Expected results in 2012 highlight the diversification of the company’s business model and ability to leverage core competencies to perform well in all economic conditions. During the year, the company modernized its fleet by adding four new B747-8 Freighters; placed the four 8Fs and two B747-400Fs in ACMI (aircraft, crew, maintenance and insurance) service; and capitalized on new organizational capabilities, including military passenger flying, asset-light CMI (crew, maintenance and insurance) operations, and B767 cargo and passenger service.Earnings in the company’s core ACMI segment are expected to grow significantly in 2013, driven by an increase in the number of B747-8Fs in ACMI service and an increase in CMI flying compared with 2012. AMC Charter and Commercial Charter segment contributions are expected to decline in 2013, reflecting a moderation in military cargo and passenger block-hour volumes as well as commercial charter market demand and yields. Segment results in 2013 will also be affected by an increase in total aircraft maintenance expense, with additional conditions-based engine overhauls, initial C-level airframe checks on three B747-8Fs delivered in the fourth quarter of 2011, and C-level checks on passenger aircraft for AMC and Commercial Charter flying. In addition, unallocated expenses are expected to increase as the benefit from capitalized interest related to the company’s purchase of nine 8F aircraft concludes with the final two deliveries expected in the first half of 2013. Atlas Air Worldwide is executing on a strategic plan that has built a resilient company with a strong balance sheet. The company’s model is working as expected amid difficult economic conditions and a related contraction in airfreight demand. Airfreight remains a vital element of the global economy, and the company is well-positioned to serve its customers, the airfreight markets, and to capitalize on a recovery in world demand and international trade. The company remains focused on the long-term growth of its business, and is leveraging its core competencies, industry leadership and deep understanding of its markets to deliver advantage and value to its customers and stockholders.
About Atlas Air Worldwide:Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Atlas Air Worldwide also maintains a 49% interest in Global Supply Systems Limited (GSS). Through Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft. Atlas, Titan and Polar offer a range of outsourced aircraft and aviation operating services that include ACMI service – in which customers receive an aircraft, crew, maintenance and insurance on a long-term basis; CMI service, for customers that provide their own aircraft; express network and scheduled air cargo service; military cargo and passenger charters; commercial cargo and passenger charters; and dry leasing of aircraft and engines. Atlas Air Worldwide’s press releases, SEC filings and other information can be accessed through the Company’s home page, www.atlasair.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. Such forward-looking statements 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: 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 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; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; labor costs and relations; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; 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 2012, 2013 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.