-term agreements, enhanced numerous long-term contracts with strategic customers and further diversified our customer base. In 2021, we deepened relationships with valued customers, including Cainiao, CEVA Logistics, DB Schenker, DHL, DSV, FedEx, Flexport, Geodis, HP Inc., Icelandair, JAS, Kuehne+Nagel, SF Group and UPS.
“We take a disciplined and balanced approach to capital allocation. We have strengthened our balance sheet, made significant investments in our fleet, including new 747-8 and 777 freighter aircraft, and are returning capital to our shareholders. Consistent with our balanced capital allocation approach, our Board has authorized a new $200 million share repurchase program, and we are starting by implementing $100 million in accelerated repurchases.
“Atlas is very well positioned for the future. We have a dedicated and talented team of employees, a strong balance sheet, a formidable fleet of aircraft, an unparalleled network of customers and unrivaled global operating capabilities. We also have a strong position and look forward to growing our Titan dry leasing business. And our strategic focus on express, e-Commerce and fast-growing markets will continue to drive our business forward.”
Mr. Dietrich added: “We expect strong performance in the first quarter of 2022, with adjusted EBITDA and adjusted net income similar to the first quarter of 2021. We also anticipate revenue of about $1.0 billion from flying approximately 85,000 block hours.
“This outlook reflects higher yields, including the contribution from numerous new or enhanced long-term customer contracts, as well as higher pilot costs from our new joint collective bargaining agreement that went into effect in September 2021.
“Due to the uncertainty related to the pandemic, ongoing supply chain disruptions and other factors, we are not providing additional guidance at this time.”
Full-Year Results
Volumes in 2021 grew to 364,061 block hours compared with 344,821 in 2020, with revenue increasing to $4.0 billion in 2021 from $3.2 billion in 2020.
For the twelve months ended December 31, 2021, our reported net income rose to $493.3 million, or $16.16 per diluted share, compared with $360.3 million, or $13.50 per diluted share, in 2020.
On an adjusted basis, EBITDA grew to $1.1 billion in 2021 compared with $844.2 million in 2020. For the twelve months ended December 31, 2021, adjusted net income increased to $551.0 million, or $18.51 per diluted share, compared with $379.0 million, or $13.67 per diluted share, in 2020.
Reported results in 2021 included an effective income tax rate of 23.8%. On an adjusted basis, our results reflected an effective income tax rate of 22.0%.
Fourth-Quarter Results
Volumes in the fourth quarter of 2021 totaled 91,985 block hours compared with 96,079 in the fourth quarter of 2020, with revenue rising to $1.2 billion compared with $932.5 million in the prior-year quarter.
For the three months ended December 31, 2021, our reported net income totaled $176.7 million, or $5.55 per diluted share, compared with net income of $184.0 million, or $6.15 per diluted share, in the fourth quarter of 2020.
On an adjusted basis, EBITDA was $361.8 million in the fourth quarter this year compared with $279.7 million in the fourth quarter of 2020. Adjusted net income in the fourth quarter of 2021 totaled $211.6 million, or $7.05 per diluted share, compared with $143.2 million, or $4.83 per diluted share, in the prior-year period.
Reported earnings in the fourth quarter of 2021 also included an effective income tax rate of 24.3%. On an adjusted basis, our results reflected an effective income tax rate of 21.7%.
Higher Airline Operations revenue primarily reflected an increase in the average rate per block hour. The higher average rate per block hour was primarily due to an increased proportion of higher-yielding flying, including the impact of new and extended long-term contracts, the ongoing reduction of available cargo capacity in the market, the continued disruption of global supply chains, as well as higher fuel costs. Block-hour volumes during the period reflected a reduction in less profitable smaller gauge CMI service flying, partially offset by our ability to increase the utilization of our current fleet to meet strong customer demand. Block-hour volumes benefited from the operation of a 747-400 freighter we reactivated during the fourth quarter of 2020.
Higher Airline Operations segment contribution in the fourth quarter of 2021 was primarily driven by the positive factors benefiting segment revenue mentioned above as well as lower heavy maintenance expense. These improvements were partially offset by higher pilot costs related to our new joint collective bargaining agreement (JCBA).
In Dry Leasing, segment revenue and contribution in the fourth quarter of 2021 were relatively unchanged compared with the prior-year period.
Unallocated income and expenses, net, increased during the quarter, primarily due to $67.2 million in CARES Act grant income in 2020 and a $14.1 million increase related to adjustments to paid time-off benefits in our new JCBA in 2021 (both of which were excluded from our adjusted results), as well as a $6.6 million reduction in refunds of aircraft rent paid in previous years.
Fleet Management
We have now placed all four of our new and incoming 747-8Fs under long-term agreements. We expect delivery of these aircraft between May and October this year.
In addition, we look forward to the deliveries and placements of the four new 777-200LRFs we recently announced, for which there is very strong demand. We expect one to be delivered late in the fourth quarter of this year and three more throughout 2023.
