- 4Q Net Loss of $410.2 Million Reflects Noncash Special Charge of $485.2 Million
- 4Q Adjusted EBITDA Totals $204.7 Million, Adjusted Net Income $98.2 million
- 2019 Net Loss of $293.1 Million Reflects Noncash Special Charge of $503.1 Million
- 2019 Adjusted EBITDA Totals $504.8 Million, Adjusted Net Income $139.6 Million
- Solid Fourth-Quarter Peak Season
- Expects 2020 Earnings Growth
PURCHASE, N.Y., Feb. 20, 2020 (GLOBE NEWSWIRE) -- Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced fourth-quarter and full-year 2019 results that reflected a peak season with a pickup in customer demand and improved yields compared with the middle of the year.
In addition, the results reflected an impairment charge as well as actions taken to improve operating efficiencies and align resources with the company’s strategic priorities. The impairment resulted in lower aircraft rent and depreciation expense, which added to already higher than anticipated fourth-quarter and full-year 2019 adjusted results. The impact of lower aircraft rent and depreciation expense, coupled with actions to improve our business, are expected to benefit earnings in 2020 and beyond.
Reported results in the fourth quarter and full year of 2019 primarily reflected a noncash special charge associated with the write-down of the company’s 747-400 freighter fleet due to global airfreight and macroeconomic conditions resulting in lower 747-400 commercial cargo yields and utilization, as well as the disposition of certain nonessential Dry Leasing aircraft and engines.
“Our fourth-quarter reported results were certainly impacted by the one-time impairment. However, our solid adjusted results were driven by our team coming together to deliver the high-quality service that our customers appreciate,” said President and Chief Executive Officer John Dietrich.
As expected, reported and adjusted fourth-quarter results benefited from a refund of excess aircraft rent paid in previous years, lower heavy maintenance expense and aircraft ownership costs, an increase in military passenger and cargo flying, and the peak-season flying we do for express customers. Results were also impacted by the global airfreight environment and macroeconomic conditions, which reflected the effects of tariffs, global trade tensions and geopolitical unrest in certain countries in South America, and certain labor-related service disruptions.
Mr. Dietrich continued: “The airfreight industry, like most others, is experiencing the impacts of the unfortunate coronavirus outbreak. The effects are yet to be fully determined, and therefore our visibility into the full year ahead is evolving.
“In these unprecedented circumstances, we are playing a key role in our customers’ operating networks as they navigate this challenging time. We are also currently accommodating special charter demand, and we are well-prepared for the anticipated surge of volumes once manufacturing resumes in full force.”
He concluded: “Our focus remains on express, e-commerce, the U.S. military and faster-growing markets, where the demand for our aircraft and services is solid. As the global supply chain rebalances, we will continue to leverage our significant commercial charter business to capitalize on customer demand. Looking ahead, we anticipate that our financial performance in 2020 will be an improvement over 2019.”
The company’s 2020 outlook includes benefits from lower aircraft rent and depreciation, as well as a further refund in 2020 of excess aircraft rent paid in previous years. It also includes the impact in 2020 from an increase in the amortization of deferred maintenance; the absence in 2020 of return conditions income realized in the first quarter of 2019; and improved operating efficiencies and cost savings.
As a result, adjusted EBITDA is anticipated to grow by a mid-teens percentage in 2020, and adjusted net income is expected to increase by a high-30% to low-40% level compared with 2019.*
Fourth-Quarter Results
Volumes in the fourth quarter of 2019 totaled 84,488 block hours compared with 83,437 in the fourth quarter of 2018, with operating revenue of $747.0 million versus $765.0 million in 2018.
Reported results for the three months ended December 31, 2019, reflected a loss from continuing operations, net of taxes, of $410.2 million, or $15.86 per diluted share, which included a noncash special charge of $616.2 million ($485.2 million after tax) and an unrealized loss on financial instruments of $3.8 million. For the three months ended December 31, 2018, our reported income from continuing operations, net of taxes, totaled $211.0 million, or $2.73 per diluted share, which included an unrealized gain on financial instruments of $134.8 million.
On an adjusted basis, EBITDA totaled $204.7 million in the fourth quarter of 2019 compared with $196.4 million in the fourth quarter of 2018. Also on an adjusted basis, income from continuing operations, net of taxes, totaled $98.2 million, or $3.80 per diluted share, in the fourth quarter of 2019 compared with $87.0 million, or $3.12 per diluted share, in the fourth quarter of 2018. Adjusted net income in the fourth quarter of 2019 included $7.6 million (after tax) of lower aircraft rent and $2.9 million (after tax) of lower depreciation as a result of the impairment.
Lower operating revenue in the fourth quarter of 2019 compared with the fourth quarter of 2018 was primarily due to the impact of tariffs and global trade tensions on average Charter segment revenue per block hour and on ACMI segment volumes, and certain labor-related service disruptions, partially offset by an increase in Charter segment volumes.
Lower ACMI segment revenue during the period reflected a decline in 747-400 ACMI flying due to the impact of tariffs and global trade tensions on customer demand, partially offset by growth in 747-400, 777 and 737 CMI cargo flying.
Higher ACMI segment contribution during the quarter reflected a reduction in heavy maintenance expense, a decrease in aircraft rent and lower depreciation, and growth in 747-400, 777 and 737 CMI cargo flying.
Charter segment revenue in the fourth quarter of 2019 was relatively in line with the fourth quarter of 2018, driven by increases in cargo and passenger flying that were mainly offset by a decline in commercial cargo yields (excluding fuel) due to the impact of tariffs and global trade tensions, as well as geopolitical unrest in certain South American countries and certain labor-related service disruptions. Block-hour volume growth during the period primarily reflected increases in passenger and cargo demand by the military, as well as an increase in commercial cargo flying.
Lower Charter segment contribution was primarily driven by a decrease in commercial cargo yields and lower 747 freighter utilization. This impact was partially offset by increased military passenger and cargo flying, a reduction in heavy maintenance expense, and lower aircraft rent and depreciation.
