Joe Murphy on the main deck on the aircraft carrying military cargo.
Back when Joseph (Joe) Murphy was in high school, he was passionate about playing on his baseball, basketball and football teams. He has the same amount of drive today for his job as a flight mechanic here at Atlas, and appreciates the similar team approach that’s required for success.
“Everyone has to come together to make the flight a success,” said Joe. “It’s not just one person, but the entire team. We all have the same goals for the aircraft, and we have to be just as good at our jobs on the last day of a rotation as we are on the first day. We are all trying to stay consistent and maintain a perfect season.”
Joe’s interest in mechanics started when he was a child living in New York.
“I started working in a local gas station, pumping gas when I was just 10-years-old,” Joe recalled. “After that, I began fixing cars and then trucks, but I wanted to work on something bigger and faster. I became a diesel mechanic, maintaining and repairing diesel engines for buses and trucks, and then I joined the Air Force to do tactical aircraft maintenance.”
Joe’s time with the Air Force took him all over the world working on the F15 jet. After he was honorably discharged from the military, Joe went to a major American passenger airline and worked as a mechanic at JFK airport and Lambert St. Louis airport for 30 years before retiring in 2005.
Joe performing an aircraft maintenance check
Although officially retired from his airline job, Joe’s love for aviation never waned and he went on to do contract work for other airlines, including Southern, Polar and Atlas,. After a few years, he was hired by Atlas as a flight mechanic for the 747 – his current role. Joe continues to travel around the world for his job and most recently completed a rotation, which included stops in Hawaii, Korea and Japan.
Flight mechanics often live out of a suitcase, since rotations are 20 days on and 10 days off each month. For Joe, all flights “start” a few days before the actual departure.
Tech Ops evaluates all the flights and assigns every mechanic a rotation. Since each rotation includes new cargo going in and out, there is a significant amount of pre-planning that must take place to ensure the success of each flight.
“At each stop of the rotation, the aircraft needs an inspection, which includes things like topping essential fluids and reviewing write ups from the pilots that outline what needs to be addressed and fixed. I keep in close communication with Maintenance Control, and we prioritize any work that needs to be scheduled. I carry 125 pounds of my own tools on every flight.”
Joe in PPE during the height of COVID-19.
Joe added, “Our top priority is always safety so I’m focused on trying to anticipate what might come next. We have a computer onboard so I look up various things when we are flying, like making sure that all our paperwork for the aircraft is current and that all the parts that are on order are also up to date.”
Joe is extremely proud to work for Atlas, especially during the height of the COVID-19 pandemic.
“We were considered essential workers during the pandemic, so our work never stopped. I have never been so proud to work for this Company. We shipped personal protective equipment (PPE) for hospitals and civilians and later in the pandemic, we shipped vaccines. My co-workers all showed up without hesitancy and we are very proud of the role that we played.”
Lillian Dukes with the FEAM (maintenance vendor) team.
Over 140 golfers came out last month for the 20th Annual Atlas Air Worldwide Charity Golf Tournament to support charities that provide critical services to those in need in the communities where Atlas does business.
While the golf is always competitive and an important part of the day, the main draw according to Gary Wade, Vice President, Global Security, are the heartfelt presentations made by the beneficiaries during dinner. This year, another 60 or so non-golfers joined just for dinner.
“The energy from the day and into the evening is really special. Our guests really appreciate hearing directly from the charity representatives how their involvement with our tournament impacts the lives of others,” Gary explained.
Thomas Gahan, Co-Founder and Partner, Managing Director, Procyon Partners, Rocky Nigro, SVP – Sales, Toppan Vintage, Gary Wade, Mike Appleton, COO, Hotel Connections and Adam Kokas, EVP, General Counsel and Secretary.
“There really isn’t a dry eye in the house during the evening reception,” added Samantha Patterson, Manager European/Asian Regulatory Affairs and Security.
Proceeds from this year’s event were donated to K9s for Warriors, the Liberty City Optimist Club and the Food Bank of Lower Fairfield County, organizations which align with the Company’s philosophy for promoting social impact and positive change.
“Our community impact mission is focused on several areas of critical need including Supporting the U.S. Military Personnel and Their Families; Developing the Workforce of Tomorrow; and Humanitarian Relief,” said John Dietrich, President and Chief Executive, who attended along with other Atlas colleagues, including members of the Executive Leadership Team and Officers Team. “These three organizations are playing a critical role in helping our communities thrive. It is our great honor to support their efforts.”
JC Nolan, Senior Director, Intelligence & Security watches the presentation.
Committed to putting an end to military veteran suicide, K9s for Warriors provides highly-trained Service Dogs to veterans suffering from post-traumatic stress disorder (PTSD), traumatic brain injury and/or military sexual trauma. With the majority of dogs selected from high-kill rescue shelters, K9s for Warriors empowers veterans to live a life of dignity and independence – a life that many previously did not think was possible.
Warrior Toye Hickman, a retired United States Marine who served proudly for 26 years, joined the event this year on behalf of K9s for Warriors. Toye spoke about how her Service Dog Bake is helping her to take control of her life after years of overwhelming PTSD symptoms, including daily suicidal thoughts.
Gary Wade presents Toye Hickman with a gift.
“Sadly, about 20 veterans die by suicide each day. Pairing warriors with a canine can be life changing,” said Elizabeth Reeger, Development Associate, Major Gifts at K9 for Warriors.
“Our waiting list of warriors hoping to be matched with a dog is quite long and extends through 2024. Atlas’s partnership and financial support has helped cover the expenses associated with dog training, and most recently with the preliminary construction of our new Campus for K9 Operations, a ‘mega-kennel,’ which will be capable of housing more than 150 Service Dogs-in training. With Atlas’s help we are putting more dogs through our program and making real progress towards improving warriors’ quality of life.”
Like K9s for Warriors, The Liberty City Optimist Club of Florida, located five miles from our Miami Training Center, is working hard to improve the lives of others. The Club’s outreach programs are focused on enhancing the growth and development of at-risk youth in Miami Dade County.
Gary Wade at the podium with Tameika Wiley of the Liberty City Optimist Club.
Tameika Wiley, Program Manager, Liberty City Optimist Club of Florida, spoke to the relentless challenges of poverty, hunger and gang violence the Club works to mitigate for the children in their community.