As previously disclosed, we purchased six of our existing 747-400Fs during 2021 that were formerly on lease to us. We are also purchasing another five of our other 747-400Fs at the end of their leases during the course of this year, which range from February to December.
Acquiring these widebody freighters underscores our confidence in the demand for dedicated international airfreight capacity, particularly in express, e-Commerce and fast-growing global markets. These investments are consistent with our long-term strategic growth plan and will provide customers with modern and environmentally-efficient aircraft, which will drive strong returns for Atlas in the years ahead.
Cash
At December 31, 2021, our cash, including cash equivalents and restricted cash, totaled $921.0 million compared with $856.3 million at December 31, 2020.
The increase resulted from cash provided by operating activities, partially offset by cash used for investing and financing activities.
Net cash used for investing activities during 2021 primarily related to payments for flight equipment and modifications, including all pre-delivery payments for 747-8F aircraft, as well as capital expenditures, spare engines and GEnx performance upgrade kits.
Net cash used for financing activities during the period primarily related to payments on debt obligations, partially offset by proceeds from debt issuance.
Share Repurchases
In February 2022, our Board of Directors approved the establishment of a new share repurchase program authorizing up to $200.0 million of our common stock. Purchases may be made at our discretion in the form of accelerated share repurchase programs, open market repurchase programs, privately negotiated transactions, or a combination of these methods.
As part of the share repurchase program, the company will enter into a $100.0 million accelerated share repurchase program (ASR). Purchases under the ASR are expected to be completed by the end of the second quarter.
Outlook*
We expect strong performance in the first quarter of 2022, with adjusted EBITDA and adjusted net income similar to the first quarter of 2021. We anticipate revenue of about $1.0 billion from flying approximately 85,000 block hours.
This outlook reflects higher yields, including the contribution from numerous new or enhanced long-term customer contracts, as well as higher pilot costs from our new JCBA.
We expect first-quarter results to continue to be impacted by ongoing pandemic-related expenses, including premium pay for employees flying into locations significantly impacted by COVID-19 and other operational costs, including for regulatory compliance and providing a safe working environment for our employees.
For the full year in 2022, we expect aircraft maintenance expense 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.
Due to the uncertainty related to the pandemic, ongoing supply chain disruptions and other factors, we are not providing additional guidance at this time.
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 fourth-quarter and full-year 2021 financial and operating results at 11:00 a.m. Eastern Time on Thursday, February 17, 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/whtitre6.
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 February 24 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 9953709#.
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:
*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.
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 (in the Middle East or elsewhere) 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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Senior Director of Customer Service and Support Kurt Reid.
Growing up, Senior Director of Customer Service and Support Kurt Reid knew he wanted two things in life: to be an ice cream man and to become a pilot.
Originally from Jamaica, Kurt grew up in Brooklyn, New York. He recalled his days of helping his father sell ice cream out of his Mr. Softee truck during the summer. Once he accomplished that first goal, he moved forward with pursuing his dream to become a pilot.
Although Kurt was a top athlete in both Track & Field and Varsity Football, he gave up athletic scholarships in both sports during his senior year of high school and accepted admission into the Aeronautical Science program at Embry-Riddle Aeronautical University in Daytona Beach, Fla. Kurt was now on track to accomplish his second goal to be a pilot. Once he began flying and learned more about the career and lifestyle requirements of a pilot, he realized he would rather pursue a different path in aviation.
Kurt in the simulator in Miami.
After returning home to New York, Kurt applied to the Vaughn College of Aeronautics and Technology for Airport Management. “I felt a lot more comfortable with this direction,” Kurt explained. “I knew I found my calling in Aviation management.”
That calling brought him to a successful career at Atlas, where he has been a dedicated employee and leader for over 20 years.
Kurt was introduced to Atlas in 1999 when he was looking for an internship while a student at Vaughn. He met Vito Joya, Atlas Dispatch Manager, who was in the process of transitioning his career from Dispatch to Air Traffic Control, which was his dream. Vito and Kurt built a friendship while they were in the same air traffic control class, and Vito recommended Kurt for a job at Atlas.
Kurt joined Atlas two weeks later and was a student by day, employee by night. Before officially graduating with his Airport Management degree from Vaughn, he was promoted to Operations Manager in 2002.
Kurt in the cockpit of N850GT in Milan, Italy.
“Atlas has truly been my first and only real job,” said Kurt.
He recalled good times with his colleagues working the midnight shift at JFK. The operations representatives took a liking to Kurt, which helped to reinforce his love for the Company.
“The mindset at Atlas is that nothing is impossible,” Kurt said. “We always conquer. We always push forward, and we always succeed.”
Kurt’s colleagues have noticed that Kurt embraces that very mindset as well. “Kurt and I have worked side by side since the very beginning of our careers at Atlas Air,” said Kevin Sarubbe, Senior Vice President, System Ops, and Kurt’s manager. “He arrived on day one with a “can do” positive attitude that continues to shine today. I think Kurt’s approach to problem-solving and customer service is a huge asset to Atlas and the cornerstone of his success. It is never about ‘why we can’t,’ but rather ‘how we can?’”
