Cost cutting helps Atlas Air quadruple Q3 profits to US$32 million

COST-CUTTING and rising air cargo demand pushed US-based Atlas Air Worldwide Holdings Inc to more than quadruple its third-quarter earnings, reported the New York's Lower Hudson Journal News.

Atlas, the company with the largest fleet of 747 freighters, generates most revenue from scheduled service on flights between the Americas, Asia and Europe, carrying for United Parcel Service and DHL among others.

Atlas, which moves pharmaceuticals, electronics and other fast-to-market products, announced that it had earned US$32.4 million in the quarter ending in September against the US$7.08 million earned last year in the same period.

A permanent income tax benefit of $15.4 million is included in the results. Revenues were up to $395 million from $361 million. The company is increasing its profitability while reducing its fleet and achieving higher returns from planes it retains.

Atlas said its planes spent 4.1 per cent more time in the air during this year's quarter compared to last year's. Operating income per plane totalled $956,000, up 19.2 per cent on last year.

Atlas CEO William Flynn said the company has put in place a programme to save on maintenance, fuel, supplies and other costs that saved $15 million during the quarter.

"They're continuing to do a good job on cost cutting," said Robert Labick, an analyst who follows Atlas Air for CJS Securities Inc in White Plains, New York. "I think they're a little ahead of schedule."

Mr Labick had predicted the company would have earnings before interest, taxes, depreciation and amortization (EBITDA) of $48 million. The company reported $47.55 million.