“Some of these children may not eat anything outside of what they are served at the Liberty City Optimist Club….and for most of our children, our Club is the only safe space they know.”
Thanks to Atlas’s support and funds raised from previous Charity Golf Tournaments, the Liberty City Optimist Club has been able to offer free registration for participants in the sports program and reduced registration for the after-school program, which gives countless families some peace of mind.
Gary at the ground breaking of Campus for K9 Operations, an additional K9s for Warriors Northeast Florida facility, which will serve as a “mega kennel.” Once completed, it will become the nation’s largest shelter-to-Service-Dog facility, providing veterinary care and comprehensive training. Elizabeth Reeger from K9s for Warriors is on the right.
“Regardless of how dire some of these families’ financial situations may be, they are still trying so hard to save money and pay for our programs,” explained Tameika. “That’s because they believe when their kids are involved with the Club, they are safe. With Atlas’s help, we are able to relieve some of that financial burden – you can’t measure the kind of impact that has had on the community.
And that impact was made possible by Atlas colleagues, clients, partners and vendors coming together.
“This was a great effort due to the involvement of many,” said Gary. “Our 20th Annual Charity Golf Tournament is an outstanding example of bringing our core value, Teamwork, to life. It takes a team to deliver on our commitments to each other and to society.”
Gary continued, “At the heart and soul of this team are Kim Cerny, Senior Manager, Flight Operations, Julia Crupi, Senior Manager, Legal Administration and Samantha Patterson. They worked tirelessly to achieve a flawless execution of the event in addition to keeping up with their day jobs, which included assisting with the Afghanistan evacuation effort. I have immense gratitude for these three.”
Editor’s Note: There is still time to support the charities connected to this year’s Charity Golf Tournament. If you are interested please contact the Atlas Air Golf Committee.
Kim Cerny, Tameika Wiley from the Liberty City Optimist Club and Samantha Patterson.
Atlas in training at Marineland.
Atlas at home.
Toye with K9s for Warriors Service Dog Bake in front of the waterfall on Trump National Golf Course.
Toye with K9s for Warriors Service Dog Bake on his first golf cart ride.
Christina with her daughters.
Christina Villegas is Polar’s Manager of Regulatory and Compliance. Based in LAX (Los Angeles International Airport), she oversees all customs matters, ensuring compliance with air commerce regulations for all customer export and import cargo into and out of the United States.
After a first job with Disneyland, Christina transitioned to the air cargo industry in 2004 with a role at Japan Airlines (JAL) supporting Polar. She joined Polar in December 2011 and hasn’t looked back.
“I love the air freight industry and I love Polar,” said Christina. “It’s so interesting to see all the different cargo that is imported and exported every day; we fly raw materials, finished goods, life-saving equipment, even the latest smart phones. We connect people with the things they need to get their jobs done and live their lives.”
Christina leads a team across LAX and CVG over a 24/7 schedule, ensuring someone is always available to assist with compliance questions. She also oversees audits to ensure station compliance to facilitate seamless cargo transitions for Polar’s customers.
Christina prepares salsa with her daughters.
Christina credits her strong work ethic and dedication to her team and Polar to her Mexican-American upbringing. “My parents were born and raised in Mexico. They came to California to start their family with hope for a successful future for the five children they raised here.”
She added, “My heritage is a big part of how I approach my life both at work and at home. I am raising four children and it’s very important to me that I expose them to the culture and traditions that were part of my own childhood.”
In fact, Christina’s mom recently brought Christina a molcajete from Mexico. It is the same kitchen tool that her family has prepared traditional Mexican meals with for generations.
“My mother learned to cook using a molcajete from her mother – my grandmother. It’s an extremely heavy, lava-rock mixing bowl, similar to a pestle and mortar, but much bigger. There is a special method for preparing the molcajete for its first use—it begins with grinding up rice which almost seals and coats the inside of the bowl. Then you add garlic and salt and grind it all together. It was unusual to me because I haven’t cooked this way, but it was really meaningful to be following the same steps my mom, her mother, and her mother before her took to prepare their own molcajete.”
Molcajete Salsa
Christina’s children enjoy gathering around the molcajete to help their mom prepare delicious Mexican dishes, including her special extra spicy salsa made with two kinds of chiles.
“I am so appreciative for the sacrifices my parents made to give me and my siblings a better life,” she says. “Because of the way we were raised, I always do my best to honor them and their drive. I think many Latinos have similar stories and celebrating our heritage, not just during Hispanic Heritage Month but all year long, is a way to remember where we came from.”
Christina’s Molcajete Salsa:
Ingredients:
Directions:
In the molcajete:
According to Christina, the grinding action releases essential oils which add a depth of flavor to this salsa, which you would not be able to achieve with a food processor or blender.
Captain Andrew Lutz and First Officer Blythe Nakasone deliver jars of honey made by bees in their apiary to their colleagues in CVG.
Captain Andrew Lutz and First Officer Blythe Nakasone may fly out of Cincinnati/Northern Kentucky International Airport, but when they’re together at the apiary, their attention turns to a different sort of flight – the kind that carries a sweet cargo of nectar from flower to hive.
Andrew and Blythe, who married this September, are beekeepers. They tend their bees on a friend’s farm adjacent to CVG airport.
“Beekeeping is a lot like flying,” said Andrew, who flies 777s with Southern Air. “There is always more to learn. You never know everything there is to know about it.”
While Blythe is still new to the hobby, Andrew has been around beekeeping most of his life. His father, who tended bees on the family farm in central Kentucky, picked up the hobby from his father-in-law, Andrew’s grandfather.
Andrew remembers a time, when he was around seven years old, that all of his father’s bees died off and he had to stop beekeeping.
Andrew and Blythe’s bees in action.
“It was the early ‘90s,” Andrew said. “The mites moved through this area, and it decimated the hives. Nobody knew what to do about it.”
A few years later, when he was a teenager, Andrew wanted to help his father get back into the hobby so, he joined a local club dedicated to revitalizing the art of beekeeping.
Today, Andrew’s father continues to maintain the hives Andrew helped him regain, and Andrew is continuing the family tradition with the apiary he shares with Blythe. Their three hives are home to an estimated 350,000 bees and have produced a combined 12 gallons of honey so far this year.
Like his father and grandfather, Andrew appreciates the gifts from the hives.