Kurt explained that although the learning curve was steep early in his career, the talent among Atlas employees — and their guidance — has made his job so much easier.
Kurt and his son with his late grandfather.
“We consistently find a way to get it done because of the teamwork here,” he said.
In 2015, Kurt was promoted to Director of Customer Service, and with the promotion came the opportunity to build a new department.
“It was a big leap – I had to step up and make it happen,” he recalled. “So many of the department heads reached out to me and offered their support. I was really touched by that, and it made me realize that the people at our Company are what makes Atlas, Atlas.”
In addition to his supporters at Atlas, Kurt is quick to express his gratitude for the champions in his corner while growing up.
Kurt with his 5th grade teacher Mrs. Pollack, the woman who changed his life.
The move to Brooklyn from Jamaica was initially quite jarring. He left a rural way of life behind for the inner city.
There weren’t a lot of opportunities in Jamaica, which led both of his parents to migrate to America.
“While in America, both of my parents worked very hard to put me and keep me on the right path – and I am so grateful for that,” he said.
Kurt recalled his fifth-grade teacher, Mrs. Pollock, pulling him aside and telling him that she was going to recommend him to go to specialized junior high school.
“She saw something in me,” Kurt recalled. He went to high school in Sheepshead Bay, which was an hour and a half bus ride each way.
Kurt at the Sydney Opera House in Australia.
“I did that from the sixth grade all the way through to my senior year in high school. It was worth it – I went to school in a much better neighborhood that offered a rich diversity of people and experiences. I wish my neighborhood could have provided the same,” he said. “I know from my experience that without Mrs. Pollock opening up my eyes to something different, I likely wouldn’t be where I am today.”
Ronald McNair, America’s second Black astronaut, who sadly died in the NASA Space Shuttle Challenger explosion, was also a significant source of inspiration for Kurt.
“He showed me that with hard work anything is possible. He taught me to reach for the stars.”
The flowers that comprise the bouquet you give or receive this Valentine’s Day will appear out of thin air. Specifically, they will likely have been flown in from Colombia and Ecuador—probably on an Atlas Air Boeing 747 aircraft.
Each year, Atlas ships over five million kilograms of flowers from these two countries to Miami. Roses, hydrangeas, carnation, and others make the annual trip from farms to consumers.
“On our 747s, we can carry approximately 100,000 kilograms of flowers,” Frank Diaz, Director of Sales and Marketing at Atlas Air, said. “During this Valentine’s peak season, we will have at least 50 flights dedicated solely to transporting flowers.”
Well before February 14, Atlas representatives hold discussions with vendors and managers to begin planning shipments to ensure that everything runs smoothly and safely. They work with vendors to ascertain staffing resources and needs, warehouse managers to allocate sufficient space for the shipments, and much more.
“We notify all the parties associated with the operation as to what we expect for the upcoming season,” said Arian Castellanos, Atlas’s Regional Manager of South America. “We make sure everyone is aligned and ready.”
Lucas Vargas, Assistant Manager of Station Operations and Ground Operations, said it’s especially crucial to coordinate how many trucks will be received and thus how big the overall operation will be. “We transfer that information to our vendors to make sure they have enough personnel to break down the pallets, segregate the flowers as necessary and ultimately deliver the cargo.”
Throughout the process, communication is critical among Atlas team members to proactively manage potential challenges before they arise.
“With careful planning, we effectively manage the process and ensure a smooth operation,” said Lucas.
Atlas’s decade of experience in floral transportation helps for a smooth trip. “We started flying into Ecuador in 2012 and Colombia in 2016,” said Luis Fernando Del Valle, Regional Director of Sales Marketing at Atlas Air “There’s quite a lot that needs to be managed. We basically double, and some days triple, our normal capacity offering into Ecuador and Colombia during the peak season. With the right planning, we are able to pull this off, despite space constraints in Miami.”
Following initial planning, Atlas team members manage the logistics required to keep the flowers fresh on their journeys.
Flowers come directly to the airport from farms by way of refrigerated trucks. Team members offload flowers into a large vacuum-like machine that takes out moisture to keep them cool and fresh. This pre-cooling process is proceeded by team members loading the cargo into coolers, where they are kept for the remainder of the flight and securely stored at temperatures between two to eight degrees Celsius.
Patricio Sanchez, Regional Director of Sales Marketing at Atlas Air, calls this the “cool chain process” in which everyone and everything has a role, from the trucking service to the warehouses to the aircrafts and flight crews themselves. Upon landing, the process is reversed; the chilled cargo is unloaded from the aircraft, placed in refrigerated trucks and warehouses, and, ultimately, shipped to its final destination.
Over the years, Atlas Air has been able to refine its approach through learned best practices, most of which have been gleaned through conversations with the ones that know the flowers best: the farmers who grow them.
After every peak season, Atlas Air representatives visit farmers to see how that year’s operation went. What went well? What could be done better? How can service be improved?
Peak season is particularly important to the industry. For some farms, the performance during peak season could make a difference in whether they are profitable.
Overall, the feedback from Atlas customers has been exceptional.
