Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document period end date | Sep. 30, 2021 | |
Amendment flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current fiscal year end date | --12-31 | |
Entity central index key | 0001135185 | |
Entity filer category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity registrant name | Atlas Air Worldwide Holdings, Inc. | |
Entity common stock shares outstanding | 29,028,291 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-16545 | |
Entity Tax Identification Number | 13-4146982 | |
Entity Address, Address Line One | 2000 Westchester Avenue | |
Entity Address, Address Line Two | Purchase | |
Entity Address, State or Province | NY | |
Entity Address, City or Town | New York | |
Entity Address, Postal Zip Code | 10577 | |
City Area Code | 914 | |
Local Phone Number | 701-8000 | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | AAWW | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 773,911 | $ 845,589 |
Restricted cash | 10,230 | 10,692 |
Accounts receivable, net of allowance of $3,739 and $1,233, respectively | 283,362 | 265,521 |
Prepaid expenses, assets held for sale and other current assets | 88,330 | 95,919 |
Total current assets | 1,155,833 | 1,217,721 |
Property and Equipment | ||
Flight equipment | 5,435,345 | 5,061,387 |
Ground equipment | 99,769 | 86,670 |
Less: accumulated depreciation | (1,290,928) | (1,147,613) |
Flight equipment purchase deposits and modifications in progress | 289,475 | 110,150 |
Property and equipment, net | 4,533,661 | 4,110,594 |
Other Assets | ||
Operating lease right-of-use assets | 158,387 | 255,805 |
Deferred costs and other assets | 350,759 | 374,242 |
Intangible assets, net and goodwill | 66,303 | 70,826 |
Total Assets | 6,264,943 | 6,029,188 |
Current Liabilities | ||
Accounts payable | 92,708 | 107,604 |
Accrued liabilities | 591,208 | 583,160 |
Current portion of long-term debt and finance leases | 703,650 | 298,690 |
Current portion of long-term operating leases | 56,670 | 157,732 |
Total current liabilities | 1,444,236 | 1,147,186 |
Other Liabilities | ||
Long-term debt and finance leases | 1,669,248 | 2,020,451 |
Long-term operating leases | 191,604 | 318,850 |
Deferred taxes | 297,472 | 203,586 |
Financial instruments and other liabilities | 38,119 | 77,576 |
Total other liabilities | 2,196,443 | 2,620,463 |
Commitments and contingencies | 0 | 0 |
Stockholders’ Equity | ||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $0.01 par value; 100,000,000 shares authorized; 34,515,565 and 32,877,533 shares issued, 29,025,102 and 27,517,297 shares outstanding (net of treasury stock), as of September 30, 2021 and December 31, 2020, respectively | 345 | 329 |
Additional paid-in capital | 926,853 | 873,874 |
Treasury stock, at cost; 5,490,463 and 5,360,236 shares, respectively | (225,327) | (217,889) |
Accumulated other comprehensive loss | (1,314) | (1,904) |
Retained earnings | 1,923,707 | 1,607,129 |
Total stockholders’ equity | 2,624,264 | 2,261,539 |
Total Liabilities and Equity | $ 6,264,943 | $ 6,029,188 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 3,739 | $ 1,233 |
Preferred stock par value | $ 1 | $ 1 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | 0 | 0 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 34,515,565 | 32,877,533 |
Common stock shares outstanding | 29,025,102 | 27,517,297 |
Treasury stock shares | 5,490,463 | 5,360,236 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Revenue | $ 1,016,100 | $ 809,886 | $ 2,867,832 | $ 2,278,641 |
Operating Expenses | ||||
Salaries, wages and benefits | 231,437 | 194,265 | 642,417 | 534,600 |
Aircraft fuel | 216,638 | 118,113 | 594,458 | 309,673 |
Navigation fees, landing fees and other rent | 46,622 | 42,870 | 138,918 | 109,909 |
Passenger and ground handling services | 40,268 | 36,266 | 121,837 | 98,355 |
Travel | 42,966 | 37,731 | 120,585 | 114,749 |
Aircraft rent | 15,485 | 24,239 | 53,928 | 72,522 |
Gain on disposal of aircraft | (810) | (163) | (794) | (6,878) |
Special charge | 0 | 547 | 0 | 16,481 |
Transaction-related expenses | 168 | 490 | 486 | 2,286 |
Other | 63,106 | 54,107 | 183,366 | 157,929 |
Total Operating Expenses | 832,167 | 690,694 | 2,419,618 | 1,977,717 |
Operating Income | 183,933 | 119,192 | 448,214 | 300,924 |
Non-operating Expenses (Income) | ||||
Interest income | (159) | (225) | (559) | (929) |
Interest expense | 27,173 | 28,524 | 81,345 | 86,749 |
Capitalized interest | (2,335) | (203) | (5,456) | (528) |
Loss on early extinguishment of debt | 0 | 7 | 0 | 81 |
Unrealized loss on financial instruments | 0 | 43,604 | 113 | 73,351 |
Other (income) expense, net | 3,136 | (62,689) | (41,174) | (112,081) |
Total Non-operating Expenses (Income) | 27,815 | 9,018 | 34,269 | 46,643 |
Income before income taxes | 156,118 | 110,174 | 413,945 | 254,281 |
Income tax expense | 36,583 | 36,120 | 97,367 | 77,962 |
Net Income | $ 119,535 | $ 74,054 | $ 316,578 | $ 176,319 |
Earnings per share: | ||||
Basic | $ 4.12 | $ 2.83 | $ 10.98 | $ 6.76 |
Diluted | $ 3.91 | $ 2.78 | $ 10.52 | $ 6.72 |
Weighted average shares: | ||||
Basic | 29,023 | 26,135 | 28,844 | 26,077 |
Diluted | 30,547 | 26,619 | 30,117 | 26,256 |
Service [Member] | ||||
Operating Expenses | ||||
Maintenance, materials and repairs | $ 102,819 | $ 116,634 | $ 356,499 | $ 379,086 |
Depreciation and amortization | $ 73,468 | $ 65,595 | $ 207,918 | $ 189,005 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income | $ 119,535 | $ 74,054 | $ 316,578 | $ 176,319 |
Other comprehensive income: | ||||
Reclassification to interest expense | 250 | 290 | 774 | 894 |
Income tax benefit | (60) | (69) | (184) | (202) |
Other comprehensive income | 190 | 221 | 590 | 692 |
Comprehensive Income | $ 119,725 | $ 74,275 | $ 317,168 | $ 177,011 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities: | ||
Net Income | $ 316,578 | $ 176,319 |
Adjustments to reconcile Net Income to net cash provided by operating activities: | ||
Depreciation and amortization | 265,231 | 240,826 |
Accretion of debt securities discount | 0 | (2) |
Provision for (reversal of) expected credit losses | (377) | 76 |
Loss on early extinguishment of debt | 0 | 81 |
Special charge, net of cash payments | 0 | 16,481 |
Unrealized loss on financial instruments | 113 | 73,351 |
Gain on disposal of aircraft | (794) | (6,878) |
Deferred taxes | 96,053 | 75,331 |
Stock-based compensation | 10,653 | 15,816 |
Changes in: | ||
Accounts receivable | (15,785) | 23,072 |
Prepaid expenses, current assets and other assets | (43,297) | (39,823) |
Accounts payable, accrued liabilities and other liabilities | (19,442) | 208,058 |
Net cash provided by operating activities | 608,933 | 782,708 |
Investing Activities: | ||
Capital expenditures | (64,132) | (45,134) |
Purchase deposits and payments for flight equipment and modifications | (346,028) | (102,777) |
Investment in joint ventures | (2,424) | 0 |
Proceeds from investments | 0 | 881 |
Proceeds from disposal of aircraft | 9,470 | 45,660 |
Net cash used for investing activities | (403,114) | (101,370) |
Financing Activities: | ||
Proceeds from debt issuance | 23,948 | 401,419 |
Payment of debt issuance costs | (1,274) | (5,172) |
Payments of debt and finance lease obligations | (271,078) | (353,795) |
Proceeds from revolving credit facility | 0 | 75,000 |
Payment of revolving credit facility | 0 | (175,000) |
Customer maintenance reserves and deposits received | 13,491 | 10,465 |
Customer maintenance reserves paid | (35,608) | (14,437) |
Treasury shares withheld for payment of taxes | (7,438) | (3,915) |
Net cash used for financing activities | (277,959) | (65,435) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (72,140) | 615,903 |
Cash, cash equivalents and restricted cash at the beginning of period | 856,281 | 113,430 |
Cash, cash equivalents and restricted cash at the end of period | 784,141 | 729,333 |
Noncash Investing and Financing Activities: | ||
Acquisition of property and equipment included in Accounts payable and accrued liabilities | 16,802 | 11,357 |
Acquisition of property and equipment acquired under operating leases | 9,661 | 2,486 |
Acquisition of flight equipment under finance leases | 191,913 | 17,035 |
Customer maintenance reserves settled with sale of aircraft | 0 | 6,497 |
Issuance of shares related to settlement of warrant liability | $ 31,582 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2019 | $ 1,792,179 | $ 310 | $ (213,871) | $ 761,715 | $ (2,818) | $ 1,246,843 |
Net Income | 176,319 | 0 | 0 | 0 | 0 | 176,319 |
Other comprehensive income | 692 | 0 | 0 | 0 | 692 | 0 |
Stock-based compensation | 15,816 | 0 | 0 | 15,816 | 0 | 0 |
Issuance of warrants | 36,332 | 0 | 0 | 36,332 | 0 | 0 |
Treasury shares withheld for payment of taxes | (3,915) | 0 | (3,915) | 0 | 0 | 0 |
Issuance of shares of restricted stock | 0 | 5 | 0 | (5) | 0 | 0 |
Ending Balance at Sep. 30, 2020 | 2,017,423 | 315 | (217,786) | 813,858 | (2,126) | 1,423,162 |
Beginning Balance at Jun. 30, 2020 | 1,930,367 | 315 | (217,711) | 801,002 | (2,347) | 1,349,108 |
Net Income | 74,054 | 0 | 0 | 0 | 0 | 74,054 |
Other comprehensive income | 221 | 0 | 0 | 0 | 221 | 0 |
Stock-based compensation | 5,310 | 0 | 0 | 5,310 | 0 | 0 |