“Andrew is so creative and so artsy,” said Blythe, who pilots 737s for Southern Air. “He does a lot more with the bees than just get honey. He makes lotions and uses the wax. He uses everything the bees give.”
In return, Andrew works to give something back to the bees. For the last several years, the honeybee population has been in decline as the result of factors ranging from the use of pesticides and other chemicals to diseases and the effects of radiation from cellular phone towers. Andrew has bred queen bees in an effort to establish disease-resistance bees. And, as a mentor for the Northern Kentucky Beekeeper’s Association, he encourages others to keep bees in hopes of building back their numbers.
Captain Andrew tends his bees while protecting himself in his bee suit.
“I want to see the bees succeed,” he said. “Without the bees, we wouldn’t have much of anything on this earth. It would look totally different. Two thirds of the produce in the grocery store would be gone. Everything is against the bees now.”
Andrew continued, “But this is a good year for them, and hopefully they are seeing a resurgence and figuring out how to survive in this world.”
In celebration of Hispanic Heritage Month, observed every year from September 15 – October 15, we will highlight Hispanic colleagues who share how their culture has shaped them and inspired their careers. Today we introduce you to Yovankha Untracht.
Yovankha (“Yova”) Untracht, Manager, Training Center Administration, is often the first face of Atlas for those coming to the Miami Training Center.
Warm, welcoming and ready to assist with a smile, anyone who has met Yova, according to Jeff Carlson, Senior Vice President Flight Operations, “has found a friend, a problem solver and an important Company resource.”
Jeff added, “In the 22 years Yova has been here, she has been fully committed to supporting others in the Atlas family.”
“I suppose it’s in my DNA,” said Yova. “Dominicans are very happy and friendly people. We love to make connections and our family and friends are very important to us.”
In addition to a love for aviation, the family-like work environment at Atlas is what keeps Yova here.
Atlas is only Yova’s second job. She started in the hospitality industry in New York City. A former boss recruited Yova and a few of her colleagues to come work in the travel department at Atlas.
“Once I started, there was no looking back for me,” recalled Yova. “I found the industry so exciting and the people were absolutely the best. It was clear to me that this was a team of people that always worked together to accomplish the mission at hand.”
This “perfect fit” led to Yova being part of opening the Global Control Center in 2001 when the Company moved to its Purchase headquarters and it was also behind the opportunity to transfer to the Miami Training Center in 2004. Today Yova reports into Jeff Carlson and is responsible for several processes that pertain to our crew members.
Picking up and moving like this might be overwhelming and disruptive to some, but moving for opportunity wasn’t new for Yova.
Yova was only 15 years old when she left the Dominican Republic to move to the United States. Her parents moved first, got settled and then brought Yova and her brother over to start a new life in New York.
“The Dominican Republic is a beautiful country. I had a very nice upbringing, a happy childhood, filled with wonderful memories and friendships during my formative years that have withstood the test of time,” explained Yova. “My parents wanted more for me and my brother. They wanted us to be exposed to different cultures, different ways of thinking and they wanted us to have access to every possible opportunity. My parents brought us to the United States because they believed living here would provide us with more opportunities and the tools to help us succeed.”
Today, Yova is still inspired from this commitment to family.
“I am very proud to be Hispanic,” said Yova. “Family is of the utmost importance to me, as is upholding my roots. Exposing my daughter to Spanish right away was non-negotiable. We have a fully bilingual household and after 20 years my husband is close to being fluent.”
She continued, “It was very important to me that I taught my daughter that it does not matter where you come from; when you work hard you can achieve anything. She has grown up learning to always remain true to the morals and values she received at home, just as I was taught.”
While Yova appreciates Hispanic Heritage Month, she celebrates the history of her culture and ancestors all year long.
“From cherished Sunday family dinners featuring Moro de Habichuelas (Dominican rice and beans) and Sancocho (a very Dominican soup/stew) to celebrating and dancing to Merengue music and folklore, my background and culture are present in my family’s daily life at home,” said Yova.
For many pilots, earning a pilot’s license marks the realization of a lifelong dream. But there is something exceptional about the first time in the Captain’s seat of a 747.
Josh Ray, who has been flying the 747 as a First Officer with Atlas Air for six years, completed his four-week upgrade training on March 31. Two days later, he piloted his first flight as Captain. InsideAtlas had an opportunity to speak to Josh about the experience and what it meant to him.
While climbing the three flights of stairs up to the cockpit of Atlas Air N496MC before the start of the flight, new 747 Captain Josh Ray couldn’t wipe the smile off his face.
Josh and his sister grew up in a small island country called Palau as the children of missionary parents. There were plenty of opportunities for traveling by airplane and Josh and his sister were enthralled by the pilots in the cockpit.
“Every chance I could, I dragged my Mom to the cockpit for a quick peek,” Josh recalled.
Josh was seven when he announced on the flight deck of a 747-2 from Honolulu (HNL) to Guam (GUM) that he wanted to be a pilot.
Fast forward 30 years, and not only has a child’s dream come true, but now he is Captain of the majestic Queen of the Skies. “My first flight as Captain was no different than the many before I had flown as First Officer,” recalled Josh.
“No matter which flight our Company crews operate, we treat each one as if it’s the only one that matters. We focus on our duties and responsibilities to safely move their jet. That’s exactly how I approached this flight, even though I was about to sit in a new seat.”
After introducing himself to First Officers Marcus Thompson and Alan Lozada-Sanchez, who was accompanying him on this milestone flight, the crew began their work of monitoring for Standard Operating Procedures (SOP) compliance and crosschecking everything in detail.
Once preflight duties were completed and the door of the fully-loaded 747 was closed, Josh started the crew briefing with a simple question, ‘What threats do you see?’
“The most significant advantage of being Captain is you set the tone of the flight,” explained Josh. “To do this effectively, you must remain approachable. You don’t want anyone to be afraid to speak up when something doesn’t look right. It’s important to have a positive attitude, which I feel goes a long way in establishing good working relationships and, ultimately, safety.”
“Josh did a great job – he was so professional and made everybody feel very comfortable and safe, right from the start,” said Alan.
Following the briefing, Marcus called LAX Ground for clearance to push back. Josh took one last glance around the cockpit and began taxiing towards the runway.
“There was a moment of silence, and I thought, ‘This is pretty cool,’” Josh recalled.