“Operating on time and having an expedited release process is something our customers and the industry are looking for,” Lucas said. “During our outreach, most of the feedback that we get is excellent. Customers feel we’ve been doing a great job handling these peak seasons.”
For Frank, Arian, Lucas and many other hardworking Atlas team members, this is only the beginning of peak flower season.
“Mother’s Day is pretty comparable to Valentine’s Day,” said Frank. “Maybe even a little busier.”
You can be sure that the work for May 8th has already started.
Looking to take your career to new heights? Check out our career openings here.
Wainwright (Wain) McKenzie
In the eight years Wainwright McKenzie, Regional Manager, Heavy Maintenance Materials, has been at Atlas, he’s held several roles within the Company, setting him on a path of continuous learning.
From IAH (Houston) Supervisor to Stores Manager US region to his current role, Wayne has amassed an extensive breadth of knowledge and experience. And he wouldn’t have it any other way.
“I’m always looking for the next challenge,” said Wayne. “Setting goals – and achieving them – is important to me. I take every opportunity to learn something new, as I know that makes me better.”
Wayne credits his parents for this commitment to self-improvement.
“I came to the United States from Guyana when I was 15,” Wayne recalled. “My parents very much believed that America was the land of opportunity. They believed that moving to this country would give us the most opportunities to be the very best we could be. My parents were great models of how to elevate ourselves. I take great pride when my family says I’m following in my father’s footsteps.”
Wayne’s love of learning is what led him to pursue aviation as a career.
Wayne moving into his new desk at Erianger
“Growing up, my family and I did a fair amount of traveling,” Wayne recalled. “I thought airplanes were fascinating, and I wanted to know everything about them – what they were made of and what made them fly.”
After graduating from high school, Wayne started learning the answers to his questions. He first took a job in ground ops a large passenger airline and then worked for a Swiss aviation company in ground ops pushing back planes.
From there he went to another passenger airline, which was where he was when he learned about Atlas. At the time he was working in JFK Stores, AOG Coordinator and then Materials Coordinator for checks. A former colleague recruited Wayne to be IAH Houston) Supervisor.
“At this point, I had been in aviation for quite some time, so I was thrilled by the opportunity to take my knowledge and apply it to something new in a different city,” said Wayne.
That was in January 2014. Since then, Wayne has consistently stretched and challenged himself to take on new roles and responsibilities at Atlas, establishing himself as a go-to resource for colleagues across the Company.
“He is a dedicated and valuable team member of the Stores and Logistics group,” said Aloisio Lopes, Director, Stores and Logistics.
Wayne exploring the pyramids in Mexico City
Nancy Escobar, Manager of Stores, added, “Wayne is an active mentor to so many of our colleagues in Tech Ops. He is so passionate about aviation and always willing to help others.”
Wayne acknowledged that he draws inspiration to help others from those who came before him, particularly those who he has learned about over the years during Black History Month.
“I’m grateful to be in a position to share my knowledge and experience with others,” he said. “Black History Month is important to me because it both spotlights Black achievement and gives visibility to the people and organizations creating change. I have learned about my ancestors’ struggles, what they did to overcome challenges and how they helped others to change outcomes. It inspires me to do the same here at Atlas and in my community. As we celebrate Black History Month, I hope my colleagues recognize that, by helping others, we can be greater together.”
First Officer Phyllis Manoah in the cockpit.
Growing up in Melbourne, Australia, Atlas Air 747 First Officer Phyllis Manoah loved scrambling up to the rooftop of her home, where she would dream about her future.
“We lived near an airport, and my brother and I loved watching the 74 birds come in,” Phyllis recalled. “I was about eight at the time, and I remember telling my brother, ‘We could be pilots and get as far away as possible and never have to do any chores again!’”
Phyllis’s dream began to take shape in high school. Once students in Australia complete secondary school, they take a series of tests designed to identify career paths that best match their strengths. When Phyllis came home with her report, she shared it with her parents and asked for their help in how to become a pilot.
“My parents guided and encouraged me,” said Phyllis. “They helped me select the right courses for the remainder of high school and helped me study for my exams. My stepdad played an important role in keeping me on track. With their support, I received a partial bursary to The Royal Melbourne Institute of Technology (RMIT) and earned my Bachelor of Applied Science (Aviation).
After graduation, Phyllis’s career took off at an airline in Singapore. She first worked as a flight attendant and then transitioned into Crew Scheduling. Because she wasn’t required to travel, this position enabled her to continue to make progress on getting her pilot’s license.
Once she was ready to start building the required 1,000 total hours of flight time, Phyllis made the tough decision to move to Papua New Guinea because low-hour jobs were in short supply locally.
Remote yet breathtaking, Papua New Guinea is considered one of the most isolated and dangerous places to fly. And although everyone told her not to go, Phyllis took the job with an Indonesian airline in pursuit of her dream. She began flying in medical supplies and materials for mining and construction in one of the most hostile regions of the world. She stayed six years.
