Atlas Air Worldwide Holdings recorded $48.5 million in operating profit in the second quarter, down from $56.1 million in the same three months of 2012.
The parent company of Atlas Air, Polar Air Cargo and Titan Aviation Leasing recorded $20.1 million in net profit, down from $30.9 million in the second quarter of 2012. When adjusted for fleet retirement costs, gains from disposing aircraft and losses on early extinguishment of debt, this income totalled $20.4 million.
Atlas Air Worldwide reported operating revenues of $403.6 million in the quarter, down from $424.7 million in the same three months of 2012.
The airline group saw an increase in its aircraft, crews, maintenance and insurance (ACMI) agreements with companies for air freight operations, with revenues from that segment totalling nearly $182 million compared to $160.4 million in the second quarter of 2012.
Contributing to these improved earnings were higher block hour rates and lower maintenance expenses for its Boeing 747-8 freighters. Within the past year, Atlas Air Worldwide has added five 747-8F aircraft.
The growth in this segment has offset some of the decline in demand that Atlas has seen for its military charter business.
"Earnings in the second quarter of 2013 were driven by the strength of our ACMI operations, especially our new 747-8 freighters," says William Flynn, Atlas Air Worldwide's president and chief executive officer.