He continued, “Pushing the thrust up for takeoff is always exhilarating, but this time, as we started our takeoff roll, my focus wasn’t on just the thrill of the flight. There is simply too much at stake since the responsibility to continue or reject looms with every takeoff. As we approached the end of the runway at Maximum Gross Takeoff Weight (MGTOW), I rotated at 171 Knots to start our 11:56 minute flight to Incheon International (ICN).”
Throughout the flight, Josh shared a number of ideas with his fellow crewmembers.
“One of the things I remember most from the flight was the great CRM (Crew Resource Management) and awesome communication we had with the Captain,” said Alan. “It’s always a good idea to have new Captains who can keep aviation moving forward.”
“There is a crew operating these flights, but at the end of the day, as Captain, you are the one whose decision is going to direct the outcome of that flight. You feel the weight of the decision in the Captain seat.”
The outcome of this particular flight was ideal. There was some rain and a little bit of a crosswind on arrival, but nothing that was particularly challenging.
“The landing was completely normal,” said Alan. “Josh delivered a very thorough briefing and covered every item that could have been an issue.”
“I recall feeling a sense of accomplishment as we debriefed the flight before heading to our hotel in Incheon,” said Josh.
Alan added, “The flight with Josh motivated me to keep improving and to continue doing my best so I am in a good position when my opportunity to upgrade comes around. I think Josh will be a very good Captain as well as a great leader and a motivation for the new generations of captains at Atlas Air.”
Purchase, N.Y., September 14, 2021 – Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), announced it has entered into contract extensions with DHL Express to continue operating 20 freighter aircraft in support of their fast-growing express and e-commerce markets.
These agreements build on the long-standing strategic partnership between Atlas Air Worldwide and DHL, which began in 2008 and included DHL acquiring 49% of AAWW’s subsidiary, Polar Air Cargo, as well as a long-term agreement for six dedicated 747-400Fs to operate on key Trans-Pacific routes.
The partnership has grown significantly over the years, and under these extended agreements, Atlas Air will continue to operate four different aircraft platforms for DHL Express, including:
“DHL Express is a global leader in express and e-commerce, and it is our privilege to contribute to their continued success,” said John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide. “These agreements build on our successful 13-year partnership. We look forward to continuing to provide DHL Express with critical capacity through our modern, fuel-efficient fleet. As this agreement indicates, Atlas is capitalizing on the strong global airfreight market conditions as we deepen relationships with our customers.”
“We are pleased to extend our long-standing and valued partnership with Atlas Air,” said Rob Hyslop, Executive Vice President Aviation at DHL Express. “Continuing to utilize Atlas and its global operating capabilities enables us to best serve our customers and their continued high demand for fast international shipping, fueled by the megatrend of e-commerce and the overall importance of global trade.”
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., Southern Air Holdings, 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.
* * *
For Flight Services International (FSI) Flight Attendant Tania Anderson, caring for passengers is second nature.
That instinct to comfort and protect was never stronger than on August 26, when she served on the crew for one of Atlas’s flights in support of the Civil Reserve Air Fleet (CRAF) Afghanistan evacuation effort.
Of the 150-plus passengers on the flight, 22 were children. One was traveling alone.
Fourteen-year-old Sayid** boarded Tania’s flight in Ramstein (RMS) after getting separated from his family at a bus station in Kabul amid a rushing crowd of people trying to escape. Somehow, he made it to the airport and onto the aircraft bound for RMS by himself.
Sayid carried a trash bag that held everything he owned, including a coloring book and crayons – unusually simple treasures by American-teenager standards.
“He had diligently colored in an American flag as we were landing,” Tania said. “And then he held it up, smiling for a picture. I felt very protective of him.”
When the 767 landed at Washington Dulles International Airport (IAD), cell phones throughout the plane alerted with the news of the terror attack at the Kabul Airport, which occurred during the flight.
“I can’t imagine how incredibly upsetting that must have been for our passengers, who were so concerned about loved ones left behind,” Tania said.
Sayid’s hopeful demeanor in the face of such chaos and trauma inspired Tania and her crew mates.
“We always try to anticipate passengers’ needs,” said Tania, who has been working for FSI servicing Atlas Air for more than five years. “But this was a different kind of flight. Sayid and the other passengers will remember every facet of that day. Whatever we do (during these evacuation flights), for better or for worse, it will be remembered 30 years from now.”
Tania and Atlas crew members on that flight took that notion to heart and worked hard to ensure that Sayid’s memories of the momentous flight would be as warm as possible.
FSI Flight Attendant Pia Marchant gave him a tote bag, into which he happily transferred his meager possessions. In return, he gave Pia a small stuffed white lion that he had been carrying.
Captain Gabriel Villamizar gave Sayid a tour of the cockpit and invited him to sit in the left seat. They spent some time chatting and shared a fist bump after the flight.
As she talked with Sayid, Tania learned that he would be turning 15 in September.
“My wish for his birthday is that he somehow will be reunited with his loved ones.”
**Name changed to preserve this child’s safety and anonymity.
Significant Step in Completing Merger of Atlas Air and Southern Air
PURCHASE, N.Y., September 10, 2021 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced that its Atlas Air, Inc. subsidiary has completed a new joint collective bargaining agreement (JCBA) for its Atlas Air and Southern Air pilots, who are represented by the International Brotherhood of Teamsters (IBT).
The five-year JCBA is one of the last major steps in completing Atlas Air’s merger with Southern Air, which it acquired in 2016.
The JCBA was achieved through a contractual merger process, which included negotiations followed by binding arbitration to resolve remaining open items. Under this new long-term agreement, Atlas Air and Southern Air pilots will receive higher pay and enhanced benefits as part of the overall competitive package.
“At Atlas, our people are our greatest strength, and our more than 2,500 pilots deserve this new agreement that provides them with significantly improved pay and benefits,” said John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide.
“Our pilots are the best in the business and fly an unrivaled fleet across our global network to serve our customers,” said Mr. Dietrich. “With this new agreement in place, we look forward to continuing to grow our company and creating more opportunities for pilots to grow their careers.”
“Our company has long prepared for this investment in our pilots and has factored these new terms and conditions into customer contract negotiations,” Mr. Dietrich added. “We continue to see strong demand for our aircraft and services as we expand and extend customer agreements. We are well-positioned to leverage the diversity of our business model to capitalize on very favorable global airfreight market conditions.”