First Officer Phyllis Manoah
“Landing amidst so much unknown eventually took a toll on me,” Phyllis shared. “And the risk got to be too great.”
In 2014, Phyllis left Papua New Guinea and headed to the United States to obtain FAA certification.
“My first job in the States was as a First Officer on the ERJ 145 for a regional carrier,” said Phyllis. “A few years into the job, a colleague of mine introduced me to friends at Atlas, who were just so passionate about the airline. They told me they were hiring, and I should consider it. I was intrigued as it felt like I was coming full circle: My office at my first job for the Singapore airline – my first in the industry – had a view of the ramp where Atlas parked. I can’t tell you how many times I would look out the window, just mesmerized by the 747 tail.”
Phyllis joined Atlas in December of 2019. She flew the 767 for almost two years and recently transitioned to the 747.
“The first plane I ever stepped foot in was a Qantas 74. It’s a majestic and beautiful plane, and it’s the plane I have always associated with Atlas. It’s the pinnacle of my dream coming to fruition,” said Phyllis.
Here at Atlas, in addition to advancing her career, Phyllis has been an integral part of the effort to advance diversity, equity and inclusion (DEI) within our workplace.
“I joined the DEI Employee Council to be part of an inclusive support network that strives to create a safe and efficient environment for all,” said Phyllis, who has Indigenous Australian as well as Zimbabwean heritage.
This commitment to fostering a culture of inclusion extends beyond Atlas; Phyllis is an active member of two organizations of professional Black pilots who are committed to supporting future Black aviators through mentorship, professional development, outreach and scholarship.
Phyllis credits the stories shared within the African American community, and particularly during Black History Month, as the impetus for her involvement.
“It’s important to discuss how African American pioneers – despite the odds being stacked against them – made history and paved the way for future generations,” said Phyllis. “I have found that sharing these stories in communities like OBAP and Sisters of the Skies inspires and encourages us to work together to achieve our dreams, too.”
Purchase, N.Y., January 27, 2022 – Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), today announced an agreement to expand its partnership with Flexport, the technology platform for global logistics, to add a third Boeing 747-400 freighter to its existing fleet beginning in September 2022. This long-term charter agreement reflects the strong customer demand for Atlas’ services and dedicated international widebody airfreight capacity.
The agreement between Flexport and Atlas Air will broaden Flexport’s network of dedicated freighters to include service from Asia to Los Angeles (LAX), Miami (MIA) and soon, Chicago (ORD). The additional freighter will increase Flexport’s dedicated airfreight capacity from Atlas Air by 50% and allow for enhanced schedule flexibility as new origins and destinations are added in 2022 and beyond. The move eastward across the United States will improve airfreight accessibility for global shippers and enable them to design airfreight networks that best serve their interests as part of strong, resilient multi-modal supply chain strategies.
“We look forward to enhancing our long-term relationship with Flexport as we continue to support the growth and expansion of its network with dedicated freighters,” said Michael T. Steen, Executive Vice President and Chief Commercial Officer, Atlas Air Worldwide. “Atlas Air is strategically positioned to serve Flexport with an unparalleled fleet of widebody freighters and our vast global footprint. Our team is pleased to deliver even more value to Flexport and its customers through the world-class service they can depend on from Atlas Air.”
“We’re thrilled to expand our partnership with Atlas Air Worldwide to bring additional capacity to Flexport clients amid a turbulent time in airfreight,” said Neel Jones Shah, Executive Vice President and Global Head of Airfreight at Flexport. “This strategic agreement will strengthen Flexport’s dedicated capacity network and provide global shippers with additional origins and destinations throughout Asia and the United States, ultimately enabling them to build more flexible and resilient supply chains.”
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.
About Flexport:
We believe trade can move the human race forward. That’s why it’s our mission to make global trade easy for everyone. Flexport is the platform for global logistics—empowering buyers, sellers and their logistics partners with the technology and services to grow and innovate. Companies of all sizes—from emerging brands to Fortune 500s—used Flexport technology to move nearly $19B of merchandise across 112 countries in 2021.
Purchase, N.Y., January 20, 2022 – Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), today announced the extension of a long-term aircraft transportation services agreement to operate a Boeing 747-400 Freighter for SF Group (SF), China’s leading express service provider, between China and the United States.
The agreement, which has been in place since 2018, enhances the operating capability of SF and extends its fast-growing global network.
“We are very pleased to extend our strong partnership with SF,” said John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide. “SF is a key player in the growing express and e-commerce markets, and we look forward to supporting their rapid global expansion. We value the opportunity to continue providing the superior, reliable service that SF and its customers expect of Atlas.”
SF, based in Shenzhen, Guangdong, is one of the world’s largest express providers and one of China’s leading couriers.
“Our partnership with Atlas Air supports our network between China and the U.S. to further integrate our high-quality transport capacity resources to shorten delivery times,” said a representative of SF.
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.
About SF:
SF is one of the largest integrated logistics service providers in China and the fourth largest express enterprise worldwide in terms of market capitalization, and is committed to becoming a data and technology-driven company providing independent third party solutions. It empowers customers with leading technology and provides customers with smart and integrated supply chain solutions covering various industries and application scenarios. SF is also a smart logistics operator with network scale advantages, integrating aviation, ground and information networks, boasting an operating model with strong management and control over the whole network.
