The freighter lessor and operator saw first-quarter revenues increase by 20% on last year to
Last year, the company benefitted from a
The company said that its figures were also negatively affected by increased pilot costs stemming from a new collective bargain agreement, a reduction in less profitable smaller gauage CMI flying, operational disruption due to omicron, and higher fuel prices.
Volumes in the first quarter declined by 6.7% year on year to 82,626 block hours.
On the positive side, Atlas benefited from higher yields and new and enhanced long-term contracts.
'We are off to an excellent start in 2022. We delivered strong earnings, despite the pandemic-related operational challenges we continue to navigate,' said
'We are seeing a sustaining shift in long-term customer demand for Atlas' dedicated aircraft, and the speed and reliability airfreight provides.
'During the first quarter, our customers continued to enter and enhance long-term contracts with Atlas for dedicated freighter capacity.'
'We are expanding and diversifying our customer base, and increasing flying under long-term contracts with attractive rates and guaranteed levels of flying.'
Atlas is adding four new 747-8F and four new 777 freighter aircraft. All four of the new 747-8Fs have been placed with customers under long-term contracts, and there is 'strong interest' for the new 777Fs as well.
Higher airline operations revenue primarily reflected an increase in the average rate per block hour, partially offset by a reduction in block hours, the company said.
The higher average rate per block hour was primarily due to higher yields (net of fuel), including the impact of new and extended long-term contracts, as well as higher fuel prices.
Block-hour volumes reflected a reduction in less profitable smaller gauge CMI service flying as well as operational disruptions due to the spike in Omicron cases globally.
'In Dry Leasing, segment revenue and contribution increased from the prior-year period primarily due to
'Dry Leasing contribution also benefited from lower interest expense related to the scheduled repayment of debt.'
Atlas also completed a
The company is also buying five of its existing B747-400Fs at the end of their leases during the course of this year, one of which was acquired in March.
Atlas expects to complete the remaining four aircraft acquisitions between May and
'Acquiring these widebody freighters underscores our confidence in the demand for international airfreight capacity, particularly in express, e-commerce and fast-growing global markets,' Atlas said.
'Keeping these aircraft in our fleet ensures continuity of capacity for our customers, which will drive strong returns for Atlas in the years ahead.'
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