In Dry Leasing, lower segment revenue and contribution during the quarter primarily reflected the scheduled return of a 777-200 freighter in 2019.
Lower unallocated income and expenses, net, during the quarter primarily reflected a $27.6 million refund of aircraft rent paid in previous years, partially offset by fleet-growth initiatives, leadership transition costs and increased amortization of a customer incentive asset.
Reported results in the fourth quarter of 2019 also included an effective income tax benefit rate of 21.4%, due mainly to nontaxable changes in the value of outstanding warrants. On an adjusted basis, our results reflected an effective income tax expense rate of 17.7%.
Full-Year Results
Volumes in 2019 totaled 321,140 block hours compared with 296,264 in 2018, with operating revenue increasing to $2.74 billion in 2019 from $2.68 billion in 2018.
Reported results for the twelve months ended December 31, 2019, reflected a loss from continuing operations, net of taxes, of $293.1 million, or $11.35 per diluted share, which included a noncash special charge of $638.4 million ($503.1 million after tax), partially offset by an unrealized gain on financial instruments of $75.1 million. For the twelve months ended December 31, 2018, our reported income from continuing operations totaled $270.6 million, or $5.22 per diluted share, which included an unrealized gain on financial instruments of $123.1 million.
On an adjusted basis, EBITDA totaled $504.8 million in 2019 compared with $551.3 million in 2018. For the twelve months ended December 31, 2019, adjusted income from continuing operations, net of taxes, totaled $139.6 million, or $5.24 per diluted share, compared with $204.3 million, or $7.27 per diluted share, in 2018. Adjusted net income in 2019 included $7.6 million (after tax) of lower aircraft rent and $2.9 million (after tax) of lower depreciation as a result of the impairment.
Reported results in 2019 also included an effective income tax benefit rate of 38.0%, primarily due to proactive tax planning resulting in the favorable completion of an IRS examination of our 2015 income tax return and, to a lesser extent, a tax benefit from nontaxable changes in the value of outstanding warrants. On an adjusted basis, our results reflected an effective income tax expense rate of 12.5%.
Cash and Short-Term Investments
At December 31, 2019, our cash and cash equivalents, short-term investments and restricted cash totaled $114.3 million, compared with $248.4 million at December 31, 2018.
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 2019 primarily related to capital expenditures and payments for flight equipment and modifications, including the acquisition of 747-400 passenger aircraft, 767-300 aircraft and related freighter conversion costs, spare engines and GEnx engine performance upgrade kits.
Net cash used for financing activities during the period primarily reflected payments on debt obligations.
2020 Outlook*
Based on global economic conditions and our current expectations, and subject to coronavirus developments, we expect to fly approximately 325,000 block hours this year, with about 75% of the hours in ACMI and the balance in Charter. We also anticipate full-year 2020 revenue of approximately $2.8 billion.
Including the impact in 2019 and the expected impact in 2020 of lower aircraft rent and depreciation resulting from the impairment charge in 2019, we expect adjusted EBITDA to grow by a mid-teen percentage in 2020 compared with adjusted EBITDA of $504.8 million in 2019. We also expect adjusted net income to increase by a high-30% to low-40% level in 2020 compared with adjusted net income of $139.6 million in 2019. Excluding the impact of lower aircraft rent and depreciation in both years, we anticipate that adjusted EBITDA and adjusted net income in 2020 will be comparable to or slightly higher than their 2019 levels.*
Our outlook reflects an expected refund in 2020 of excess aircraft rent paid in previous years; an increase in amortization of deferred maintenance compared with 2019; the absence in 2020 of return conditions income that we realized in 2019; and improved operating efficiencies and cost savings.
It also reflects the parking of four less-efficient 747-400 converted freighters since the beginning of 2020. We also plan to return one 747-400 freighter to its lessor in the first half of this year. In addition, we have sold a 757 freighter and expect to sell a 777 freighter and a 737 passenger aircraft.
Similar to historical patterns, we anticipate that more than three-quarters of our adjusted net income in 2020 will occur in the second half of the year.
Aircraft maintenance expense in 2020 is expected to total approximately $380 million. Depreciation and amortization is expected to total about $250 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are projected to total approximately $90 to $100 million, significantly lower than $134 million in 2019, mainly for parts and components for our fleet.
We also expect our full-year 2020 adjusted effective income tax rate will be approximately 21.0%.
Depending on developments related to the coronavirus, we expect to fly approximately 75,000 block hours (about 75% in ACMI) in the first quarter of 2020, with revenue of approximately $640 million. We also anticipate adjusted EBITDA of about $90 million, and adjusted net income ranging from approximately breakeven to a modest profit.
We provide guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.*
Conference Call
Management will host a conference call to discuss Atlas Air Worldwide’s fourth-quarter and full-year 2019 financial and operating results at 11:00 a.m. Eastern Time on Thursday, February 20, 2020.
Interested parties may listen to the call live at Atlas Air Worldwide’s Investor site or at https://edge.media-server.com/mmc/p/f7kdxxxq.
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 February 28 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 9016708#.
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 income from continuing operations, net of taxes; Adjusted Diluted EPS from continuing operations, net of taxes; 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 Income (loss) from continuing operations, net of taxes; Diluted EPS from continuing operations, net of taxes; 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. Effective during the three months ended September 30, 2019, we changed our method of calculating Adjusted EBITDA to include Other Non-operating expenses (income) to enhance the usefulness for investors and analysts, and the comparability of the calculation to that of other companies. Prior period amounts have been adjusted for comparability.
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:
- Adjusted EBITDA; Adjusted income from continuing operations, net of taxes; and Adjusted Diluted EPS from continuing operations, net of taxes, provide a more comparable basis to analyze operating results and earnings and are measures commonly used by shareholders to measure our performance. In addition, management’s incentive compensation is determined, in part, by using Adjusted EBITDA and Adjusted income from continuing operations, net of taxes.