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(L-R) David Tidwell, Undergraduate Program Officer for the Department of Aviation at Auburn; Dr. James Birdsong, Assistant Professor and Program Coordinator, Aviation Department; John Dietrich; David Miller, Instructor, Auburn University and Cade Kennemer, Certified Flight Instructor, Auburn University.
John Dietrich, President and Chief Executive Officer, and Jeff Carlson, Senior Vice President, Flight Operations, recently visited Auburn University in Alabama to speak with students in the school’s Aviation Program about Atlas Air and to offer insights from their own careers.
Auburn’s aviation program has grown from 88 students in 2014 to more than 600 in 2021. Students will graduate with Aviation Management or Professional Flight degrees and have the option to take courses on air cargo operations.
John and Jeff were invited to campus to observe the thriving program and share the story of Atlas Air Worldwide and the many opportunities to build successful careers here.
David Tidwell, Undergraduate Program Officer for the Department of Aviation at Auburn, said the students, most of whom are in their junior or senior year, appreciated learning about the variety of careers available at AAWW.
“John’s and Jeff’s willingness to share what they have enjoyed throughout their careers and what they considered as they decided what to pursue next as they built their careers really resonated with our students,” he said. “That kind of insight is really valuable as our young professionals begin their careers.
John said he welcomed the invitation to visit Auburn and glimpse the workforce of tomorrow. And, he said, he was impressed with what he saw.
“Connecting with students who are pursuing aviation as their life’s work reminds us why we do what we do as we share our company’s unique story,” John said. “These impressive students are all prospective colleagues, and we hope they consider joining our great team at some point.”
Following the presentation, students led a tour of Auburn’s Flight Education facility.
“We welcome the interest in Atlas from this next generation of aviation leaders,” Jeff said. “It’s clear that we will learn from them as well.”
Students who took part in the Cargo Connect event.
Atlas’ Dan Abaroa, Senior Director of Commercial Analysis & Revenue Management, Global Sales & Commercial Development, and Jim Vallerie, Manager, IT Business Services – Corporate and Commercial, recently served as panelists at The STEM Alliance’s First LEGO League Robotics Team Virtual Expert Night a middle school in Larchmont, New York.
First LEGO League (FLL) is a competition that introduces science, technology, engineering and math (STEM) to children through fun and exciting hands-on learning. Participants gain real-world problem-solving experience through a guided, global robotics program, helping students and teachers build a better future together.
The STEM Alliance, which sponsors local New York FLL teams, is a nonprofit organization dedicated to enhancing STEM education and enrichment initiatives to ensure equal access to STEM learning opportunities to all.
Each year a theme is chosen for the competition, and this year’s theme was “Cargo Connect.” Teams made up of middle school students were asked to reimagine the global transportation system and explore ways of improving how people access and deliver needed and desired goods, making all communities more connected.
Barry Fried, STEM Education and Digital Equity Consultant for The STEM Alliance of Larchmont-Mamaroneck explained, “As a part of their robotics league work, teams are charged with considering and proposing new solutions for the future of transportation. The exciting program encourages young minds to look at big topics – like global transportation – and use research and creativity to address a community-based problem related to that sector.”
To help the children get started, The STEM Alliance hosted a virtual Experts Night, where students were invited to ask their questions about cargo and logistics. Atlas’ Dan and Jim participated in the event, along with a panelist from GXO Logistics, spending two hours answering the students’ questions.
“The kids had such great questions,” said Dan. “This event took place after storms hit New York and many questions were focused around finding solutions to the impact of weather events – such as flooding – on the delivery of packages.”
Dan talked to the students about steps Atlas takes to prevent weather damage when shipping cargo and potential solutions, such as incorporating robotics into the future of these deliveries, like loading and unloading packages.
“Dan Abaroa and Jim Vallerie, who served as expert panelists for our FIRST Lego League Team research night, were simply fantastic,” said Margaret Käufer, President of The STEM Alliance, who hosted the event. “Atlas’ preeminence in air cargo transportation is unquestioned, but the patient and thoughtful answers that Dan and Jim provided were truly invaluable. They were intuitive mentors to these young minds.”
“I really enjoyed the opportunity to engage with the students,” said Dan. “I was there to provide them with help and guidance but seeing things from their perspective taught me a few things too. They offer a different viewpoint about challenges with cargo and had great ideas. It is always important to be on the lookout for different ideas that disrupt the way we are doing things so that we can learn and grow as a company.”
The STEM Alliance was appreciative of Dan’s and Jim’s time and shared how it motivated the students.
“We are encouraged that the students now have better insight into the supply chain demands and how challenges require the coordination of teamwork and communication to strategize and overcome these challenges, particularly during these past couple of years,” Barry said.
