Atlas Air reports a 20% increase in net income to $33.9 million during the third quarter compared to a year earlier.
The New York-based aircraft outsourcing and aviation operating services company reports a $33.4 million adjusted net income, which is up 10% versus the third quarter 2011.
Revenue was up 12.8% to $409.3 million and operating expenses were up 8.6% to $347 million.
"Our third-quarter results highlight the transformation and diversification of our business model and the essential elements of our growth story," says William Flynn, president and chief executive of Atlas. "We have built a resilient company that is delivering increasing earnings, improved margins and growing free cash flow in a challenging business environment."
He attributes the growth in Atlas' revenue and profit to its new Boeing 747-8F aircraft and the diversification of its business, including into military transport contracts that began in 2011, during an earnings call today.
However, Flynn says that Atlas has lowered its guidance for the full year despite continuing strong demand. Net income is anticipated to increase by 13% compared to 2011, which is down from 24% at the end of June.
Block hours are expected to increase 12% to about 153,000 in 2012, which is down about 7,000 hours from an expected 17% increase at the end of the second quarter.
Flynn attributes the lower guidance to underperformance in the airfreight market and a softer-than-expected peak season. He adds that low inventories and the launch of new consumer technology goods, including new Apple products, will "underpin demand" for air freight.
Year-to-date net income was up 24% to $77.5 million at the end of September while on an adjusted basis it was up 13% to $78.3 million. Revenue was up 18% to $1.19 billion.