- Adjusted effective tax rate provides improved insight into the tax effects of our ongoing business operations.
- Free Cash Flow helps investors assess our ability, over the long term, to create value for our shareholders as it represents cash available to execute our capital allocation strategy.
*We provide guidance 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 the ultimate outcome of certain significant items. The principal item is the impact on our results of our outstanding warrants, which are highly dependent on the change in our stock price during the period reported. 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; 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 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; 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 2020 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 publically any forward-looking statement to reflect future events or circumstances.
Atlas Air Worldwide Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||
| Operating Revenue | $ | 747,049 | $ | 764,958 | $ | 2,739,189 | $ | 2,677,724 | ||||||||
| Operating Expenses | ||||||||||||||||
| Salaries, wages and benefits | 166,900 | 143,517 | 599,811 | 536,120 | ||||||||||||
| Aircraft fuel | 132,216 | 121,956 | 483,827 | 467,569 | ||||||||||||
| Maintenance, materials and repairs | 76,370 | 98,049 | 381,701 | 359,300 | ||||||||||||
| Depreciation and amortization | 60,428 | 61,459 | 251,097 | 217,340 | ||||||||||||
| Travel | 48,698 | 42,677 | 189,211 | 166,487 | ||||||||||||
| Aircraft rent | 33,368 | 42,666 | 155,639 | 162,444 | ||||||||||||
| Navigation fees, landing fees and other rent | 34,341 | 42,358 | 144,809 | 158,911 | ||||||||||||
| Passenger and ground handling services | 33,560 | 31,993 | 130,698 | 118,973 | ||||||||||||
| Loss on disposal of aircraft | 5,309 | - | 5,309 | - | ||||||||||||
| Special charge | 616,243 | - | 638,373 | 9,374 | ||||||||||||
| Transaction-related expenses | 579 | 836 | 4,164 | 2,111 | ||||||||||||
| Other | 54,973 | 51,890 | 215,521 | 195,553 | ||||||||||||
| Total Operating Expenses | 1,262,985 | 637,401 | 3,200,160 | 2,394,182 | ||||||||||||
| Operating Income (Loss) | (515,936 | ) | 127,557 | (460,971 | ) | 283,542 | ||||||||||
| Non-operating Expenses (Income) | ||||||||||||||||
| Interest income | (321 | ) | (2,006 | ) | (4,296 | ) | (6,710 | ) | ||||||||
| Interest expense | 29,815 | 31,739 | 120,330 | 119,378 | ||||||||||||
| Capitalized interest | (331 | ) | (392 | ) | (2,274 | ) | (4,727 | ) | ||||||||
| Loss on early extinguishment of debt | - | - | 804 | - | ||||||||||||
| Unrealized loss (gain) on financial instruments | 3,791 | (134,805 | ) | (75,109 | ) | (123,114 | ) | |||||||||
| Other (income) expense, net | (27,072 | ) | 118 | (27,668 | ) | (10,659 | ) | |||||||||
| Total Non-operating Expenses (Income) | 5,882 | (105,346 | ) | 11,787 | (25,832 | ) | ||||||||||
| Income (loss) from continuing operations before income taxes | (521,818 | ) | 232,903 | (472,758 | ) | 309,374 | ||||||||||
| Income tax (benefit) expense | (111,573 | ) | 21,899 | (179,645 | ) | 38,727 | ||||||||||
| Income (loss) from continuing operations, net of taxes | (410,245 | ) | 211,004 | (293,113 | ) | 270,647 | ||||||||||
| Loss from discontinued operations, net of taxes | - | (30 | ) | - | (80 | ) | ||||||||||
| Net Income (Loss) | $ | (410,245 | ) | $ | 210,974 | $ | (293,113 | ) | $ | 270,567 | ||||||
| Earnings (loss) per share from continuing operations: | ||||||||||||||||
| Basic | $ | (15.86 | ) | $ | 8.25 | $ | (11.35 | ) | $ | 10.60 | ||||||
| Diluted | $ | (15.86 | ) | $ | 2.73 | $ | (11.35 | ) | $ | 5.22 | ||||||
| Loss per share from discontinued operations: | ||||||||||||||||
| Basic | $ | - | $ | (0.00 | ) | $ | - | $ | (0.00 | ) | ||||||
| Diluted | $ | - | $ | (0.00 | ) | $ | - | $ | (0.00 | ) | ||||||
| Earnings (loss) per share: | ||||||||||||||||
| Basic | $ | (15.86 | ) | $ | 8.25 | $ | (11.35 | ) | $ | 10.60 | ||||||
| Diluted | $ | (15.86 | ) | $ | 2.73 | $ | (11.35 | ) | $ | 5.22 | ||||||
| Weighted average shares: | ||||||||||||||||
| Basic | 25,869 | 25,588 | 25,828 | 25,542 | ||||||||||||
| Diluted | 25,869 | 27,911 | 25,828 | 28,281 | ||||||||||||
Atlas Air Worldwide Holdings, Inc.