Issuance of warrants | 7,546 | 0 | 0 | 7,546 | 0 | 0 |
Treasury shares withheld for payment of taxes | (75) | 0 | (75) | 0 | 0 | 0 |
Ending Balance at Sep. 30, 2020 | 2,017,423 | 315 | (217,786) | 813,858 | (2,126) | 1,423,162 |
Beginning Balance at Dec. 31, 2020 | 2,261,539 | 329 | (217,889) | 873,874 | (1,904) | 1,607,129 |
Net Income | 316,578 | 0 | 0 | 0 | 0 | 316,578 |
Other comprehensive income | 590 | 0 | 0 | 0 | 590 | 0 |
Stock-based compensation | 10,653 | 0 | 0 | 10,653 | 0 | 0 |
Issuance of warrants | 10,760 | 0 | 0 | 10,760 | 0 | 0 |
Treasury shares withheld for payment of taxes | (7,438) | 0 | (7,438) | 0 | 0 | 0 |
Issuance of shares related to settlement of warrant | 31,582 | 13 | 0 | 31,569 | 0 | 0 |
Issuance of shares of restricted stock | 0 | 3 | 0 | (3) | 0 | 0 |
Ending Balance at Sep. 30, 2021 | 2,624,264 | 345 | (225,327) | 926,853 | (1,314) | 1,923,707 |
Beginning Balance at Jun. 30, 2021 | 2,497,054 | 345 | (225,321) | 919,362 | (1,504) | 1,804,172 |
Net Income | 119,535 | 0 | 0 | 0 | 0 | 119,535 |
Other comprehensive income | 190 | 0 | 0 | 0 | 190 | 0 |
Stock-based compensation | 3,187 | 0 | 0 | 3,187 | 0 | 0 |
Issuance of warrants | 4,304 | 0 | 0 | 4,304 | 0 | 0 |
Treasury shares withheld for payment of taxes | (6) | 0 | (6) | 0 | 0 | 0 |
Issuance of shares of restricted stock | 0 | 0 | 0 | 0 | 0 | 0 |
Ending Balance at Sep. 30, 2021 | $ 2,624,264 | $ 345 | $ (225,327) | $ 926,853 | $ (1,314) | $ 1,923,707 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) (Unaudited) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Treasury shares withheld for payment of taxes | 495 | 1,306 | 130,227 | 180,723 |
Issuance of shares of restricted stock | 93 | 357,582 | 448,386 | |
Issuance of shares related to settlement of warrant | 1,280,450 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Our consolidated financial statements include the accounts of the holding company, Atlas Air Worldwide Holdings, Inc. (“AAWW”), and its consolidated subsidiaries. AAWW is the parent company of Atlas Air, Inc. (“Atlas”) and Southern Air Holdings, Inc. (“Southern Air”). AAWW is also the parent company of several subsidiaries related to our dry leasing services (collectively referred to as “Titan”). AAWW has a 51% equity interest and 75% voting interest in Polar Air Cargo Worldwide, Inc. (“Polar”). We record our share of Polar’s results under the equity method of accounting. Polar is a variable interest entity that we do not consolidate because we are not the primary beneficiary and we generally do not have any financial exposure to fund debt obligations or operating losses of Polar (see Note 4 for further discussion). The terms “we,” “us,” “our,” and the “Company” mean AAWW and all entities included in its consolidated financial statements. We provide outsourced aircraft and aviation operating services throughout the world, serving Africa, Asia, Australia, Europe, the Middle East, North America and South America through: (i) aircraft operating service agreements, including those through which we provide aircraft to customers and value-added services, including crew, maintenance and insurance (“ACMI”), crew, maintenance and insurance, but not the aircraft (“CMI”) and cargo and passenger charter services (“Charter”); and (ii) dry leasing aircraft and engines (“Dry Leasing” or “Dry Lease”). The accompanying unaudited consolidated financial statements and related notes (the “Financial Statements”) have been prepared in accordance with the U.S. Securities and Exchange Commission (the “SEC”) requirements for quarterly reports on Form 10-Q, and consequently exclude certain disclosures normally included in audited consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Intercompany accounts and transactions have been eliminated. The Financial Statements should be read in conjunction with the audited consolidated financial statements and the notes included in the AAWW Annual Report on Form 10-K for the year ended December 31, 2020, which includes additional disclosures and a summary of our significant accounting policies. The December 31, 2020 balance sheet data was derived from that Annual Report. In our opinion, these Financial Statements include all adjustments, consisting of normal recurring items, considered necessary by management to fairly state the Company’s results of operations, financial position, and cash flows. Our quarterly results are subject to seasonal and other fluctuations, including fluctuations resulting from the global COVID-19 pandemic (see Note 3 for further discussion), and the operating results for any quarter are therefore not necessarily indicative of results that may be otherwise expected for the entire year. Certain reclassifications have been made to prior periods’ notes to the Financial Statements to conform to the current year’s presentation of segments (see Note 11 for further discussion). Except for per share data, all dollar amounts are in thousands unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Heavy Maintenance Except as described in the paragraph below, we account for heavy maintenance costs for airframes and engines using the direct expense method. Under this method, heavy maintenance costs are charged to expense upon induction, based on our best estimate of the costs. We account for heavy maintenance costs for airframes and engines used in our Dry Leasing segment and engines used on our 747-8F and 777-200 aircraft using the deferral method. Under this method, we defer the expense recognition of scheduled heavy maintenance events, which are amortized over the shorter of the estimated period until the next scheduled heavy maintenance event is required or remaining lease term. Amortization of deferred maintenance expense included in Depreciation and amortization was $12.8 million and $37.1 million for the three and nine months ended September 30, 2021, respectively. Amortization of deferred maintenance expense was $12.5 million and $30.8 million for the three and nine months ended September 30, 2020, respectively. Deferred maintenance included within Deferred costs and other assets is as follows: Balance as of December 31, 2020 $ 191,303 Deferred maintenance costs 38,493 Amortization of deferred maintenance (37,070 ) Balance as of September 30, 2021 $ 192,726 Property and Equipment Committed expenditures to acquire aircraft and spare engines are expected to be $48.2 million for the remainder of 2021 and $458.3 million in 2022. These expenditures include our January 2021 agreement to purchase four 747-8F aircraft from The Boeing Company (“Boeing”) that are expected to be delivered from May through October 2022 and other agreements for spare engines. Recent Accounting Pronouncements Not Yet Adopted In August 2020, the Financial Accounting Standards Board amended its accounting guidance for certain financial instruments with characteristics of liabilities and equity, including convertible debt instruments. For convertible debt with a cash conversion feature, the amended guidance removes the current accounting model to separately account for the liability and equity components, which currently results in the amortization of a debt discount to interest expense. Under this amended guidance, such convertible debt will be accounted for as a single debt instrument with no amortization of a debt discount to interest expense, unless certain other conditions are met. The amended guidance also requires the use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. The amended guidance is effective as of the beginning of 2022. The two permitted transition methods under the guidance are the full retrospective approach, under which the guidance is applied to all periods presented, or the modified retrospective approach, under which the guidance is applied only to the most current period presented. We will adopt this amended guidance on its required effective date of January 1, 2022. While we are still assessing the impact the amended guidance will have on our financial statements, we expect the amount previously allocated to the equity component will be reclassified to debt. In addition, the amended guidance is expected to result in a material increase in net income and reduction in interest expense, as well as a material reduction in diluted earnings per share resulting from an increase in the number of shares included in the denominator. |
COVID-19 Pandemic
COVID-19 Pandemic | 9 Months Ended |
Sep. 30, 2021 | |
Extraordinary And Unusual Items [Abstract] | |
