Atlas Air Posts Lower Profits, Cuts Year View
Cargo carrier Atlas Air said on Thursday quarterly profit fell as demand in Asia softened and fuel expenses rose, and the company cut its full-year forecast, sending its shares down.
"There is weakness that's obviously come into the (freight) market over the last quarter or so," said Jason Ursaner, an analyst with CJS Securities. He added that while the quarterly results disappointed, the fundamentals of Atlas Air were "still pretty positive."
The provider of charter freight services to commercial airlines and the US military said net income was USD$28.2 million for the third quarter, down 17 percent from USD$33.8 million a year earlier.
Revenue rose 11 percent to USD$362.9 million.
Atlas Air said it now expects full-year profit in excess of USD$4.30 a share, compared with an August view of USD$5 a share. It cited expected lower contribution from commercial charter operations, delivery delays for Boeing 747-8 freighter planes, lower-than-expected flying tied to Boeing 787 programme adjustments and start-up costs for new business opportunities.