Consolidated Balance Sheets
(in thousands, except share data)
(Unaudited)
| December 31, 2019 | December 31, 2018 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 103,029 | $ | 221,501 | ||||
| Short-term investments | 879 | 15,624 | ||||||
| Restricted cash | 10,401 | 11,240 | ||||||
| Accounts receivable, net of allowance of $1,822 and $1,563, respectively | 290,119 | 269,320 | ||||||
| Prepaid expenses and other current assets | 228,103 | 112,146 | ||||||
| Total current assets | 632,531 | 629,831 | ||||||
| Property and Equipment | ||||||||
| Flight equipment | 4,880,424 | 5,213,734 | ||||||
| Ground equipment | 83,584 | 75,939 | ||||||
| Less: accumulated depreciation | (977,883 | ) | (860,354 | ) | ||||
| Flight equipment modifications in progress | 67,101 | 32,916 | ||||||
| Property and equipment, net | 4,053,226 | 4,462,235 | ||||||
| Other Assets | ||||||||
| Operating lease right-of-use assets | 231,133 | - | ||||||
| Deferred costs and other assets | 391,895 | 345,037 | ||||||
| Intangible assets, net and goodwill | 76,856 | 97,689 | ||||||
| Total Assets | $ | 5,385,641 | $ | 5,534,792 | ||||
| Liabilities and Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 79,683 | $ | 87,229 | ||||
| Accrued liabilities | 481,725 | 465,669 | ||||||
| Current portion of long-term debt and finance leases | 395,781 | 264,835 | ||||||
| Current portion of long-term operating leases | 141,973 | - | ||||||
| Total current liabilities | 1,099,162 | 817,733 | ||||||
| Other Liabilities | ||||||||
| Long-term debt and finance leases | 1,984,902 | 2,205,005 | ||||||
| Long-term operating leases | 392,832 | - | ||||||
| Deferred taxes | 74,040 | 256,970 | ||||||
| Financial instruments and other liabilities | 42,526 | 187,120 | ||||||
| Total other liabilities | 2,494,300 | 2,649,095 | ||||||
| Commitments and contingencies | ||||||||
| Equity | ||||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued | - | - | ||||||
| Common stock, $0.01 par value; 100,000,000 shares authorized; 31,048,842 and 30,582,571 shares issued, 25,870,876 and 25,590,293 shares outstanding (net of treasury stock), as of December 31, 2019 and December 31, 2018, respectively | 310 | 306 | ||||||
| Additional paid-in-capital | 761,715 | 736,035 | ||||||
| Treasury stock, at cost; 5,177,966 and 4,992,278 shares, respectively | (213,871 | ) | (204,501 | ) | ||||
| Accumulated other comprehensive loss | (2,818 | ) | (3,832 | ) | ||||
| Retained earnings | 1,246,843 | 1,539,956 | ||||||
| Total stockholders’ equity | 1,792,179 | 2,067,964 | ||||||
| Total Liabilities and Equity | $ | 5,385,641 | $ | 5,534,792 | ||||
1 Balance sheet debt at December 31, 2019 totaled $2,380.7 million, including the impact of $68.6 million of unamortized discount and debt issuance costs of $35.1 million, compared with $2,469.8 million, including the impact of $85.5 million of unamortized discount and debt issuance costs of $46.0 million at December 31, 2018.
2 The face value of our debt at December 31, 2019 totaled $2,484.4 million, compared with $2,601.3 million on December 31, 2018.
Atlas Air Worldwide Holdings, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
| For the Twelve Months Ended | ||||||||
| December 31, 2019 | December 31, 2018 | |||||||
| Operating Activities: | ||||||||
| Income (loss) from continuing operations, net of taxes | $ | (293,113 | ) | $ | 270,647 | |||
| Less: Loss from discontinued operations, net of taxes | - | (80 | ) | |||||
| Net Income (Loss) | (293,113 | ) | 270,567 | |||||
| Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 316,821 | 265,553 | ||||||
| Accretion of debt securities discount | (244 | ) | (888 | ) | ||||
| Provision for allowance for doubtful accounts | 41 | 12 | ||||||
| Loss on early extinguishment of debt | 804 | - | ||||||
| Special charge, net of cash payments | 638,373 | 9,374 | ||||||
| Unrealized gain on financial instruments | (75,109 | ) | (123,114 | ) | ||||
| Loss on disposal of aircraft | 5,309 | - | ||||||
| Deferred taxes | (180,553 | ) | 42,580 | |||||
| Stock-based compensation | 25,189 | 20,305 | ||||||
| Changes in: | ||||||||
| Accounts receivable | (22,524 | ) | (74,038 | ) | ||||
| Prepaid expenses, current assets and other assets | (66,843 | ) | (57,081 | ) | ||||
| Accounts payable and accrued liabilities | (47,807 | ) | 72,310 | |||||
| Net cash provided by operating activities | 300,344 | 425,580 | ||||||
| Investing Activities: | ||||||||
| Capital expenditures | (133,554 | ) | (114,415 | ) | ||||
| Payments for flight equipment and modifications | (214,236 | ) | (599,401 | ) | ||||
| Investment in joint ventures | (2,028 | ) | (1,050 | ) | ||||
| Proceeds from insurance | 38,133 | - | ||||||
| Proceeds from investments | 15,624 | 13,604 | ||||||
| Proceeds from disposal of engines | 10,300 | - | ||||||
| Net cash used for investing activities | (285,761 | ) | (701,262 | ) | ||||
| Financing Activities: | ||||||||
| Proceeds from debt issuance | 115,992 | 471,625 | ||||||
| Payment of debt issuance costs | (2,404 | ) | (9,622 | ) | ||||
| Payments of debt and finance lease obligations | (344,674 | ) | (250,015 | ) | ||||
| Proceeds from revolving credit facility | 100,000 | 135,000 | ||||||
| Payment of revolving credit facility | - | (135,000 | ) | |||||
| Customer maintenance reserves and deposits received | 14,736 | 15,590 | ||||||
| Customer maintenance reserves paid | (8,174 | ) | (250 | ) | ||||
| Purchase of treasury stock | (9,370 | ) | (10,769 | ) | ||||
| Net cash provided by (used for) financing activities | (133,894 | ) | 216,559 | |||||
| Net decrease in cash, cash equivalents and restricted cash | (119,311 | ) | (59,123 | ) | ||||
| Cash, cash equivalents and restricted cash at the beginning of period | 232,741 | 291,864 | ||||||
| Cash, cash equivalents and restricted cash at the end of period | $ | 113,430 | $ | 232,741 | ||||
| Noncash Investing and Financing Activities: | ||||||||
| Acquisition of flight equipment included in Accounts payable and accrued liabilities | $ | 37,390 | $ | 23,498 | ||||
| Acquisition of property and equipment acquired under operating leases | $ | 28,827 | $ | - | ||||
| Acquisition of flight equipment under finance lease | $ | 10,825 | $ | - | ||||
Atlas Air Worldwide Holdings, Inc.