Pay increases will be effective in October, with the remaining terms and conditions to be implemented in the coming months in collaboration with the union. Once the new terms, conditions and timing of implementation are fully assessed, the company will provide an updated outlook.
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., Southern Air Holdings, 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.
* * *
In the air and on the ground, the Atlas team remains focused on supporting the humanitarian relief efforts out of Afghanistan while delivering an abundance of kindness and compassion.
Captain Kelley, First Officer Evangelista and First Officer Chatha, along with the crew who flew evacuees out of Afghanistan and into Dulles International Airport, on September 2nd.
From answering the call to duty in the middle of the night to making passengers feel safe and protected, this team has gone above and beyond to make a difference in the lives of thousands of Afghan evacuees.
That’s no surprise to Scot Ridgway, Staff Vice President, Flight Operations. “In tough times like these, our team continually rises to the challenge. When we first made the crew aware of these flights, it was no surprise that so many volunteered and bid for these flights.”
Atlas Air has helped evacuate more than 7,800 individuals. We have flown 22 roundtrip missions using three of our 767 aircraft and three of our 747 aircraft.
Riley O’Connor, Senior PSR; Mike Reingold, PSR Supervisor and Bricker Martin, Director, Defense & Government Programs with boxes of crayons for young passengers.
Captain Sean Kelley, who recently retired from the United States Air Force, brought 370 passengers into Dulles International Airport (IAD) on September 2nd and shared, “I feel terrible that these folks have had to uproot, separate from their families and loved ones, and now have to begin a new, major evolution in their lives through no fault of their own. Yet we were very happy and very honored to deliver them to safety, where their immediate needs will be met.”
He continued, “though there are cultural differences between us, the commonalities of our love of family, the need for safety, and the desire to better ourselves is what eliminates barriers and makes us universally the same. I think it’s amazing for Atlas Air to be part of it and I’m proud to work here.”
The magnitude of this particular flight and the part First Officer David Evangelista played (along with Captain Kelley and First Officer Usman Chatha) was perhaps clearest at the very end of the flight, when he witnessed children smiling and hugging each other in relief.
“This was my first mission and I was so excited to be a part of it. As an immigrant myself (from Brazil), I know it’s overwhelming to leave everything you know and come to a new country. I served in the U.S. Navy and I feel like I served again today, like I did something for the greater good – bringing them to the United States, a great nation and land of opportunity. I love this country and I love Atlas.”
Children onboard the aircraft.
Atlas Air 767 First Officer Ryan Collins, who participated in an earlier mission was equally moved and shared, “Listening to the stories of the refugees who I had the privilege of flying was heart wrenching and changed my life. It was an amazing experience.”
Kellie Vaughn, an FSI Flight Attendant, also shared her gratitude for the experience. As she prepared to leave for her third mission, she said, “When I get on the plane, it is my duty to take care of others. My job is –as are these missions – very rewarding.”
Similar sentiments were prevalent out on the tarmac and behind the scenes across the Company.
“This operation has included the most memorable and meaningful moments of my career,” said Riley O’Connor, Senior Passenger Services Representative (PSR), who has been on the ground at IAD since the official activation of the Civil Reserve Activation Fleet (CRAF) on August 22nd. “It’s been a humbling experience and incredibly gratifying to help these people start a new life. I know I will be reflecting on all of this for years to come.”
Maridalia Sangiovanny, Senior Crew Planner at Atlas Air Worldwide headquarters agreed and added, “It’s always a great feeling to help those in need. Atlas has always played a big part in moments such as these; I am very proud of the Company as a whole and especially the partnership between my team – Crew Planning – and Crew Scheduling!”
As the crisis in Afghanistan continues to unfold, our Atlas team has stepped up to serve without hesitation, to care for the world we carry. At the time of publication, we have carried over 3,500 passengers on 12 flights.
As the crisis in Afghanistan continues to unfold, our Atlas team has stepped up to serve without hesitation, to care for the world we carry.
For weeks now, our colleagues have been working relentlessly in support of Operation Allies Refuge; Atlas Air has been operating relocation flights for the repatriation of U.S. citizens and Afghan nationals and their families eligible for U.S. Special Immigrant Visas (SIVs).
That is in addition to our normal contract work with AMC (Air Mobility Command, a major command of the U.S. Air Force) to move cargo and carry troops all over the world.
It has been and continues to be, according to John Dietrich, President and Chief Executive Officer, “an impressive showing of logistical expertise and a commitment to coming together as a team in support of a most important and meaningful mission. The news and images from Afghanistan are heartbreaking. We are so proud of and humbled by the role our colleagues are playing in safely carrying evacuees to the United States. They are all heroes.”
“These missions are so important yet so incredibly difficult,” said Jeff Carlson, Senior Vice President, Flight Operations. “Those who are on the front line are taking care of passengers who are understandably frightened and unfamiliar with air travel. They are working through unusually taxing circumstances as well as incredibly long days on the aircraft (flight hours plus hours on the ground during the security vetting of passenger manifests). Despite all of this, the professionalism and sensitivity of our crews has not wavered for one moment.”
Atlas Air N640GT arrives in IAD with 236 passengers on August 25th.
Bricker Martin, Director, Defense & Government Programs, arrived at Dulles International Airport (IAD) Wednesday afternoon and has seen the team in action. “Our team on the ground and in the air – it’s clear they want to be here. They are all doing whatever they can, regardless of the hour or how long it takes, to treat our passengers well and make them comfortable.”
“Prior to the official activation of CRAF on Sunday, August 22nd, Atlas Air stood at the ready to support the Department of Defense’s need for evacuating personnel and voluntarily committed to a number of missions before the government called upon us,” said Bill Grobasky, Director, Passenger Charter Sales. “In addition to the three 747s that were called up by CRAF (click here for the Company’s press release), we have been providing 767 passenger aircraft in support of the evacuations and other missions.”
The effort has been herculean from the start.
Atlas Air N464MC is one of the 747s called up for CRAF.
“Atlas didn’t have a station at Dulles prior to this operation,” said Mike Reingold, Passenger Service Supervisor. “Between ground ops and flight ops, we built an entire station in 12 hours to prepare for the first waves of evacuees from Afghanistan. It was hard work but it proves that when we are needed in a heartbeat, we can deliver.”
