NEW YORK (TheStreet) -- Atlas Air Worldwide (AAWW) saw double-digit percentage losses on Friday after receiving notice that British Airways would be returning three 747-8 Freighter aircraft. By late afternoon, shares had tumbled 13.8% to $37.63.
British Airways said it would be returning the craft to Global Supply Systems (GSS), an Atlas Air 49%-owned U.K. subsidiary by April 2014 as part of a strategic exit from cargo-freighter service.
"We are very proud to have served [British Airways] over the past 18 years, including the last 12 years through GSS," said Atlas Air CEO William J. Flynn in a statement. "We will deploy these freighters in profitable revenue operations once redelivered to us, taking advantage of their superior fuel efficiency, range, capacity and loading capabilities."
The Purchase, NY-based business will receive early termination fees from British Airways pursuant to the terms of its contract.
TheStreet Ratings team rates ATLAS AIR WORLDWIDE HLDG INC as a Hold with a ratings score of C. The team has this to say about their recommendation:
"We rate ATLAS AIR WORLDWIDE HLDG INC (AAWW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."