Direct Contribution
(in thousands)
(Unaudited)
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||
| Operating Revenue: | ||||||||||||||||
| ACMI | $ | 344,901 | $ | 359,927 | $ | 1,247,770 | $ | 1,192,704 | ||||||||
| Charter | 361,021 | 358,759 | 1,305,860 | 1,313,484 | ||||||||||||
| Dry Leasing | 43,453 | 47,633 | 200,781 | 168,470 | ||||||||||||
| Customer incentive asset amortization | (7,117 | ) | (6,166 | ) | (33,135 | ) | (16,176 | ) | ||||||||
| Other | 4,791 | 4,805 | 17,913 | 19,242 | ||||||||||||
| Total Operating Revenue | $ | 747,049 | $ | 764,958 | $ | 2,739,189 | $ | 2,677,724 | ||||||||
| Direct Contribution: | ||||||||||||||||
| ACMI | $ | 104,412 | $ | 90,455 | $ | 218,459 | $ | 235,706 | ||||||||
| Charter | 69,817 | 81,923 | 149,372 | 211,661 | ||||||||||||
| Dry Leasing | 11,740 | 12,708 | 70,386 | 48,904 | ||||||||||||
| Total Direct Contribution for Reportable Segments | 185,969 | 185,086 | 438,217 | 496,271 | ||||||||||||
| Unallocated (income), net | (81,865 | ) | (86,152 | ) | (337,434 | ) | (298,526 | ) | ||||||||
| Loss on early extinguishment of debt | - | - | (804 | ) | - | |||||||||||
| Unrealized (loss) gain on financial instruments | (3,791 | ) | 134,805 | 75,109 | 123,114 | |||||||||||
| Special charge | (616,243 | ) | - | (638,373 | ) | (9,374 | ) | |||||||||
| Transaction-related expenses | (579 | ) | (836 | ) | (4,164 | ) | (2,111 | ) | ||||||||
| Loss on disposal of aircraft | (5,309 | ) | - | (5,309 | ) | - | ||||||||||
| Income (loss) from continuing operations before income taxes | (521,818 | ) | 232,903 | (472,758 | ) | 309,374 | ||||||||||
| Add back (subtract): | ||||||||||||||||
| Interest income | (321 | ) | (2,006 | ) | (4,296 | ) | (6,710 | ) | ||||||||
| Interest expense | 29,815 | 31,739 | 120,330 | 119,378 | ||||||||||||
| Capitalized interest | (331 | ) | (392 | ) | (2,274 | ) | (4,727 | ) | ||||||||
| Loss on early extinguishment of debt | - | - | 804 | - | ||||||||||||
| Unrealized loss (gain) on financial instruments | 3,791 | (134,805 | ) | (75,109 | ) | (123,114 | ) | |||||||||
| Other (income) expense, net | (27,072 | ) | 118 | (27,668 | ) | (10,659 | ) | |||||||||
| Operating Income (Loss) | $ | (515,936 | ) | $ | 127,557 | $ | (460,971 | ) | $ | 283,542 | ||||||
Atlas Air Worldwide uses an economic performance metric, Direct Contribution, to show the profitability of each of its segments after allocation of direct operating and ownership costs. Atlas Air Worldwide currently has the following reportable segments: ACMI, Charter, and Dry Leasing. Each segment has different commercial and economic characteristics, which are separately reviewed by our chief operating decision maker.
Direct Contribution consists of income (loss) from continuing operations before income taxes, excluding loss on early extinguishment of debt, unrealized (loss) gain on financial instruments, special charge, transaction-related expenses, loss on disposal of aircraft, and unallocated income and expenses, net.
Direct operating and ownership costs include crew costs, maintenance, fuel, ground operations, sales costs, aircraft rent, interest expense on the portion of debt used for financing aircraft, interest income on debt securities, and aircraft depreciation.
Unallocated income and expenses, net include corporate overhead, nonaircraft depreciation, noncash expenses and income, interest expense on the portion of debt used for general corporate purposes, interest income on nondebt securities, capitalized interest, foreign exchange gains and losses, other revenue and other nonoperating costs.
Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
| For the Three Months Ended | |||||||||||||||
| December 31, 2019 | December 31, 2018 | Percent Change | |||||||||||||
| Income (loss) from continuing operations, net of taxes | $ | (410,245 | ) | $ | 211,004 | (294.4 | )% | ||||||||
| Impact from: | |||||||||||||||
| Customer incentive asset amortization | 7,117 | 6,166 | |||||||||||||
| Special charge | 616,243 | - | |||||||||||||
| Costs associated with transactions1 | 578 | 836 | |||||||||||||
| Leadership transition costs | 3,343 | - | |||||||||||||
| Certain contract start-up costs2 | 34 | - | |||||||||||||
| Noncash expenses and income, net3 | 4,524 | 4,363 | |||||||||||||
| Unrealized loss (gain) on financial instruments | 3,791 | (134,805 | ) | ||||||||||||
| Other, net4 | 5,565 | 27 | |||||||||||||
| Income tax effect of reconciling items | (132,754 | ) | (595 | ) | |||||||||||
| Special tax item5 | (3 | ) | - | ||||||||||||
| Adjusted income from continuing operations, net of taxes | $ | 98,193 | $ | 86,996 | 12.9 | % | |||||||||
| Weighted average diluted shares outstanding | 25,869 | 27,911 | |||||||||||||
| Add: dilutive warrant6 | - | - | |||||||||||||
| Adjusted weighted average diluted shares outstanding | 25,869 | 27,911 | |||||||||||||
| Adjusted Diluted EPS from continuing operations, net of taxes | $ | 3.80 | $ | 3.12 | 21.8 | % | |||||||||
| For the Twelve Months Ended | |||||||||||||||
| December 31, 2019 | December 31, 2018 | Percent Change | |||||||||||||
| Income (loss) from continuing operations, net of taxes | $ | (293,113 | ) | $ | 270,647 | (208.3 | )% | ||||||||
| Impact from: | |||||||||||||||
| Customer incentive asset amortization | 33,135 | 16,176 | |||||||||||||
| Special charge | 638,373 | 9,374 | |||||||||||||
| Costs associated with transactions1 | 4,163 | 11,325 | |||||||||||||
| Leadership transition costs | 6,736 | - | |||||||||||||
| Certain contract start-up costs2 | 3,497 | - | |||||||||||||
| Noncash expenses and income, net3 | 18,267 | 16,852 | |||||||||||||
| Unrealized (gain) loss on financial instruments | (75,109 | ) | (123,114 | ) | |||||||||||
| Other, net4 | 3,170 | 963 | |||||||||||||
| Income tax effect of reconciling items | (145,295 | ) | 2,103 | ||||||||||||
| Special tax item5 | (54,272 | ) | - | ||||||||||||
| Adjusted income from continuing operations, net of taxes | $ | 139,552 | $ | 204,326 | (31.7 | )% | |||||||||
| Weighted average diluted shares outstanding | 25,828 | 28,281 | |||||||||||||
| Add: dilutive warrant6 | 758 | - | |||||||||||||
| dilutive restricted stock | 64 | - | |||||||||||||
| effect of convertible notes hedges7 | - | (180 | ) | ||||||||||||
| Adjusted weighted average diluted shares outstanding | 26,650 | 28,101 | |||||||||||||
| Adjusted Diluted EPS from continuing operations, net of taxes | $ | 5.24 | $ | 7.27 | (27.9 | )% | |||||||||
Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
| For the Three Months Ended | |||||||||||||||
| December 31, 2019 | December 31, 2018 | Percent Change | |||||||||||||
| Income (loss) from continuing operations, before income taxes | $ | (521,818 | ) | $ | 232,903 | (324.0 | )% | ||||||||
| Impact from: | |||||||||||||||
| Customer incentive asset amortization | 7,117 | 6,166 | |||||||||||||
| Special charge | 616,243 | - | |||||||||||||
| Costs associated with transactions1 | 578 | 836 | |||||||||||||
| Leadership transition costs | 3,343 | - | |||||||||||||
| Certain contract start-up costs2 | 34 | - | |||||||||||||
| Noncash expenses and income, net3 | 4,524 | 4,363 | |||||||||||||
| Unrealized loss (gain) on financial instruments | 3,791 | (134,805 | ) | ||||||||||||
| Other, net4 | 5,565 | 27 | |||||||||||||
| Adjusted income from continuing operations, before income taxes | $ | 119,377 | $ | 109,490 | 9.0 | % | |||||||||
| Income tax (benefit) expense | $ | (111,573 | ) | $ | 21,899 | ||||||||||
| Income tax effect of reconciling items | (132,754 | ) | (595 | ) | |||||||||||
| Special tax item5 | (3 | ) | - | ||||||||||||
| Adjusted income tax expense | 21,184 | 22,494 | |||||||||||||
| Adjusted income from continuing operations, before income taxes | $ | 119,377 | $ | 109,490 | |||||||||||
| Adjusted effective tax expense rate | 17.7 | % | 20.5 | % | |||||||||||
| For the Twelve Months Ended | |||||||||||||||
| December 31, 2019 | December 31, 2018 | Percent Change | |||||||||||||
| Income (loss) from continuing operations, before income taxes | $ | (472,758 | ) | $ | 309,374 | (252.8 | )% | ||||||||
| Impact from: | |||||||||||||||
| Customer incentive asset amortization | 33,135 | 16,176 | |||||||||||||
| Special charge | 638,373 | 9,374 | |||||||||||||
| Costs associated with transactions1 | 4,163 | 11,325 | |||||||||||||
| Leadership transition costs | 6,736 | - | |||||||||||||
| Certain contract start-up costs2 | 3,497 | - | |||||||||||||
| Noncash expenses and income, net3 | 18,267 | 16,852 | |||||||||||||
| Unrealized (gain) loss on financial instruments | (75,109 | ) | (123,114 | ) | |||||||||||
| Other, net4 | 3,170 | 963 | |||||||||||||
| Adjusted income from continuing operations, before income taxes | $ | 159,474 | $ | 240,950 | (33.8 | )% | |||||||||
| Income tax (benefit) expense | $ | (179,645 | ) | $ | 38,727 | ||||||||||
| Income tax effect of reconciling items | (145,295 | ) | 2,103 | ||||||||||||
| Special tax item5 | (54,272 | ) | - | ||||||||||||
| Adjusted income tax (benefit) expense | 19,922 | 36,624 | |||||||||||||
| Adjusted income from continuing operations, before income taxes | $ | 159,474 | $ | 240,950 | |||||||||||
| Adjusted effective tax expense rate | 12.5 | % | 15.2 | % | |||||||||||
1 Costs associated with transactions in 2019 primarily related to a customer transaction with warrants and other costs associated with our acquisition of Southern Air. Costs associated with transactions in 2018 primarily related to costs associated with our acquisition of Southern Air.
2 Certain contract start-up costs represent unique training-aircraft costs required for a new customer contract.
3 Noncash expenses and income, net in 2019 and 2018 primarily related to amortization of debt discount on the convertible notes.
4 Other, net in 2019 primarily related to a loss on the sale of a GEnx engine, a net insurance recovery, loss on early extinguishment of debt and accrual for legal matters and professional fees. Other, net in 2018 primarily related to loss on early extinguishment of debt and accrual for legal matters and professional fees.
5 Special tax item represents an income tax benefit from the completion of a 2015 IRS examination that is not related to ongoing operations.
6 Dilutive warrants represent potentially dilutive common shares related to the outstanding warrants. These warrants were excluded from Diluted EPS from continuing operations, net of taxes prepared in accordance with GAAP when they would have been antidilutive.