And, the team hasn’t stopped delivering. Mobilizing and coordinating these flights has been, and continues to be, a massive undertaking requiring round-the-clock support from dedicated, compassionate colleagues around the world and across the organization – on the ground, in the air and behind the scenes.
Crew Planning and Crew Scheduling has been focused on soliciting crew volunteers, adjusting to a high level of schedule volatility related to these missions, and backfilling openings created by delays and legalities, all the while continuing to support and crew our routine operations.
IAD Ground Ops team pulls amenity kits together for passengers. Pictured left to right are: Mike Reingold, PSR Supervisor; Riley O’Connor, Senior PSR; Ashwin Byju, PSR and Daryl Javier, Lead PSR.
Adding to the challenge is that the bulk of our team’s effort is anything but routine. “We all understand protocols for the charter flights we operate but we have never before experienced the nuances of an evacuation relief flight,” said Nardia Gooden, Catering Commissary Lead.
“It’s been a lot, but we have all come together to learn and develop a process that meets the cultural and religious requirements of our passengers – from removing certain foods on the aircraft, to developing signs in Farsi that help clarify aircraft procedures for those passengers who haven’t flown before, to keeping a sensitive eye and anticipating what our passengers might need considering many left their country with only the clothes on their back.”
767 Crew in IAD prepares to fly to RMS to position into place for a relief mission. Pictured left to right (front row): FO Thomas Fuller, FSI FA Zee Tariq, FO Brady Dixon, FSI FA Vicky Hood, FSI FA Elliot Balin, FSI FA Michelle Hunter, FSI FA Stephanie Hernandez, FSI FA Elnaz Iraj, CA CK Gabriel Villamizar. Back Row: PSR Supervisor Mike Reingold, PAA Joey Salyers, FSI FA Dino Johnson Jr.
That means sending colleagues – PSRs and ground ops staff – to Costco or Walmart to purchase diapers, bottles, formula, and personal hygiene products for the assembly of amenity kits.
“From an operations standpoint, everyone is doing whatever needs to be done in order to execute these missions,” said John Nardone, Senior Director, Military Charter Program.
“This has been an extremely complicated effort due to volume, rerouting and schedule changes coming in last minute. Mindy Bulone, Operations Specialist, along with our Ground Operations staff and the Operations Managers in the GCC have all been fantastic, working so hard to coordinate the schedules, adjust for changes and communicate them out to AMC. The dedication they have shown has been extraordinary.”
Purchase, N.Y. and Incheon, South Korea, August 31, 2021 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) announced today that its wholly-owned subsidiary Atlas Air, Inc. has signed a Memorandum of Agreement to enter into a joint venture with Sharp Technics K to develop a dedicated maintenance, repair and overhaul (MRO) facility at Incheon International Airport (ICN) in South Korea. The maintenance facility is expected to open in 2025.
Sharp Technics K President Soon-Suk Paik said his company is honored to partner with Atlas Air on this custom freighter aircraft maintenance facility. “This facility at Incheon Airport will be able to accommodate multiple wide-body aircraft at the same time, enabling the facility to contribute to the growth of airfreight and e-commerce on a global scale as ICN expands its role in the MRO aviation industry,” Mr. Paik said.
John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide, said he welcomes Sharp Technics K’s approach to finding the right solution for Atlas Air’s growing wide-body maintenance needs in the Asia-Pacific region.
“Incheon International Airport is a key airport for us in our global network as we serve customers around the world,” Mr. Dietrich said. “Our partnership with Sharp Technics K will enable us to further streamline maintenance planning with their integrated approach to servicing our fleet.”
Kyung-Wook Kim, President of Incheon International Airport Corporation said: “We look forward to supporting Atlas Air’s MRO needs with this new facility as ICN focuses on cultivating the air cargo industry. This development will serve as a cornerstone for new growth as we strengthen Korea’s competitive position in serving the worldwide aviation MRO industry.”
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., Southern Air Holdings, 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 Sharp Technics K:
Sharp Technics K is a dedicated FAA Certified MRO company located at Incheon International Airport that provides heavy maintenance services for wide-body aircraft.
Its parent company, Sharp Aviation K, is the largest independent aviation and airport service provider in Korea. With more than 50 years of experience, it is committed to delivering the best one-stop service to its clients with operations in Korea.
Please visit the company’s home page, www.sharp.co.kr, for more information.
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PURCHASE, N.Y., August 23, 2021 – Atlas Air, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), is proud of its ongoing support of the U.S. military’s Afghanistan evacuation efforts. As part of the activation of the Civil Reserve Air Fleet (CRAF), the Company is carrying evacuees to safety.
“For more than 20 years, Atlas has supported the U.S. military and is the largest supplier of its outsourced airlift. We are proud to provide this essential passenger service in the region at this critical time,” said John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide. “As the Company that cares for the world we carry, our team feels a tremendous sense of responsibility in serving the needs of the U.S. military.”
Atlas Air is providing three 747 passenger aircraft to support the CRAF activation and also continues to provide additional 767 passenger aircraft in support of these evacuations and other missions.
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., Southern Air Holdings, 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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The Department of Defense has activated the Civil Reserve Air Fleet (CRAF) to call upon Atlas Air and other U.S. airlines to support the evacuation of U.S. citizens and refugees from Afghanistan.
We will be flying passenger aircraft to carry the evacuees safely to the U.S. and will be standing by should additional capacity be needed.
As the largest supplier of airlift to the U.S. military, we are proud to provide this essential passenger service in the region at this critical time.
Atlas is a company that cares for the world we carry, and our team feels a tremendous sense of responsibility in serving the needs of the U.S. military and our nation.
Purchase, N.Y., August 10, 2021 – Titan Aviation Holdings, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), announced today that Eamonn Forbes has been appointed Senior Vice President and Chief Commercial Officer of Titan Asset Management Ireland Limited, effective August 23, 2021.
Mr. Forbes will lead all sales and marketing activities for Titan and he will report directly to Michael Steen, President and Chief Executive Officer of Titan Aviation Holdings and Chief Commercial Officer of Atlas Air Worldwide. Mr. Forbes will direct Titan’s global sales team and will be based in Dublin, Ireland.
“We are delighted that Eamonn will be joining our team as we continue to expand Titan’s portfolio and global footprint,” said Mr. Steen. “With his strong experience and track record in the aviation leasing industry, Eamonn is perfectly positioned to lead our global sales and marketing activities, as we further leverage our strategic joint venture with Bain Capital Credit.”