COVID-19 Pandemic | 3. COVID-19 Pandemic COVID-19 In December 2019, COVID-19 was first reported in China and has since spread to most other regions of the world. In March 2020, COVID-19 was determined to be a global pandemic by the World Health Organization. Since this public health crisis began, it has disrupted global manufacturing, supply chains, passenger travel and consumer spending, resulting in a reduction in flights by some of our customers and lower U.S. Military Air Mobility Command (“AMC”) passenger flying as the military had taken precautionary measures to limit the movement of personnel through June 2021. Commercial charter cargo demand and yields, net of fuel, have increased as a result of the ongoing reduction of available cargo capacity provided by passenger airlines in the market and increased demand for transporting goods due to the COVID-19 pandemic. We have incurred and expect to continue to incur significant additional costs, including premium pay for pilots operating in certain areas significantly impacted by COVID-19; other operational costs, including costs for continuing to provide a safe working environment for our employees; and higher crew costs related to increased pay rates we provided to our pilots beginning in May 2020 in advance of a new joint collective bargaining agreement (“JCBA”) with our pilots beginning in September 2021 (see Note 12 for additional discussion). In addition, the availability of hotels and restaurants, evolving travel restrictions and vaccine mandates, health screenings, ground handling delays and a reduction in passenger flights by other airlines globally, or airport closures, have impacted and could further impact our ability to position employees to operate and fully utilize all of our aircraft. To mitigate the impact of any COVID-19 pandemic disruptions, we have: • made COVID-19 vaccinations available to employees; • provided paid time-off for employees to get COVID-19 vaccinations; • implemented frequent deep cleaning of all aircraft and facilities; • provided safety kits for each crewmember and all aircraft; • adjusted routes to limit exposure to regions significantly impacted by the COVID-19 pandemic; • implemented significant workforce testing, social distancing and protection measures at all of our facilities; • arranged for employees who can work remotely to do so and developed plans for a partial return to the workplace based on local conditions; • reduced nonessential employee travel; • reduced the use of contractors; • implemented a number of other cost reduction initiatives; • entered into a Payroll Support Program Agreement (the “PSP Agreement”) with the U.S. Department of the Treasury (the “U.S. Treasury”), with respect to payroll support funding available to cargo air carriers under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (the “Payroll Support Program”) (see discussion below); and • deferred payment of the employer portion of social security taxes as provided for under the CARES Act through the end of 2020, half of which will be paid by the end of 2021 and the other half will be paid by the end of 2022. Pa yroll Support Program under the CARES Act As of May 29, 2020 (the “PSP Closing Date”), Atlas and Southern Air (the “PSP Recipients”) entered into a PSP Agreement with the U.S. Treasury. As of the PSP Closing Date, AAWW also entered into a Warrant Agreement (the “Warrant Agreement”) with the U.S. Treasury, and AAWW issued a $199.8 million senior unsecured promissory note to the U.S. Treasury (the “Promissory Note”), with Atlas and Southern Air as guarantors. In connection with the payroll support funding received in 2020 under the PSP Agreement, we issued warrants to the U.S. Treasury to acquire up to 625,452 shares of our common stock. As of September 30, 2021, no portion of the warrants have been exercised. We initially recognized deferred grant income within Accrued liabilities for the difference between the payroll support funding received in 2020 under the PSP Agreement and the amounts recorded for the Promissory Note and the Warrant Agreement. Grant income has been subsequently recognized within Other (income) expense, net in the consolidated statement of operations on a pro-rata basis over the periods that the qualifying employee wages, salaries and benefits are paid. The remaining $40.9 million of deferred grant income as of December 31, 2020 was recognized as grant income within Other (income) expense, net in the consolidated statement of operations during the three months ended March 31, 2021. We recognized grant income of $64.2 million and $84.4 million during the three and nine months ended September 30, 2020, respectively. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | 4. Related Parties Polar AAWW has a 51% equity interest and 75% voting interest in Polar. DHL Network Operations (USA), Inc. (“DHL”), a subsidiary of Deutsche Post AG, holds a 49% equity interest and a 25% voting interest in Polar. Polar is a variable interest entity that we do not consolidate because we are not the primary beneficiary as the risks associated with the direct costs of operation are with DHL. Under a 20-year blocked space agreement, which began in 2008, Polar provides air cargo capacity to DHL. Atlas has several agreements with Polar to provide ACMI, CMI, Dry Leasing, administrative, sales and ground support services to one another. We do not have any financial exposure to fund debt obligations or operating losses of Polar, except for any liquidated damages that we could incur under these agreements. The following table summarizes our transactions with Polar: For the Three Months Ended For the Nine Months Ended Revenue and Expenses: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Revenue from Polar $ 81,119 $ 80,876 $ 234,036 $ 239,968 Ground handling and airport fees to Polar 1,096 796 2,917 2,389 Accounts receivable/payable as of: September 30, 2021 December 31, 2020 Receivables from Polar $ 9,115 $ 31,079 Payables to Polar 8,169 3,477 Aggregate Carrying Value of Polar Investment as of: September 30, 2021 December 31, 2020 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 In addition to the amounts in the table above, Atlas recognized revenue from flying on behalf of Polar of $28.3 million and $151.4 million for the three and nine months ended September 30, 2021, respectively. Atlas recognized revenue from flying on behalf of Polar of $48.0 million and $158.5 million for the three and nine months ended September 30, 2020, respectively. Dry Leasing Joint Venture We hold a 10% interest in a joint venture with an unrelated third party, which we entered into in December 2019, to develop a diversified freighter aircraft dry leasing portfolio. Through Titan, we provide aircraft and lease management services to the joint venture for fees based upon aircraft assets under management, among other things. Our investment in the joint venture is accounted for under the equity method of accounting. Under the joint venture, we have a commitment to provide up to $40.0 million of capital contributions before December 2022, of which $6.8 million has been contributed as of September 30, 2021. Our maximum exposure to losses from the entity is limited to our investment. The joint venture has third-party debt obligations of $56.8 million that are not guaranteed by us. The following table summarizes our transactions with our dry leasing joint venture: For the Three Months Ended For the Nine Months Ended Revenue and Expenses: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Revenue from dry leasing joint venture $ 288 $ - $ 423 $ - Aircraft rent to dry leasing joint venture 2,250 - 6,750 - Aggregate Carrying Value of Joint Venture as of: September 30, 2021 December 31, 2020 Aggregate Carrying Value of Dry Leasing Joint Venture $ 6,293 $ 4,438 Parts Joint Venture We hold a 50% interest in a joint venture with an unrelated third party to purchase rotable parts and provide repair services for those parts, primarily for 747-8F aircraft. The joint venture is a variable interest entity and we have not consolidated the joint venture because we are not the primary beneficiary as we do not exercise financial control. Our investment in the joint venture is accounted for under the equity method of accounting and was $18.9 million as of September 30, 2021 and $21.0 million as of December 31, 2020. Our maximum exposure to losses from the entity is limited to our investment, which is composed primarily of rotable inventory parts. The joint venture does not have any third-party debt obligations. We had Accounts receivable from the joint venture of $0.1 million as of September 30, 2021 and $0.2 million as of December 31, 2020. We had Accounts payable to the joint venture of $1.3 million as of September 30, 2021 and $0.9 million as of December 31, 2020. |
Amazon
Amazon | 9 Months Ended |
Sep. 30, 2021 | |
Warrants And Rights Note Disclosure [Abstract] | |
