Coronavirus Update: Our team is here to help our clients and readers navigate these difficult times. Visit our Resources page now »

Skip to Main Content

About Atlas Air, Inc.

Atlas Air Worldwide Holdings (AAWW) is a global leader in aviation services. It leases cargo planes to customers, mainly airlines, under long-term ACMI (aircraft, crew, maintenance, and insurance) contracts. AAWW operates the world's largest fleet of Boeing 747 freighters and offers its customers a broad array of 747, 777, 767, 757, and 737 aircraft for domestic, regional, and international cargo and passenger applications. It also offers dry leasing (aircraft and engines only) via its Titan division. In addition, affiliates Atlas Air and 51% owned Polar Air Cargo provide charter services to charter brokers, freight forwarders, airlines, and the US military.

Operations

AAWW is the parent company of Atlas Air, Southern Air Holdings, and Titan Aviation Holdings. It is also the majority shareholder of Polar Air Cargo Worldwide. Its business is divided across three operating segments: ACMI (aircraft, crew, maintenance, and insurance), charter, and dry leasing. AAWS's fleet consists of about 125 aircraft.

Its charter business generates more than 45% of the company's revenue and primarily provides full planeload cargo and passenger aircraft to customers, including the AMC (US Military Air Mobility Command), brokers, freight forwarders, direct shippers, airlines, sports teams and fans, and private charter customers.

The ACMI segment generates around 45% of the company's revenue, and provides cargo aircraft outsourcing services to customers on an ACMI and CMI basis, in exchange for guaranteed minimum revenues at predetermined levels of operation for defined periods of time.

The dry leasing business (over 5%) offers aircraft and engines to customers, including some CMI customers, for a fixed monthly payment (a "dry lease). This business is primarily operated by Titan, which is a cargo aircraft dry lessor, but also owns and manages aviation assets such as passenger narrow-body aircraft, engines, and related equipment.

Other revenue includes administrative and management support services and flight simulator training. These activities generate the remainder of sales.

Geographic Reach

New York-based AAWW provides its services through operations globally. The company serves about 400 destinations in about 90 countries.

Sales and Marketing

Atlas markets directly to other airlines and logistics companies through regional sales offices in various regions, including Asia Pacific, Europe, Africa, the Middle East, and the Americas. It markets its ACMI, CMI and dry leasing services to express delivery providers, e-commerce retailers, airlines, and freight forwarders. It also markets cargo and passenger charter services to charter brokers, the US military, freight forwarders, direct shippers, and airlines.

Financial Performance

AAWW has enjoyed unprecedented revenue growth over the last few years, with revenues peaking at a record-setting in more than $2.7 billion in 2019.

Sales in 2019 were up 2% over $2.7 billion in 2018. ACMI revenue increased $55.1 million, or 5%, primarily due to increased flying, partially offset by a decrease in Revenue per Block Hour. Charter revenue decreased $7.6 million, or 1%, primarily due to a decrease in Revenue per Block Hour, partially offset by an increase in flying. Dry Leasing revenue increased $32.3 million, or 19.2%, primarily due to $22.3 million of revenue from maintenance payments related to the scheduled return of a 777-200 freighter aircraft and the placement of incremental aircraft.

The company's net earnings fell by $563.7 million resulting into a net loss of $293.1 million in 2019 from a net income of $270.6 million in 2018. The fall was due to the $806 million increase on their operating expenses with only $61 million increase on their operating income.

Cash at the end of fiscal 2019 was $113.4 million, a decrease of $119.3 million from the prior year. Cash from operations contributed $300.3 million to the coffers, while investing activities used $285.8 million, mainly for payments for flight equipment and modifications. Financing activities used $133.9 million primarily from the proceeds from the issuance of debt.

Strategy

The company's strategy includes the following: focus on securing long-term customer contracts; aggressively manage their fleet with a focus on leading-edge-aircraft; drive significant and ongoing productivity improvements; selectively pursue and evaluate future acquisitions and alliances; and appropriately managing capital allocation and delivering value to shareholders.

Atlas Air will continue to focus on securing long-term contracts with fast-growing customers, including those in express, e-commerce and the fastest-growing regional markets, which provide us with relatively stable revenue streams and margins. In addition, these agreements limit our direct exposure to fuel and other costs and mitigate the risk of fluctuations in both Yield and demand in the airfreight business, while also improving the overall utilization of their fleet.

The company continue to actively manage our fleet of leading-edge wide-body freighter aircraft to meet customer demands. Their 747-8F and 777-200LRF freighter aircraft are primarily utilized in their ACMI business, while their 747-400s are utilized in our ACMI and Charter business. Atlas Air aggressively manage their fleet to ensure that they provide their customers with the most efficient aircraft to meet their needs.

Atlas Air Dry Leasing business is primarily focused on a portfolio of modern, efficient 777-200LRF aircraft and their fleet of 767-300 freighter aircraft for regional and domestic applications. They will continue to explore opportunities to invest in additional aircraft.

Company Background

Atlas Air was founded in 1992 by Michael Chowdry, a pilot and aviation consultant who started the company by leasing aircraft to other airlines on an aircraft, crew, maintenance, and insurance (ACMI) contract basis. The company leased cargo space, typically for multiyear contracts providing 100% use of a plane and allowing for a few cancellations of hours.

Atlas Air went public in 1995 and doubled the size of its operations by 1996. The company continued to add Boeing aircraft to its fleet and by 2000 ranked third among cargo carriers, after FedEx and UPS. The same year it consolidated its headquarters from Golden, CO and JFK to Purchase, NY.

Atlas Air, Inc.

2000 Westchester Ave # 200
Purchase, NY 10577-2543
Phone: 1 (914) 701-8000

Firm Stats

Employer Type: Privately Owned
Vice President Information Technology Group: Bernard Jones
Vice President, IT: Richard Ross
Vice President Security: Gary Wade
Employees (This Location): 200
Employees (All Locations): 1,200

Major Office Locations

Purchase, NY

Other Locations

Anchorage, AK
Huntsville, AL
Los Angeles, CA
Washington, DC
New Castle, DE
Miami, FL
Woodstock, GA
North Charleston, SC
Humble, TX
Lima, Peru