Mr. Forbes joins Titan with over 15 years of aviation leasing, legal, and finance experience. Most recently, Mr. Forbes served as Chief Commercial Officer of FPG Amentum. Previously, he has held senior positions at SMBC Aviation Capital and Goshawk.
“I am thrilled to join the Titan team at this important stage of growth and development,” said Mr. Forbes. “Titan is widely recognized as an industry leader, with a superior customer portfolio, an unparalleled depth of freighter experience and a unique position within the marketplace. I look forward to working with the team to leverage the strength of the Atlas Air Worldwide companies, while further building the strategic joint venture with Bain Capital Credit.”
Mr. Forbes began his career as a lawyer and holds a Bachelor of Civil Law Degree (BCL) from the University College Cork and a Master’s in Business Administration from the University College Dublin. In addition, he serves on the advisory board of LIFT, a non-profit organization promoting values leadership.
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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 with 30 aircraft and a book value of over $1.4 billion.
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, 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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Company’s Second Report Features ESG Priorities and
Highlights Progress Made in 2020
Purchase, N.Y., August 9, 2021 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced the release of its second environmental, social and governance (ESG) report.
Featuring the theme “Caring for the World We Carry,” the 2020 ESG Report shares milestones in the Company’s ongoing sustainability journey. The report highlights progress on key initiatives and programs that support the Company’s four overarching ESG priorities: Responsible Business Growth; Environmental Stewardship; Career, Culture & Equity for Our People; and Social Impact & Community Engagement.
“We are dedicated to advancing our environmental, social and governance commitments and helping to lead our industry forward,” said John W. Dietrich, President and Chief Executive Officer of Atlas Air Worldwide. “Our long-standing commitment to be a responsible corporate citizen is ingrained in our company culture. This commitment has served as the foundation for how we have navigated the pandemic in 2020 and continue to do so today. We appreciate the efforts of our extraordinary team around the world as we continue to make progress on our ESG priorities.”
Key highlights from our 2020 performance include:
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., Southern Air Holdings, 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., August 5, 2021 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced second-quarter 2021 net income of $107.1 million, or $3.53 per diluted share, compared with net income of $78.9 million, or $3.01 per diluted share, in the second quarter of 2020.
On an adjusted basis, EBITDA totaled $243.7 million in the second quarter this year compared with $247.0 million in the second quarter of 2020. Adjusted net income in the second quarter of 2021 totaled $121.8 million, or $4.10 per diluted share, compared with $123.2 million, or $4.71 per diluted share, in the second quarter of 2020.
Second-quarter 2021 Airline Operations segment performance improved significantly compared with the prior year that included exceptionally high commercial cargo Charter yields in April and May 2020.
“Our strong performance continued in the second quarter, with revenue and earnings exceeding our already high expectations,” said Atlas Air Worldwide President and Chief Executive Officer John W. Dietrich. “These positive results were driven by our team executing our strategy, increasing the utilization of our aircraft and delivering safe, high-quality service for our customers.
“Our performance continued to benefit from operating the four 747 freighters and one 777 freighter we reintroduced to our fleet throughout 2020. This capacity, along with a tremendous team effort, contributed to our ability to enter into and extend long-term agreements with strategic customers, as well as to capitalize on lucrative short-term opportunities in the strong global airfreight market.
“Economic and supply chain conditions remain favorable for air cargo and our dedicated freighters. These include global airfreight volumes exceeding pre-pandemic levels, an acceleration of e-commerce and express growth, low inventory levels, positive Purchasing Managers’ Index readings, as well as congestion, long lead times and elevated pricing for ocean freight. Demand also continues to exceed available supply, particularly on long-haul international routes, as belly capacity on a significant number of widebody passenger aircraft remains out of the market.”
Mr. Dietrich added: “I would like to thank all our employees for safely supporting our customers and the global supply chain during this time of continued need. While the operating environment remains challenging due to the ongoing pandemic, the market dynamics we are seeing in the third quarter remain strong.
“As a result, we expect revenue of nearly $1.0 billion and adjusted EBITDA of about $250 million from flying more than 90,000 block hours in the third quarter of 2021. In addition, we anticipate adjusted net income to grow approximately 50% compared with adjusted net income of $82.7 million in the third quarter of 2020.*
“Given ongoing economic and market-related uncertainties, including COVID-19 and the Delta variant, as well as travel restrictions, low international passenger travel and other factors, we are providing a third-quarter outlook, but not issuing a further outlook at this time.”
Second-Quarter Results
Volumes in the second quarter of 2021 increased to 93,190 block hours compared with 84,966 in the second quarter of 2020, with revenue growing to $990.4 million versus $825.3 million in the prior-year period.
Higher Airline Operations revenue primarily reflected an increase in flying and a higher average rate per block hour. Block-hour volume growth during the period was driven by our ability to increase aircraft utilization as demand for our commercial cargo Charter and CMI services increased. This demand reflected growth in airfreight volumes from pre-pandemic levels, the ongoing reduction of available cargo capacity in the market and the continued disruption of global supply chains due to the pandemic. In addition, segment revenue benefited from the operation of four 747-400 freighters we reactivated throughout 2020 and a 777-200 freighter that was previously in our Dry Leasing business, as well as improved AMC passenger Charter flying compared with the prior-year period. The increase in the average rate per block hour was primarily due to higher fuel costs, partially offset by lower yields (excluding fuel) compared with the higher market yields during the early months of the COVID-19 pandemic, specifically in April and May 2020.
Higher Airline Operations segment contribution in the second 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 lower yields (excluding fuel) as described above.
In Dry Leasing, segment revenue in the second quarter of 2021 was relatively unchanged compared with the prior-year period. Higher segment contribution was primarily due to lower interest expense related to the scheduled repayment of debt.
Higher unallocated income and expenses, net, during the quarter primarily reflected a $26.9 million reduction in refunds of aircraft rent paid in previous years, a $20.2 million reduction in CARES Act grant income (which was excluded from our adjusted results) and increased professional fees.
Reported earnings in the second quarter of 2021 also included an effective income tax rate of 23.5%. On an adjusted basis, our results reflected an effective income tax rate of 22.4%.
Cash
At June 30, 2021, our cash, including cash equivalents and restricted cash, totaled $760.5 million compared with $856.3 million at December 31, 2020.