Amazon | 5. Amazon In May 2016, we entered into certain agreements with Amazon.com, Inc. and its subsidiary, Amazon Fulfillment Services, Inc., (collectively “Amazon”), which involve, among other things, CMI operation of up to 20 Boeing 767-300 freighter aircraft for Amazon by Atlas, as well as Dry Leasing by Titan. The Dry Leases have a term of ten years from the commencement of each agreement, while the CMI operations are for seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years). As of September 30, 2021, 19 767-300 freighters were in Dry Lease service, of which 17 were operating in CMI service. In conjunction with the agreements entered into in May 2016, we granted Amazon a warrant providing the right to acquire up to 20% of our outstanding common shares, as of the date of the agreements, after giving effect to the issuance of shares pursuant to the warrants, at an exercise price of $37.34 per share, as adjusted (“Warrant A”). All 7.5 million shares, as adjusted, have vested in full and been exercised in two transactions. In October 2020, Amazon exercised shares of Warrant A through a cashless exercise resulting in the issuance of 1,375,421 shares of our common stock. In January 2021, Amazon exercised the remaining shares of Warrant A through a cashless exercise resulting in the issuance of 1,210,741 shares of our common stock. The agreements entered into in May 2016 also provided incentives for future growth of the relationship as Amazon may increase its business with us. In that regard, we granted Amazon a warrant to acquire up to an additional 10% of our outstanding common shares, as of the date of the agreements, after giving effect to the issuance of shares pursuant to the warrants, for an exercise price of $37.34 per share, as adjusted (“Warrant B”). This warrant to purchase 3.77 million shares, as adjusted, vests in increments of 37,660 shares, as adjusted, each time Amazon has paid $4.2 million of revenue to us, up to a total of $420.0 million, for incremental business beyond the original 20 767-300 freighters. As of September 30, 2021, 828,520 shares, as adjusted, of Warrant B have vested. Upon vesting, Warrant B becomes exercisable in accordance with its terms through May 2023. In January 2021, Amazon exercised shares of Warrant B through a cashless exercise resulting in the issuance of 69,709 shares of our common stock. In March 2019, we amended the agreements entered into in 2016 with Amazon, pursuant to which we began providing CMI services using Boeing 737-800 freighter aircraft provided by Amazon. The 737-800 CMI operations are for a term of seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years). As of September 30, 2021, eight 737-800 freighter aircraft were operating in CMI service for Amazon. In connection with the amended agreements, we granted Amazon a warrant to acquire up to an additional 9.9% of our outstanding common shares, as of the date of the agreements, after giving effect to the issuance of shares pursuant to the warrants, for an exercise price of $52.67 per share, as adjusted (“Warrant C”). After Warrant B has vested in full, this warrant to purchase 6.66 million shares, as adjusted, would vest in increments of 45,623 shares, as adjusted, each time Amazon has paid $6.9 million of revenue to us, up to a total of $1.0 billion, for incremental business beyond Warrant A and Warrant B. As of September 30, 2021, no portion of Warrant C has vested. Upon vesting, Warrant C would become exercisable in accordance with its terms through March 2026. While Amazon would be entitled to vote the shares it owns up to 14.9% of our outstanding common shares, in its discretion, it would be required to vote any shares it owns in excess of 14.9% of our outstanding common shares in accordance with the recommendation of our board of directors. Upon the vesting of Warrant A in previous years, the fair value of the warrant was recognized as a customer incentive asset within Deferred costs and other assets , net and is amortized as a reduction of Operating Revenue in proportion to the amount of revenue recognized over the terms of the Dry Leases and CMI agreements. When it becomes probable that an increment of either Warrant B or C will vest and the related revenue begins to be recognized, the grant date fair value of such portion is recognized as a customer incentive asset within Deferred costs and other assets, net and is amortized as a reduction of Operating Revenue in proportion to the amount of related revenue recognized. The grant date fair value of such increment is also recorded as Additional paid-in capital. At the time of vesting, any amounts recorded in Additional paid-in capital related to Dry Lease contracts would be reclassified as a warrant liability within Financial instruments and other liabilities with changes in fair value recorded in Unrealized loss (gain) on financial instruments . We amortized $11.3 million and $33.3 million of the customer incentive asset as a reduction of Operating Revenue for the three and nine months ended September 30, 2021, respectively. We amortized $9.9 million and $28.4 million of the customer incentive asset for the three and nine months ended September 30, 2020, respectively. Customer incentive asset included within Deferred costs and other assets is as follows: Balance at December 31, 2020 $ 125,276 Initial value for estimate of vested or expected to vest warrants 10,759 Amortization of customer incentive asset (33,256 ) Balance as of September 30, 2021 $ 102,779 We recognized an unrealized loss of $0.1 million on the Amazon warrant liability related to Warrant A during the nine months ended September 30, 2021. We recognized unrealized losses of $43.6 million and $73.4 million on the Amazon Warrant liability during the three and nine months ended September 30, 2020, respectively. The fair value of the Amazon warrant liability was zero as of September 30, 2021 and $31.5 million as of December 31, 2020. Due to the exercise of Warrant A discussed above, our earnings are no longer affected by changes in the fair value of our Amazon warrant liability. |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | 6. Supplemental Financial Information Accounts Receivable Accounts receivable, net of allowance for expected credit losses related to customer contracts, excluding Dry Leasing contracts, was $253.2 million as of September 30, 2021 and $195.6 million as of December 31, 2020. Allowance for expected credit losses, included within Accounts receivable, is as follows: Balance as of December 31, 2020 $ 1,233 Bad debt recovery (377 ) Amounts written off, net of other items 2,883 Balance as of September 30, 2021 $ 3,739 Accrued Liabilities Accrued liabilities consisted of the following as of: September 30, 2021 December 31, 2020 Salaries, wages and benefits $ 167,820 $ 136,753 Maintenance 119,967 142,374 Customer maintenance reserves 83,266 93,092 Deferred revenue 63,799 41,665 Aircraft fuel 30,066 24,578 Deferred grant income - 40,944 Other 126,290 103,754 Accrued liabilities $ 591,208 $ 583,160 Revenue Contract Liability Deferred revenue for customer contracts, excluding Dry Leasing contracts, represents amounts collected from, or invoiced to, customers in advance of revenue recognition. The balance of Deferred revenue will increase or decrease based on the timing of invoices and recognition of revenue. Changes in Deferred r evenue during the nine months ended September 30, 2021 were as follows: Balance as of December 31, 2020 $ 30,291 Revenue recognized (229,325 ) Amounts collected or invoiced 252,076 Balance as of September 30, 2021 $ 53,042 Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: September 30, 2021 December 31, 2020 Cash and cash equivalents $ 773,911 $ 845,589 Restricted cash 10,230 10,692 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 784,141 $ 856,281 |
Assets Held For Sale and Other
Assets Held For Sale and Other Income | 9 Months Ended |
Sep. 30, 2021 | |
Assets Held For Sale And Other Income [Abstract] | |
Assets Held For Sale and Other Income | 7. Assets Held For Sale and Other Income As of December 31, 2020, we had two 737-400 passenger aircraft previously used for training purposes and certain spare CF6-80 engines classified as held for sale. We received net proceeds of $9.5 million during the nine months ended September 30, 2021 from the completion of the sales of the two 737-400 passenger aircraft and some of the spare CF6-80 engines. The carrying value of the assets held for sale was $5.5 million and $14.1 million as of September 30, 2021 and December 31, 2020, respectively, which was included within Prepaid expense, assets held for sale and other current assets in the consolidated balance sheets. We estimated the fair value of these assets, less costs to sell, based on bids received from independent third parties or recently completed sales. Sales of the remaining engines are expected to be completed during 2021. We recognized a refund of $4.6 million during the nine months ended September 30, 2021 related to aircraft rent paid in previous years within Other (income) expense, net. We recognized refunds of $32.9 million during the nine months ended September 30, 2020, related to aircraft rent paid in previous years within Other (income) expense, net. |
Debt and Finance Leases