Atlas Chief Financial Officer Spencer Schwartz introduced the Company to The STEM Alliance and recruited Dan and Jim to play a role. “Dan and Jim did a fantastic job. We thank them for sharing their time, expertise, thoughtfulness and mentorship.”
The students are now working on their cargo connect projects and will present them to a panel of judges at the Hudson Valley League later this month.
Learn more about the program here.
Invests in Modern, Fuel-Efficient Aircraft to Serve Growing Airfreight Demand
Atlas Air Worldwide Holdings, Inc. announced today it has ordered four new Boeing 777 freighters in response to strong customer demand for dedicated international wide-body airfreight capacity, particularly in the fast-growing e-Commerce and Express markets.
The first of the four new 777-200LRFs is expected to be delivered in November 2022 with the other three expected to be delivered throughout 2023. This investment will bolster Atlas’ 777 fleet, which currently includes 14 freighters that the company operates or provides to customers on a dry-lease basis through its Titan Aviation Leasing subsidiary.
“We are excited to expand our fleet and service offerings for our existing and prospective customers with these four new 777s. With the best team in the industry as well as our focus on innovation and prudent fleet management, Atlas is serving the evolving needs of the global supply chain and delivering value for our customers,” said John W. Dietrich, Atlas Air Worldwide President and Chief Executive Officer.
“These new aircraft will advance our strategic growth plan as we continue to capitalize on strong demand for dedicated airfreight capacity. This investment aligns with our disciplined approach to deploying capital and meets our strict return guidelines when investing in aircraft. We anticipate this transaction will drive strong earnings and cash flows, and enhance shareholder value,” Mr. Dietrich added.
Atlas’ investment in these new 777s – the largest and longest-range twin-engine freighter in the world – underscores the company’s ongoing commitment to environmental stewardship through the reduction of aircraft emissions, resource consumption and noise.
“We are honored that Atlas Air Worldwide, as a global leader in airfreight, has once again selected to grow with Boeing and our freighter family. These new 777 freighters provide Atlas with more capacity, fuel efficiency and operational flexibility for its customers,” said Ihssane Mounir, Boeing Senior Vice President of Commercial Sales and Marketing.
In addition to its 777 fleet, Atlas is the world’s largest operator of Boeing 747 freighter aircraft, with 49 in its current fleet. As previously announced, the company will take delivery of four new 747-8 freighters during 2022, with the first delivery expected in May. These aircraft are the last four 747 freighters Boeing will produce. The company also operates and leases sizable fleets of 767 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Long before an Atlas flight lifts off for its destination, enormous effort is undertaken company-wide to ensure its journey will be a safe and successful one. Beyond the safety features built into the aircraft, the care and expertise of our teams on the ground and in the air is critical for delivering every one of our 68,000+ flights* a year safely. Safety protocols are in place not just to protect goods on an aircraft, but also to protect the crew.
At Atlas, safety is a core value, and there are a number of safety programs and best practices in place to support this commitment.
Training
Atlas has one of the most rigorous training programs in the cargo shipping industry with qualified pilots undergoing an approximate three-month training period.
Atlas has established strict pilot certification requirements. Pilots are required to have their ATP license, the pilot’s equivalent of a doctorate. While obtaining an ATP license requires 1,500 to 2,000 flight hours, Atlas Air looks to hire pilots with 3,000 to 4,000 flight hours.
Atlas keeps all training in-house, during which pilots split their time between a classroom and both fixed-base and full-motion simulators. On their first few operational flights, new pilots fly with a “check pilot” to ensure that their training was sufficient.
But pilots aren’t the only employees who benefit from Atlas’ rigorous in-house training approach. With more than 24,000 training events provided each year, every employee who touches the aircraft receives significant training, much of it related to safety.
SMS Implementation
While training provides Atlas with a strong foundation for safety, technology in the form of safety management systems (SMS) has come to play a large role as well. SMS connect multiple data systems and human reporting to ensure pilots and crew are continually aware of any potential issues relating to the aircraft.
SMS relies extensively on reporting from several sources on all levels, during every phase of any flight. SMS requires any and all safety concerns be submitted by anyone with knowledge of these concerns, whether they are pilots or members of the ground crew. The system compiles these reports, assesses risk in real time and sends findings to the crew.
“We have various safety reporting programs where anyone can submit a safety concern to the company, and we’ll take any necessary action,” said Bryan Brown, Senior Director of Safety for Atlas Air.
SMS has become the cornerstone for all safe flight practices and was mandated by the FAA in 2018. But, by then Atlas was ahead of the game. Before the mandate, Atlas proactively participated in a voluntary SMS pilot program. This effort demonstrated Atlas Air’s commitment to going above and beyond established safety protocols.
Ongoing Checks
Training and technology are crucial to keeping pilots and crews safe. But safety doesn’t stop there. Certain tasks are delegated to specific individuals for each flight to ensure nothing falls through the cracks.
One such safety check is a pilot’s maintenance review of each aircraft with the mechanic.
“Once the pilot is seated in the flight deck, he or she will review the aircraft maintenance log prior to flight departure,” Bryan said. “This procedure happens every single flight. Another crew member conducts a safety walk-around to review all major components of the aircraft.”