7 Economic benefit from the convertible notes hedges in offsetting dilution from the convertible notes.
Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures
(in thousands)
(Unaudited)
| For the Three Months Ended | ||||||||||||||
| December 31, 2019 | December 31, 2018 | Percent Change | ||||||||||||
| Income (loss) from continuing operations, net of taxes | $ | (410,245 | ) | $ | 211,004 | (294.4 | )% | |||||||
| Interest expense, net | 29,163 | 29,341 | ||||||||||||
| Depreciation and amortization | 60,428 | 61,459 | ||||||||||||
| Income tax (benefit) expense | (111,573 | ) | 21,899 | |||||||||||
| EBITDA | (432,227 | ) | 323,703 | |||||||||||
| Customer incentive asset amortization | 7,117 | 6,166 | ||||||||||||
| Special charge | 616,243 | - | ||||||||||||
| Costs associated with transactions1 | 578 | 836 | ||||||||||||
| Leadership transition costs | 3,343 | - | ||||||||||||
| Unrealized loss (gain) on financial instruments | 3,791 | (134,805 | ) | |||||||||||
| Other, net2 | 5,809 | 500 | ||||||||||||
| Adjusted EBITDA | $ | 204,654 | 196,400 | 4.2 | % | |||||||||
| For the Twelve Months Ended | ||||||||||||||
| December 31, 2019 | December 31, 2018 | Percent Change | ||||||||||||
| Income (loss) from continuing operations, net of taxes | $ | (293,113 | ) | $ | 270,647 | (208.3 | )% | |||||||
| Interest expense, net | 113,760 | 107,941 | ||||||||||||
| Depreciation and amortization | 251,097 | 217,340 | ||||||||||||
| Income tax (benefit) expense | (179,645 | ) | 38,727 | |||||||||||
| EBITDA | (107,901 | ) | 634,655 | |||||||||||
| Customer incentive asset amortization | 33,135 | 16,176 | ||||||||||||
| Special charge | 638,373 | 9,374 | ||||||||||||
| Costs associated with transactions1 | 4,163 | 11,325 | ||||||||||||
| Leadership transition costs | 6,736 | - | ||||||||||||
| Unrealized gain on financial instruments | (75,109 | ) | (123,114 | ) | ||||||||||
| Other, net2 | 5,379 | 2,855 | ||||||||||||
| Adjusted EBITDA | $ | 504,776 | 551,271 | (8.4 | )% | |||||||||
1 Costs associated with transactions in 2019 primarily related to a customer transaction with warrants and other costs associated with our acquisition of Southern Air. Costs associated with transactions in 2018 primarily related to costs associated with our acquisition of Southern Air.
2 Other, net in 2019 primarily related to a loss on the sale of a GEnx engine, net insurance recovery, loss on early extinguishment of debt and accrual for legal matters and professional fees. Other, net in 2018 primarily related to loss on early extinguishment of debt and accrual for legal matters and professional fees.
Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures
(in thousands, except per share data)
(Unaudited)
| For the Three Months Ended | ||||||||
| December 31, 2019 | December 31, 2018 | |||||||
| Net Cash Provided by Operating Activities | $ | 107,054 | $ | 161,457 | ||||
| Less: | ||||||||
| Capital expenditures | 25,960 | 29,596 | ||||||
| Capitalized interest | $ | 331 | $ | 392 | ||||
| Free Cash Flow1 | $ | 80,763 | $ | 131,469 | ||||
| For the Twelve Months Ended | ||||||||
| December 31, 2019 | December 31, 2018 | |||||||
| Net Cash Provided by Operating Activities | $ | 300,344 | $ | 425,580 | ||||
| Less: | ||||||||
| Capital expenditures | 133,554 | 114,415 | ||||||
| Capitalized interest | $ | 2,274 | $ | 4,727 | ||||
| Free Cash Flow1 | $ | 164,516 | $ | 306,438 | ||||
1 Free Cash Flow = Cash Flows from Operations minus Base Capital Expenditures and Capitalized Interest.
Base Capital Expenditures excludes purchases of aircraft.
Atlas Air Worldwide Holdings, Inc.
Operating Statistics and Traffic Results
(Unaudited)
| For the Three Months Ended | Increase/ | For the Twelve Months Ended | Increase/ | |||||||||||||||||||||
| December 31, 2019 | December 31, 2018 | (Decrease) | December 31, 2019 | December 31, 2018 | (Decrease) | |||||||||||||||||||
| Block Hours | ||||||||||||||||||||||||
| ACMI | 63,647 | 66,003 | (2,356 | ) | 245,706 | 225,665 | 20,041 | |||||||||||||||||
| Charter | 20,084 | 16,797 | 3,287 | 72,547 | 68,481 | 4,066 | ||||||||||||||||||
| Cargo | 14,898 | 12,831 | 2,067 | 51,982 | 50,798 | 1,184 | ||||||||||||||||||
| Passenger | 5,186 | 3,966 | 1,220 | 20,565 | 17,683 | 2,882 | ||||||||||||||||||
| Other | 757 | 637 | 120 | 2,887 | 2,118 | 769 | ||||||||||||||||||
| Total Block Hours | 84,488 | 83,437 | 1,051 | 321,140 | 296,264 | 24,876 | ||||||||||||||||||
| Revenue Per Block Hour | ||||||||||||||||||||||||
| ACMI | $ | 5,419 | $ | 5,453 | $ | (34 | ) | $ | 5,078 | $ | 5,285 | $ | (207 | ) | ||||||||||
| Charter | $ | 17,976 | $ | 21,359 | $ | (3,383 | ) | $ | 18,000 | $ | 19,180 | $ | (1,180 | ) | ||||||||||
| Cargo | $ | 16,630 | $ | 20,815 | $ | (4,185 | ) | $ | 17,164 | $ | 19,136 | $ | (1,972 | ) | ||||||||||
| Passenger | $ | 21,841 | $ | 23,118 | $ | (1,277 | ) | $ | 20,113 | $ | 19,306 | $ | 807 | |||||||||||
| Average Utilization (block hours per day) | ||||||||||||||||||||||||
| ACMI1 | 8.6 | 9.2 | (0.6 | ) | 8.5 | 8.7 | (0.2 | ) | ||||||||||||||||
| Charter | ||||||||||||||||||||||||
| Cargo | 8.5 | 10.4 | (1.9 | ) | 8.1 | 10.2 | (2.1 | ) | ||||||||||||||||
| Passenger | 5.7 | 4.8 | 0.9 | 6.1 | 6.8 | (0.7 | ) | |||||||||||||||||
| All Operating Aircraft1,2 | 8.4 | 9.0 | (0.6 | ) | 8.3 | 8.8 | (0.5 | ) | ||||||||||||||||
| Fuel | ||||||||||||||||||||||||
| Charter | ||||||||||||||||||||||||
| Average fuel cost per gallon | $ | 2.22 | $ | 2.42 | $ | (0.20 | ) | $ | 2.27 | $ | 2.36 | $ | (0.09 | ) | ||||||||||
| Fuel gallons consumed (000s) | 59,487 | 50,485 | 9,002 | 213,253 | 198,150 | 15,103 | ||||||||||||||||||
1 ACMI and All Operating Aircraft averages in the fourth quarter and 12 months of 2019 reflect the impact of increases in the number of CMI aircraft and amount of CMI flying compared with the same periods of 2018.