Debt and Finance Leases | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Finance Leases | 8. Debt and Finance Leases Term Loans In March 2021, we borrowed $16.2 million at a fixed interest rate of 0.93% under an unsecured five-year In June 2021, we borrowed $7.8 million at a fixed interest rate of 0.91% under an unsecured five-year Finance Leases In May, June and August 2021, we amended eight operating leases for 747-400 freighter aircraft to acquire the aircraft at or prior to the end of the lease terms, resulting in additional commitments of $123.1 million and a change in classification to finance leases. Three of the aircraft were acquired in October 2021 with the remainder to be acquired from March to December 2022. Convertible Notes In May 2017, we issued $289.0 million aggregate principal amount of 1.88% convertible senior notes that mature on June 1, 2024 (the “2017 Convertible Notes”) in an underwritten public offering. In June 2015, we issued $224.5 million aggregate principal amount of 2.25% convertible senior notes that mature on June 1, 2022 (the “2015 Convertible Notes”) in an underwritten public offering. The 2017 Convertible Notes and the 2015 Convertible Notes (collectively, the “Convertible Notes”) are senior unsecured obligations and accrue interest payable semiannually on June 1 and December 1 of each year. The Convertible Notes are due on their respective maturity dates, unless earlier converted or repurchased pursuant to their respective terms. Upon conversion, each of the Convertible Notes will be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. Our current intent and policy is to settle conversions with a combination of cash and shares of common stock with the principal amounts of the Convertible Notes paid in cash. Effective September 1, 2021, all conversions of the 2015 Convertible Notes are required to be settled in cash for the principal amount . The Convertible Notes consisted of the following as of September 30, 2021: 2015 Convertible Notes 2017 Convertible Notes Remaining life in months 8 32 Liability component: Gross proceeds $ 224,500 $ 289,000 Less: debt discount, net of amortization (6,128 ) (30,235 ) Less: debt issuance cost, net of amortization (560 ) (2,316 ) Net carrying amount $ 217,812 $ 256,449 Equity component (1) $ 52,903 $ 70,140 (1) Included in Additional paid-in capital on the consolidated balance sheet as of September 30, 2021. The following table presents the amount of interest expense recognized related to the Convertible Notes: For the Three Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Contractual interest coupon $ 2,618 $ 2,618 $ 7,853 $ 7,853 Amortization of debt discount 4,820 4,527 14,236 13,372 Amortization of debt issuance costs 410 394 1,219 1,171 Total interest expense recognized $ 7,848 $ 7,539 $ 23,308 $ 22,396 Revolving Credit Facility We have a $200.0 million secured revolving credit facility that matures in December 2022 (the “Revolver”). Other Debt In October 2021, we refinanced a 747-8F term loan and received proceeds of $90.0 million from a financing with a seven-year |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The effective income tax rates were 23.4% and 23.5% for the three and nine months ended September 30, 2021, respectively. These rates differed from the U.S. statutory rate primarily due to state income taxes and certain expenses that are not deductible for tax purposes. The effective income tax rates were 32.8% and 30.7% for the three and nine months ended September 30, 2020, respectively. These rates differed from the U.S. statutory rate primarily due to nondeductible changes in the fair value of a customer warrant liability (see Note 5 to our Financial Statements). For interim accounting purposes, we recognize income taxes using an estimated annual effective tax rate. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 10. Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Inputs used to measure fair value are classified in the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Other inputs that are observable directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, or inactive quoted prices for identical assets or liabilities in inactive markets; Level 3 Unobservable inputs reflecting assumptions about the inputs used in pricing the asset or liability. We endeavor to utilize the best available information to measure fair value. The carrying value of Cash and cash equivalents, and Restricted cash is based on cost, which approximates fair value. Term loans and notes consist of term loans, notes guaranteed by the Export-Import Bank of the United States, a promissory note issued to the U.S. Treasury and equipment enhanced trust certificates. The fair values of these debt instruments and the Revolver are based on a discounted cash flow analysis using current borrowing rates for instruments with similar terms. The fair value of our Convertible Notes is based on unadjusted quoted market prices for these securities. The fair value of a customer warrant liability is based on a Monte Carlo simulation which requires inputs such as our common stock price, the warrant strike price, estimated common stock price volatility, and risk-free interest rate, among others. The following table summarizes the carrying value, estimated fair value and classification of our financial instruments as of: September 30, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 773,911 $ 773,911 $ 773,911 $ - $ - Restricted cash 10,230 10,230 10,230 - - $ 784,141 $ 784,141 $ 784,141 $ - $ - Liabilities Term loans and notes $ 1,622,536 $ 1,692,316 $ - $ - $ 1,692,316 Convertible notes (1) 474,261 679,138 679,138 - - $ 2,096,797 $ 2,371,454 $ 679,138 $ - $ 1,692,316 December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 845,589 $ 845,589 $ 845,589 $ - $ - Restricted cash 10,692 10,692 10,692 - - $ 856,281 $ 856,281 $ 856,281 $ - $ - Liabilities Term loans and notes $ 1,809,656 $ 1,909,942 $ - $ - $ 1,909,942 Convertible notes (1) 458,803 560,975 560,975 - - Customer warrant 31,470 31,470 - 31,470 - $ 2,299,929 $ 2,502,387 $ 560,975 $ 31,470 $ 1,909,942 (1) Carrying value is net of debt discounts and debt issuance costs (see Note 8). |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11. Segment Reporting During the first quarter of 2021, we changed our operating and reportable segments, reflecting changes in our business. We currently have the following two operating and reportable segments: Airline Operations and Dry Leasing. Previously, our operating and reportable segments were ACMI, Charter and Dry Leasing. As ACMI and Charter services have become more similar, our chief operating decision maker began assessing operating results and making resource allocation decisions for Airline Operations. Our Airline Operations segment provides outsourced aircraft operating services to customers including, express delivery providers, e-commerce retailers, the U.S. military, charter brokers, freight forwarders, airlines, manufacturers, sports teams and fans, and private charter customers. We generally provide these services on an ACMI, CMI and Charter basis. Most agreements provide us with guaranteed minimum revenues at predetermined rates, levels of operation and defined periods of time. We also provide certain services on a short-term basis. Our Dry Leasing segment provides for the leasing of cargo and passenger aircraft and engines to customers, and aircraft- and lease-management services. In our Dry Leasing segment, the customer operates, and is responsible for insuring and maintaining, the flight equipment. Other represents revenue for services that are not allocated to any segment, including administrative and management support services and flight simulator training. Each operating segment is separately reviewed by our chief operating decision maker to assess operating results and make resource allocation decisions. We do not aggregate our operating segments and, therefore, our operating segments are our reportable segments. We use an economic performance metric called Direct Contribution, which shows the profitability of each segment. Direct Contribution includes Income before income taxes and excludes the following: Special charges, Transaction-related expenses, nonrecurring items, Gain (losses) on the disposal of aircraft, Losses on early extinguishment of debt, Unrealized losses (gains) on financial instruments 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, other non-operating costs and CARES Act grant income. The following table sets forth Operating Revenue and Direct Contribution for our reportable segments reconciled to Operating Income and Income before income taxes: For the Three Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Operating Revenue: Airline Operations $ 980,714 $ 773,591 $ 2,762,815 $ 2,169,462 Dry Leasing 40,926 40,740 121,694 123,572 Customer incentive asset amortization (11,332 ) (9,858 ) (33,256 ) (28,414 ) Other 5,792 5,413 16,579 14,021 Total Operating Revenue $ 1,016,100 $ 809,886 $ 2,867,832 $ 2,278,641 Direct Contribution: Airline Operations $ 265,260 $ 179,441 $ 666,203 $ 482,995 Dry Leasing 10,435 9,627 31,765 30,046 Total Direct Contribution for Reportable Segments 275,695 189,068 697,968 513,041 Unallocated income and (expenses), net (120,219 ) (34,409 ) (284,218 ) (173,439 ) Loss on early extinguishment of debt - (7 ) - (81 ) Unrealized loss on financial instruments - (43,604 ) (113 ) (73,351 ) Special charge - (547 ) - (16,481 ) Transaction-related expenses (168 ) (490 ) (486 ) (2,286 ) Gain on disposal of aircraft 810 163 794 6,878 Income before income taxes 156,118 110,174 413,945 254,281 Add back (subtract): Interest income (159 ) (225 ) (559 ) (929 ) Interest expense 27,173 28,524 81,345 86,749 Capitalized interest (2,335 ) (203 ) (5,456 ) (528 ) Loss on early extinguishment of debt - 7 - 81 Unrealized loss on financial instruments - 43,604 113 73,351 Other (income) expense, net 3,136 (62,689 ) (41,174 ) (112,081 ) Operating Income $ 183,933 $ 119,192 $ 448,214 $ 300,924 The following table disaggregates our Airline Operations segment revenue by customer and service type: For the Three Months Ended September 30, 2021 September 30, 2020 Cargo Passenger Total Cargo Passenger Total Commercial customers $ 847,643 $ 8,835 $ 856,478 $ 635,375 $ 2,640 $ 638,015 AMC 29,874 94,362 124,236 57,952 77,624 135,576 Total Airline Operations Revenue $ 877,517 $ 103,197 $ 980,714 $ 693,327 $ 80,264 $ 773,591 For the Nine Months Ended September 30, 2021 September 30, 2020 Cargo Passenger Total Cargo Passenger Total Commercial customers $ 2,380,029 $ 11,714 $ 2,391,743 $ 1,773,803 $ 6,580 $ 1,780,383 AMC 124,258 246,814 371,072 170,188 218,891 389,079 Total Airline Operations Revenue $ 2,504,287 $ 258,528 $ 2,762,815 $ 1,943,991 $ 225,471 $ 2,169,462 Given the nature of our business and international flying, geographic information for revenue, long-lived assets and total assets is not presented because it is impracticable to do so. We are exposed to a concentration of revenue from the AMC, Polar and DHL (see above for the AMC and Note 4 for further discussion regarding Polar). No other customer accounted for more than 10.0% of our Total Operating Revenue. Revenue from DHL was $159.1 million and $487.2 million for the three and nine months ended September 30, 2021, respectively. Revenue from DHL was $150.8 million and $401.0 million for the three and nine months ended September 30, 2020, respectively. We have not experienced any credit issues with these customers. |
Labor and Legal Proceedings
Labor and Legal Proceedings | 9 Months Ended |
Sep. 30, 2021 | |
Labor And Legal Proceedings [Abstract] | |
Labor and Legal Proceedings | 12. Labor and Legal Proceedings Collective Bargaining Agreements Pilots of Atlas and Southern Air, and flight dispatchers of Atlas and Polar, are represented by the International Brotherhood of Teamsters (the “IBT”). We have a five-year We also had a five-year four-year The Company and the IBT commenced bargaining in early 2016. After approximately six years of bargaining for a new JCBA for the Atlas and Southern Air pilots, which included two arbitrators and two federal district courts ordering the IBT to comply with the merger provisions of the Atlas and Southern Air CBAs, the parties had reached tentative agreements on more than half of the JCBA. On February 15, 2021, the Company and IBT completed the contractually-mandated nine-month period for negotiations for a JCBA. All remaining open issues not resolved in negotiations were subject to binding interest arbitration between the Company and the IBT, which occurred in the latter half of March 2021 and concluded on April 1, 2021. On March 30, 2021, the IBT provided the Company with the integrated seniority list. On September 10, 2021, the Company and the IBT received the arbitration decision, which was the final step towards reaching a new JCBA for our Atlas and Southern Air pilots. The new competitive pay rates became effective as of September 1, 2021. The Company and the IBT are working together to implement the new work rules for the JCBA over the next several months. There are a few open items from the arbitrator’s decision on which the parties have differing interpretations. These items will be reviewed with the arbitrator, the Company and the IBT, and we expect them to be resolved over the next several months. Once these remaining items are resolved, the Company and the IBT will sign the new JCBA, which will be deemed effective pursuant to a date that will be agreed by the parties. While the ultimate outcome of these few open items could be material to our financial condition, results of operations or cash flows, it is not expected to be material. In October 2021, IBT Local 2750 elected new union leadership. While the Atlas and Southern Air pilots are represented by the same IBT Local 2750, they have remained two distinct pilot groups under separate CBAs. Now that the JCBA process is completed, the Southern Air pilots are expected to all transfer to Atlas on or about November 17, 2021 with the issuance of a single operating certificate for Atlas. Since April 2020, the Company and the IBT have entered into several Coronavirus Memorandum of Understandings (“COVID MOUs”) providing for various enhanced benefits and compensation (including pay for becoming fully vaccinated) for our pilots due to the challenges of flying and operating globally due to COVID-19. On September 30, 2021, in connection with implementing the new JCBA, the Company terminated all COVID MOUs in place with the IBT; however , the Company continues to offer additional compensation to its pilots for becoming fully vaccinated. We are subject to risks of work interruption or stoppage as permitted by the Railway Labor Act and may incur additional administrative expenses associated with union representation of our employees. Preliminary Injunction In late November 2017, the DC District Court issued a preliminary injunction preventing the IBT from “authorizing, encouraging, permitting, calling, engaging in, or continuing” any illegal pilot slowdown activities that were intended to gain leverage in pilot contract negotiations with the Company and requiring the IBT to meet its obligations under the Railway Labor Act. The IBT appealed to the DC Court of Appeals, which, in a unanimous three-judge panel, affirmed the DC District Court’s ruling. On May 22, 2020, the IBT filed a motion to dismiss the Company’s action for a preliminary injunction, which has been fully briefed. Now that the parties are in the process of completing the last phase of implementing the JCBA in accordance with the terms of the new arbitration award, the DC District Court stayed the preliminary injunction action and directed the parties to submit a joint status report in late November 2021. It is anticipated the action will be dismissed at such time. Matters Related to Alleged Pricing Practices In the Netherlands, Stichting Cartel Compensation, successor in interest to claims of various shippers, has filed suit in the district court in Amsterdam against British Airways, KLM, Martinair, Air France, Lufthansa and Singapore Airlines seeking recovery for damages purportedly arising from allegedly unlawful pricing practices of such defendants. In response, British Airways, KLM, Martinair, Air France and Lufthansa filed third-party indemnification lawsuits against Polar Air Cargo, LLC (“Old Polar”), a consolidated subsidiary of the Company, and Polar, seeking indemnification in the event the defendants are found to be liable in the main proceedings. Another defendant, Thai Airways, filed a similar indemnification claim. Activities in the case have focused on various procedural issues and rulings, some of which are awaiting court decisions on appeal. The ultimate outcome of the lawsuit is likely to be affected by a decision readopted by the European Commission in March 2017, finding EU competition law violations by British Airways, KLM, Martinair, Air France and Lufthansa, among others, but not Old Polar or Polar. If the Company, Old Polar or Polar were to incur an unfavorable outcome, such outcome may have a material adverse impact on our business, financial condition, results of operations or cash flows. We are unable to reasonably estimate a range of possible loss for this matter at this time. Brazilian Customs Claim Old Polar was cited for two alleged customs violations in Sao Paulo, Brazil, relating to shipments of goods dating back to 1999 and 2000. Each claim asserts that goods listed on the flight manifest of two separate Old Polar scheduled service flights were not on board the aircraft upon arrival and therefore were improperly brought into Brazil. The two claims, which also seek unpaid customs duties, taxes and penalties from the date of the alleged infraction, are approximately $3.8 million in aggregate based on September 30, 2021 exchange rates. In both cases, we believe that the amounts claimed are substantially overstated due to a calculation error when considering the type and amount of goods allegedly missing, among other things. In the pending claim for one of the cases, we have received an administrative decision dismissing the claim in its entirety, which remains subject to a mandatory appeal by the Brazil customs authorities. In the other case, we received an administrative decision in favor of the Brazil customs authorities, and we are in the process of appealing this decision to the Brazil courts. As required to defend such claims, we have made deposits pending resolution of these matters. The balance was $3.2 million as of September 30, 2021 and $3.3 million as of December 31, 2020, and is included in Deferred costs and other assets. We are currently defending these and other Brazilian customs claims and the ultimate disposition of these claims, either individually or in the aggregate, is not expected to materially affect our financial condition, results of operations or cash flows. Other In addition to the matters described in this note, we have certain other contingencies incident to the ordinary course of business. Unless disclosed otherwise, management does not expect that the ultimate disposition of such other contingencies or matters will materially affect our financial condition, results of operations or cash flows. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share Basic earnings per share (“EPS”) represents income divided by the weighted average number of common shares outstanding during the measurement period. Diluted EPS represents income divided by the weighted average number of common shares outstanding during the measurement period while also giving effect to all potentially dilutive common shares that were outstanding during the period using the treasury stock method. The calculations of basic and diluted EPS were as follows: For the Three Months Ended For the Nine Months Ended Numerator: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net Income $ 119,535 $ 74,054 $ 316,578 $ 176,319 Plus: Unrealized loss on financial instruments, net of tax - - 112 - Diluted net income $ 119,535 $ 74,054 $ 316,690 $ 176,319 Denominator: Basic EPS weighted average shares outstanding 29,023 26,135 28,844 26,077 Effect of dilutive warrants 584 237 611 82 Effect of dilutive convertible notes 717 - 442 - Effect of dilutive restricted stock 223 247 220 97 Diluted EPS weighted average shares outstanding 30,547 26,619 30,117 26,256 Earnings per share: Basic $ 4.12 $ 2.83 $ 10.98 $ 6.76 Diluted $ 3.91 $ 2.78 $ 10.52 $ 6.72 Antidilutive shares related to warrants issued in connection with our Convertible Notes and warrants issued to a customer that were out of the money and excluded from the calculation of diluted EPS were 3.0 million for the three and nine months ended September 30, 2021, and 15.6 million for the three and nine months ended September 30, 2020. Diluted shares reflect the potential dilution that could occur from restricted shares using the treasury stock method. The calculation of EPS does not include restricted share units and customer warrants in which performance or market conditions were not satisfied of 9.8 million for the three and nine months ended September 30, 2021 and 10.4 million for the three and nine months ended September 30, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 14. Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of Accumulated other comprehensive income (loss): Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2019 $ (2,827 ) $ 9 $ (2,818 ) Reclassification to interest expense 894 - 894 Tax effect (202 ) - (202 ) Balance as of September 30, 2020 $ (2,135 ) $ 9 $ (2,126 ) Balance as of December 31, 2020 $ (1,913 ) $ 9 $ (1,904 ) Reclassification to interest expense 774 - 774 Tax effect (184 ) - (184 ) Balance as of September 30, 2021 $ (1,323 ) $ 9 $ (1,314 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Heavy Maintenance | Heavy Maintenance Except as described in the paragraph below, we account for heavy maintenance costs for airframes and engines using the direct expense method. Under this method, heavy maintenance costs are charged to expense upon induction, based on our best estimate of the costs. We account for heavy maintenance costs for airframes and engines used in our Dry Leasing segment and engines used on our 747-8F and 777-200 aircraft using the deferral method. Under this method, we defer the expense recognition of scheduled heavy maintenance events, which are amortized over the shorter of the estimated period until the next scheduled heavy maintenance event is required or remaining lease term. Amortization of deferred maintenance expense included in Depreciation and amortization was $12.8 million and $37.1 million for the three and nine months ended September 30, 2021, respectively. Amortization of deferred maintenance expense was $12.5 million and $30.8 million for the three and nine months ended September 30, 2020, respectively. Deferred maintenance included within Deferred costs and other assets is as follows: Balance as of December 31, 2020 $ 191,303 Deferred maintenance costs 38,493 Amortization of deferred maintenance (37,070 ) Balance as of September 30, 2021 $ 192,726 |
Property and Equipment | Property and Equipment Committed expenditures to acquire aircraft and spare engines are expected to be $48.2 million for the remainder of 2021 and $458.3 million in 2022. These expenditures include our January 2021 agreement to purchase four 747-8F aircraft from The Boeing Company (“Boeing”) that are expected to be delivered from May through October 2022 and other agreements for spare engines. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted In August 2020, the Financial Accounting Standards Board amended its accounting guidance for certain financial instruments with characteristics of liabilities and equity, including convertible debt instruments. For convertible debt with a cash conversion feature, the amended guidance removes the current accounting model to separately account for the liability and equity components, which currently results in the amortization of a debt discount to interest expense. Under this amended guidance, such convertible debt will be accounted for as a single debt instrument with no amortization of a debt discount to interest expense, unless certain other conditions are met. The amended guidance also requires the use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. The amended guidance is effective as of the beginning of 2022. The two permitted transition methods under the guidance are the full retrospective approach, under which the guidance is applied to all periods presented, or the modified retrospective approach, under which the guidance is applied only to the most current period presented. We will adopt this amended guidance on its required effective date of January 1, 2022. While we are still assessing the impact the amended guidance will have on our financial statements, we expect the amount previously allocated to the equity component will be reclassified to debt. In addition, the amended guidance is expected to result in a material increase in net income and reduction in interest expense, as well as a material reduction in diluted earnings per share resulting from an increase in the number of shares included in the denominator. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Deferred Maintenance | Deferred maintenance included within Deferred costs and other assets is as follows: Balance as of December 31, 2020 $ 191,303 Deferred maintenance costs 38,493 Amortization of deferred maintenance (37,070 ) Balance as of September 30, 2021 $ 192,726 |
Related Parties (Tables)
Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Polar [Member] | |
Related Party Transaction [Line Items] | |
Summary of Transactions with Related Party | The following table summarizes our transactions with Polar: For the Three Months Ended For the Nine Months Ended Revenue and Expenses: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Revenue from Polar $ 81,119 $ 80,876 $ 234,036 $ 239,968 Ground handling and airport fees to Polar 1,096 796 2,917 2,389 Accounts receivable/payable as of: September 30, 2021 December 31, 2020 Receivables from Polar $ 9,115 $ 31,079 Payables to Polar 8,169 3,477 Aggregate Carrying Value of Polar Investment as of: September 30, 2021 December 31, 2020 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 |
Dry Leasing Joint Venture [Member] | |
Related Party Transaction [Line Items] | |
Summary of Transactions with Related Party | The following table summarizes our transactions with our dry leasing joint venture: For the Three Months Ended For the Nine Months Ended Revenue and Expenses: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Revenue from dry leasing joint venture $ 288 $ - $ 423 $ - Aircraft rent to dry leasing joint venture 2,250 - 6,750 - Aggregate Carrying Value of Joint Venture as of: September 30, 2021 December 31, 2020 Aggregate Carrying Value of Dry Leasing Joint Venture $ 6,293 $ 4,438 |
Amazon (Tables)
Amazon (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Warrants And Rights Note Disclosure [Abstract] | |
Summary of Customer Incentive Asset within Deferred Costs and Other Assets | Customer incentive asset included within Deferred costs and other assets is as follows: Balance at December 31, 2020 $ 125,276 Initial value for estimate of vested or expected to vest warrants 10,759 Amortization of customer incentive asset (33,256 ) Balance as of September 30, 2021 $ 102,779 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Financial Information [Abstract] | |
Summary of Allowance for Expected Credit Losses | Allowance for expected credit losses, included within Accounts receivable, is as follows: Balance as of December 31, 2020 $ 1,233 Bad debt recovery (377 ) Amounts written off, net of other items 2,883 Balance as of September 30, 2021 $ 3,739 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of: September 30, 2021 December 31, 2020 Salaries, wages and benefits $ 167,820 $ 136,753 Maintenance 119,967 142,374 Customer maintenance reserves 83,266 93,092 Deferred revenue 63,799 41,665 Aircraft fuel 30,066 24,578 Deferred grant income - 40,944 Other 126,290 103,754 Accrued liabilities $ 591,208 $ 583,160 |