The checklist continues with the Loadmaster speaking with the Captain to explain what cargo is on board and the loading process, while another crew member does a security check of the materials on board. Depending on the aircraft type, a crew member conducts another walk-around once the cargo is loaded to verify safety mechanisms are in place.
“Safety is the foundation of everything we do,” Bryan said. “Every step our team takes on the ground and in the air is tied to operating safely and compliantly.”
*Based on 2020 data.
Invests in Modern, Fuel-Efficient Aircraft to Serve Growing Airfreight Demand
Purchase, N.Y., January 6, 2022 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) announced today it has ordered four new Boeing 777 freighters in response to strong customer demand for dedicated international wide-body airfreight capacity, particularly in the fast-growing e-Commerce and Express markets.
The first of the four new 777-200LRFs is expected to be delivered in November 2022 with the other three expected to be delivered throughout 2023. This investment will bolster Atlas’ 777 fleet, which currently includes 14 freighters that the company operates or provides to customers on a dry-lease basis through its Titan Aviation Leasing subsidiary.
“We are excited to expand our fleet and service offerings for our existing and prospective customers with these four new 777s. With the best team in the industry as well as our focus on innovation and prudent fleet management, Atlas is serving the evolving needs of the global supply chain and delivering value for our customers,” said John W. Dietrich, Atlas Air Worldwide President and Chief Executive Officer.
“These new aircraft will advance our strategic growth plan as we continue to capitalize on strong demand for dedicated airfreight capacity. This investment aligns with our disciplined approach to deploying capital and meets our strict return guidelines when investing in aircraft. We anticipate this transaction will drive strong earnings and cash flows, and enhance shareholder value,” Mr. Dietrich added.
Atlas’ investment in these new 777s – the largest and longest-range twin-engine freighter in the world – underscores the company’s ongoing commitment to environmental stewardship through the reduction of aircraft emissions, resource consumption and noise.
“We are honored that Atlas Air Worldwide, as a global leader in airfreight, has once again selected to grow with Boeing and our freighter family. These new 777 freighters provide Atlas with more capacity, fuel efficiency and operational flexibility for its customers,” said Ihssane Mounir, Boeing Senior Vice President of Commercial Sales and Marketing.
In addition to its 777 fleet, Atlas is the world’s largest operator of Boeing 747 freighter aircraft, with 49 in its current fleet. As previously announced, the company will take delivery of four new 747-8 freighters during 2022, with the first delivery expected in May. These aircraft are the last four 747 freighters Boeing will produce. The company also operates and leases sizable fleets of 767 and 737 aircraft for domestic, regional and international cargo and passenger operations.
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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Atlas Air is proud to be the employer of choice for some of the top pilots in the air cargo industry. The Company cares for its crew members in the cockpit and beyond with special perks and outstanding benefits. Here are a few examples:
Live Anywhere, Fly Everywhere with Gateway Travel
Pilots who fly with Atlas appreciate the ability to live anywhere in the United States. Other carriers often require pilots to get to their base through standby travel or jump seating, which can be unpredictable and requires pilots to leave home days before their scheduled flight.
When it’s time to make it to base, Atlas Air purchases the pilot a positive-space ticket, ensuring a seat on their commuter flight. This eliminates uncertainty and unnecessary waiting while giving pilots extra time to spend with family and friends.
Family Comes First
Atlas Air understands the importance of caring for our pilots’ families. With gateway travel, there is no need to uproot loved ones. In addition, pilots who work for Atlas Air have expressed that they always feel cared for during a crisis. If a pilot falls ill and is far from home, for example, Atlas Air will arrange to fly that pilot’s family to see them, in addition to providing the support and company of local colleagues for the pilot until their family arrives.
Empowerment
Atlas Air pilots are leaders and capable decision makers, and Atlas trusts them to make the important calls. The Company maps out the overarching mission, but the pilots execute it. By offering their pilots exciting and challenging destinations, Atlas Air gives them opportunities to build rewarding and lasting careers.
Variety
With trust, flexibility and the support of family, pilots for Atlas Air are prime candidates to experience a variety of different flying and mission types. To that end, Atlas Air encourages pilots to bid for different bases or schedules in order to experience new locations and types of flying.
The wide variety of customers at Atlas Air provides pilots with opportunities to vary their flying as they move through different phases of their careers. They have the option of flying short, domestic flights, if routine is appealing. But those looking for something different can bid for a base that offers overnight cargo flights, high-profile passenger charters or even flights in support of our military.
As mentioned, pilots don’t have to relocate or even start at the bottom of a seniority list as they make career shifts, as Atlas Air will get them where they need to be.
The Chance to Make a Difference
The variety of assignments offered at Atlas Air provides the opportunity for a more impactful career. Atlas pilots have transported personal protective equipment (PPE) and vaccines in response to the COVID-19 pandemic. Others have flown to and from Afghanistan to get refugees to safety. Atlas pilots also bring military members back home to see their families.
This rewarding work makes flying for Atlas Air so much more than just a job.