2 Average of All Operating Aircraft excludes Dry Leasing aircraft, which do not contribute to block-hour volumes.
Atlas Air Worldwide Holdings, Inc.
Operating Statistics and Traffic Results
(Unaudited)
| For the Three Months Ended | Increase/ | For the Twelve Months Ended | Increase/ | |||||||||||||||||||||
| December 31, 2019 | December 31, 2018 | (Decrease) | December 31, 2019 | December 31, 2018 | (Decrease) | |||||||||||||||||||
| Segment Operating Fleet (average aircraft equivalents during the period) | ||||||||||||||||||||||||
| ACMI1 | ||||||||||||||||||||||||
| 747-8F Cargo | 8.9 | 8.7 | 0.2 | 8.5 | 8.9 | (0.4 | ) | |||||||||||||||||
| 747-400 Cargo | 17.2 | 20.0 | (2.8 | ) | 17.9 | 17.2 | 0.7 | |||||||||||||||||
| 747-400 Dreamlifter | 3.4 | 2.9 | 0.5 | 3.5 | 3.0 | 0.5 | ||||||||||||||||||
| 777-200 Cargo | 8.0 | 6.0 | 2.0 | 7.1 | 5.5 | 1.6 | ||||||||||||||||||
| 767-300 Cargo | 24.0 | 25.6 | (1.6 | ) | 24.9 | 21.4 | 3.5 | |||||||||||||||||
| 767-200 Cargo | 9.0 | 9.0 | - | 9.0 | 9.0 | - | ||||||||||||||||||
| 737-800 Cargo | 4.2 | - | 4.2 | 2.4 | - | 2.4 | ||||||||||||||||||
| 737-400 Cargo | 5.0 | 5.0 | - | 5.0 | 5.0 | - | ||||||||||||||||||
| 747-400 Passenger | - | - | - | - | 0.3 | (0.3 | ) | |||||||||||||||||
| 767-200 Passenger | 1.0 | 1.0 | - | 1.0 | 1.0 | - | ||||||||||||||||||
| Total | 80.7 | 78.2 | 2.5 | 79.3 | 71.3 | 8.0 | ||||||||||||||||||
| Charter | ||||||||||||||||||||||||
| 747-8F Cargo | 1.0 | 1.3 | (0.3 | ) | 1.5 | 1.1 | 0.4 | |||||||||||||||||
| 747-400 Cargo | 18.0 | 12.1 | 5.9 | 16.0 | 12.3 | 3.7 | ||||||||||||||||||
| 767-300 Cargo | - | - | - | - | 0.2 | (0.2 | ) | |||||||||||||||||
| 747-400 Passenger | 5.0 | 4.0 | 1.0 | 4.3 | 2.9 | 1.4 | ||||||||||||||||||
| 767-300 Passenger | 4.9 | 4.9 | - | 4.9 | 4.2 | 0.7 | ||||||||||||||||||
| Total | 28.9 | 22.3 | 6.6 | 26.7 | 20.7 | 6.0 | ||||||||||||||||||
| Dry Leasing | ||||||||||||||||||||||||
| 777-200 Cargo | 7.0 | 8.0 | (1.0 | ) | 7.3 | 7.3 | - | |||||||||||||||||
| 767-300 Cargo | 21.0 | 21.2 | (0.2 | ) | 21.1 | 17.2 | 3.9 | |||||||||||||||||
| 757-200 Cargo | 1.0 | 1.0 | - | 1.0 | 1.0 | - | ||||||||||||||||||
| 737-300 Cargo | 1.0 | 1.0 | - | 1.0 | 1.0 | - | ||||||||||||||||||
| 737-800 Passenger | 1.0 | 1.0 | - | 1.0 | 1.0 | - | ||||||||||||||||||
| Total | 31.0 | 32.2 | (1.2 | ) | 31.4 | 27.5 | 3.9 | |||||||||||||||||
| Less: Aircraft Dry Leased to CMI customers | (21.0 | ) | (23.2 | ) | 2.2 | (22.6 | ) | (18.5 | ) | (4.1 | ) | |||||||||||||
| Total Operating Average Aircraft Equivalents | 119.6 | 109.5 | 10.1 | 114.8 | 101.0 | 13.8 | ||||||||||||||||||
1 ACMI average fleet excludes spare aircraft provided by CMI customers and Dry Leasing average fleet excludes aircraft awaiting placement.