The change in position resulted from cash used for investing and financing activities, partially offset by cash provided by operating activities.
Net cash used for investing activities during the first six months of 2021 primarily related to capital expenditures and payments for flight equipment and modifications, including pre-delivery payments for 747-8F aircraft, spare engines, GEnx engine overhauls and 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.
Half-Year Results
Reported results for the six months ended June 30, 2021 reflected net income of $197.0 million, or $6.59 per diluted share. Results for the first half of 2021 compared with net income of $102.3 million, or $3.92 per diluted share, which included an unrealized loss on financial instruments of $29.7 million, for the six months ended June 30, 2020.
On an adjusted basis, EBITDA totaled $425.0 million in the first half of 2021 compared with $368.2 million in the first half of 2020. First-half 2021 adjusted net income totaled $194.0 million, or $6.55 per diluted share, compared with $153.1 million, or $5.87 per diluted share, in the first half of 2020.
Fleet Management
We actively manage our fleet to profitably serve our customers with modern, efficient aircraft. Between May and August 2021, we acquired three of our existing 747-400 freighters that were previously on lease to us. In May and June 2021, we also reached agreement with lessors to purchase five of our other 747-400 freighters at the end of their existing lease terms, which range from March to December 2022. Acquiring these eight freighters underscores our confidence in these assets and the global airfreight market. Keeping these aircraft in our fleet ensures committed capacity to our customers and strong returns for Atlas in the years ahead.
Labor
We have moved closer to completing a new Joint Collective Bargaining Agreement (JCBA) with our Atlas Air and Southern Air pilots. The union has provided the company with the integrated seniority list, the scheduled arbitration hearings concluded in April and both parties submitted post-hearing briefs in early June. We now expect to receive the arbitrator’s binding decision late in the third quarter.
Outlook*
We expect market conditions to remain favorable in the third quarter and for our initiatives to continue driving strong performance. We are also closely monitoring developments related to COVID-19 and the Delta variant, and any associated impact on global airfreight, operations, demand and economic activity.
For the third quarter of 2021, we expect revenue of nearly $1.0 billion and adjusted EBITDA of about $250 million from flying more than 90,000 block hours. In addition, we expect third-quarter 2021 adjusted net income to grow approximately 50% compared with adjusted net income of $82.7 million in the third quarter of 2020.*
This outlook reflects the contribution of long-term customer agreements with favorable rates and guaranteed levels of flying; high levels of aircraft utilization driven by strong customer demand; and commercial cargo Charter yields to remain above typical seasonal levels.
We also expect third-quarter results to continue to be impacted by ongoing pandemic-related expenses, including pilot premium pay and operational costs for providing a safe working environment for our employees.
For the full year in 2021, we expect aircraft maintenance expense to be lower than 2020, and depreciation and amortization to total about $275 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are projected to total approximately $105 to $115 million, mainly for parts and components for our fleet.
Given ongoing economic and market-related uncertainties, including COVID-19 and the Delta variant, as well as travel restrictions, low international passenger travel and other factors, we are providing a third-quarter outlook, but not issuing a further outlook at this time.
Other than with regard to revenue, we provide guidance only on an adjusted basis because we are unable to predict, with reasonable certainty and without unreasonable effort, the effects of 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 second-quarter 2021 financial and operating results at 11:00 a.m. Eastern Time on Thursday, August 5, 2021.
Interested parties may listen to the call live at Atlas Air Worldwide’s Investor site or at https://edge.media-server.com/mmc/p/yb85r7v2.
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 August 12 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 8974504#.
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 (loss); 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., Southern Air Holdings, 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,” “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; our ability to coordinate with Amazon to accept newly converted aircraft; 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 foreign government trade policies; economic conditions; the impact of geographical events or health epidemics such as the COVID-19 pandemic; 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; the outcome of pending negotiations and arbitration with our pilots’ union; 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; weather conditions; 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 2021 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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Atlas Air supports the bipartisan efforts to build and strengthen America’s infrastructure, including the nation’s aviation system and the surface transportation networks that support and facilitate air transportation.
The government and industry must come together to address aging infrastructure and to invest in new technologies and capabilities such as NextGen, which can improve aviation efficiencies, reduce flight delays, and lower carbon emissions.
We applaud the bipartisan efforts to strengthen our infrastructure, and we remain committed to ensuring that America’s air cargo carriers continue to lead the industry around the world.
Vaughn College of Aeronautic Engineering, Aviation and Technology provides a distinct education to a diverse population of students in an environment that cultivates personal growth and leadership to create lifelong learners who make significant contributions to aviation industry. Atlas is a proud supporter of Vaughn and its students, many of whom in their successful post-collegiate careers become our colleagues, customers and partners.
As part of our support, this year Atlas sponsored the inaugural Vaughn Open Golf Outing fundraiser. Proceeds will benefit the newly established George A. Vaughn, Junior Family Scholarship, helping make the dream of an education possible for aspiring Vaughn College students. It is expected that this annual golf outing will become one of the College’s most important fundraising events of the year, along with the annual Vaughn Gala.
“Vaughn College has a long history of educating and preparing students in all aspects of aviation – combining classroom learning with hands-on, real-life experience,” said Adam Kokas, Atlas Executive Vice President and General Counsel. “Atlas is proud to support their endeavors to build the talent pipeline of the future.”
Players had the opportunity to meet and speak with current Vaughn students, who were stationed at various holes along the course. “Over the years I have worked with several colleagues who are Vaughn College alumni. It was inspiring to meet current students and to imagine what their success stories might be,” said George Kopcsay, Atlas Vice President and Associate General Counsel who joined Adam on the course that day.
Atlas Staff Vice President Procurement, Kevin Martin added, “Supporting Vaughn equals supporting the industry. Our involvement can help foster students’ interest in aviation as a career path at an early age. I enjoyed speaking to the students about the ins and outs of aviation and the complexity and dynamics that contribute to every single flight. In my opinion, there aren’t many industries that are as dynamic, interesting and exciting as aviation.”
“I was honored to attend the 2021 Vaughn Open in support of the George A. Vaughn Family Scholarship,” said Keinan Meginniss, Atlas Contracts and Compensation Attorney. “Atlas’s continued commitment to Vaughn College, and specifically, contributions to financial aid for its students, is something in which all Atlas team members should take pride.”