Summary of Changes in Deferred Revenue | Balance as of December 31, 2020 $ 30,291 Revenue recognized (229,325 ) Amounts collected or invoiced 252,076 Balance as of September 30, 2021 $ 53,042 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: September 30, 2021 December 31, 2020 Cash and cash equivalents $ 773,911 $ 845,589 Restricted cash 10,230 10,692 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 784,141 $ 856,281 |
Debt and Finance Leases (Tables
Debt and Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | The Convertible Notes consisted of the following as of September 30, 2021: 2015 Convertible Notes 2017 Convertible Notes Remaining life in months 8 32 Liability component: Gross proceeds $ 224,500 $ 289,000 Less: debt discount, net of amortization (6,128 ) (30,235 ) Less: debt issuance cost, net of amortization (560 ) (2,316 ) Net carrying amount $ 217,812 $ 256,449 Equity component (1) $ 52,903 $ 70,140 (1) Included in Additional paid-in capital on the consolidated balance sheet as of September 30, 2021. |
Summary of Interest Expense Recognized | The following table presents the amount of interest expense recognized related to the Convertible Notes: For the Three Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Contractual interest coupon $ 2,618 $ 2,618 $ 7,853 $ 7,853 Amortization of debt discount 4,820 4,527 14,236 13,372 Amortization of debt issuance costs 410 394 1,219 1,171 Total interest expense recognized $ 7,848 $ 7,539 $ 23,308 $ 22,396 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments | The following table summarizes the carrying value, estimated fair value and classification of our financial instruments as of: September 30, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 773,911 $ 773,911 $ 773,911 $ - $ - Restricted cash 10,230 10,230 10,230 - - $ 784,141 $ 784,141 $ 784,141 $ - $ - Liabilities Term loans and notes $ 1,622,536 $ 1,692,316 $ - $ - $ 1,692,316 Convertible notes (1) 474,261 679,138 679,138 - - $ 2,096,797 $ 2,371,454 $ 679,138 $ - $ 1,692,316 December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 845,589 $ 845,589 $ 845,589 $ - $ - Restricted cash 10,692 10,692 10,692 - - $ 856,281 $ 856,281 $ 856,281 $ - $ - Liabilities Term loans and notes $ 1,809,656 $ 1,909,942 $ - $ - $ 1,909,942 Convertible notes (1) 458,803 560,975 560,975 - - Customer warrant 31,470 31,470 - 31,470 - $ 2,299,929 $ 2,502,387 $ 560,975 $ 31,470 $ 1,909,942 (1) Carrying value is net of debt discounts and debt issuance costs (see Note 8). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting Tables [Abstract] | |
Operating Revenue and Direct Contribution For Our Reportable Business Segments | The following table sets forth Operating Revenue and Direct Contribution for our reportable segments reconciled to Operating Income and Income before income taxes: For the Three Months Ended For the Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Operating Revenue: Airline Operations $ 980,714 $ 773,591 $ 2,762,815 $ 2,169,462 Dry Leasing 40,926 40,740 121,694 123,572 Customer incentive asset amortization (11,332 ) (9,858 ) (33,256 ) (28,414 ) Other 5,792 5,413 16,579 14,021 Total Operating Revenue $ 1,016,100 $ 809,886 $ 2,867,832 $ 2,278,641 Direct Contribution: Airline Operations $ 265,260 $ 179,441 $ 666,203 $ 482,995 Dry Leasing 10,435 9,627 31,765 30,046 Total Direct Contribution for Reportable Segments 275,695 189,068 697,968 513,041 Unallocated income and (expenses), net (120,219 ) (34,409 ) (284,218 ) (173,439 ) Loss on early extinguishment of debt - (7 ) - (81 ) Unrealized loss on financial instruments - (43,604 ) (113 ) (73,351 ) Special charge - (547 ) - (16,481 ) Transaction-related expenses (168 ) (490 ) (486 ) (2,286 ) Gain on disposal of aircraft 810 163 794 6,878 Income before income taxes 156,118 110,174 413,945 254,281 Add back (subtract): Interest income (159 ) (225 ) (559 ) (929 ) Interest expense 27,173 28,524 81,345 86,749 Capitalized interest (2,335 ) (203 ) (5,456 ) (528 ) Loss on early extinguishment of debt - 7 - 81 Unrealized loss on financial instruments - 43,604 113 73,351 Other (income) expense, net 3,136 (62,689 ) (41,174 ) (112,081 ) Operating Income $ 183,933 $ 119,192 $ 448,214 $ 300,924 |
Schedule of Disaggregated Airline Operations Segment Revenue by Customer and Service Type | The following table disaggregates our Airline Operations segment revenue by customer and service type: For the Three Months Ended September 30, 2021 September 30, 2020 Cargo Passenger Total Cargo Passenger Total Commercial customers $ 847,643 $ 8,835 $ 856,478 $ 635,375 $ 2,640 $ 638,015 AMC 29,874 94,362 124,236 57,952 77,624 135,576 Total Airline Operations Revenue $ 877,517 $ 103,197 $ 980,714 $ 693,327 $ 80,264 $ 773,591 For the Nine Months Ended September 30, 2021 September 30, 2020 Cargo Passenger Total Cargo Passenger Total Commercial customers $ 2,380,029 $ 11,714 $ 2,391,743 $ 1,773,803 $ 6,580 $ 1,780,383 AMC 124,258 246,814 371,072 170,188 218,891 389,079 Total Airline Operations Revenue $ 2,504,287 $ 258,528 $ 2,762,815 $ 1,943,991 $ 225,471 $ 2,169,462 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted EPS | The calculations of basic and diluted EPS were as follows: For the Three Months Ended For the Nine Months Ended Numerator: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net Income $ 119,535 $ 74,054 $ 316,578 $ 176,319 Plus: Unrealized loss on financial instruments, net of tax - - 112 - Diluted net income $ 119,535 $ 74,054 $ 316,690 $ 176,319 Denominator: Basic EPS weighted average shares outstanding 29,023 26,135 28,844 26,077 Effect of dilutive warrants 584 237 611 82 Effect of dilutive convertible notes 717 - 442 - Effect of dilutive restricted stock 223 247 220 97 Diluted EPS weighted average shares outstanding 30,547 26,619 30,117 26,256 Earnings per share: Basic $ 4.12 $ 2.83 $ 10.98 $ 6.76 Diluted $ 3.91 $ 2.78 $ 10.52 $ 6.72 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the components of Accumulated other comprehensive income (loss): Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2019 $ (2,827 ) $ 9 $ (2,818 ) Reclassification to interest expense 894 - 894 Tax effect (202 ) - (202 ) Balance as of September 30, 2020 $ (2,135 ) $ 9 $ (2,126 ) Balance as of December 31, 2020 $ (1,913 ) $ 9 $ (1,904 ) Reclassification to interest expense 774 - 774 Tax effect (184 ) - (184 ) Balance as of September 30, 2021 $ (1,323 ) $ 9 $ (1,314 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - Polar [Member] | 9 Months Ended |
Sep. 30, 2021 | |
Basis Of Presentation [Line Items] | |
Equity interest | 51.00% |
Voting interest | 75.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2021Aircraftss | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2022USD ($) | |
Significant Accounting Policies [Line Items] | |||||||
Deferred maintenance amortization expense | $ 12,800 | $ 12,500 | $ 37,070 | $ 30,800 | |||
Aircraft 747-8F [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Number of aircraft purchase | Aircraftss | 4 | ||||||
Forecast [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Committed expenditures to acquire aircraft and spare engines | $ 48,200 | $ 458,300 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Deferred Maintenance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Beginning Balance | $ 191,303 | |||
Deferred maintenance costs | 38,493 | |||
Amortization of deferred maintenance | $ (12,800) | $ (12,500) | (37,070) | $ (30,800) |
Ending Balance | $ 192,726 | $ 192,726 |
COVID-19 Pandemic - Additional
COVID-19 Pandemic - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Operating Revenue | $ 1,016,100 | $ 809,886 | $ 2,867,832 | $ 2,278,641 | |
Payroll Support Program Agreement [Member] | Grant [Member] | Other Income (Expense), Net [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Operating Revenue | $ 40,900 | $ 64,200 | $ 84,400 | ||
Payroll Support Program Agreement [Member] | US Treasury [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Number of warrant exercised | 0 | 0 | |||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Maximum [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Number of warrants issued to acquire common stock | 625,452 | 625,452 | |||
Commercial Paper [Member] | Payroll Support Program Agreement [Member] | US Treasury [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Proceeds from line of credit | $ 199,800 |
Related Parties - Polar - Addit
Related Parties - Polar - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Polar [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity interest | 51.00% | 51.00% | ||
Voting interest | 75.00% | |||
Polar [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue recognized | $ 28.3 | $ 48 | $ 151.4 | $ 158.5 |
DHL [Member] | Polar [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity interest | 49.00% | 49.00% | ||
Voting interest | 25.00% |
Related Parties - Summary of Tr
Related Parties - Summary of Transactions with Related Party (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Aircraft rent | $ 15,485 | $ 24,239 | $ 53,928 | $ 72,522 | |
Polar [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related party | 81,119 | 80,876 | 234,036 | 239,968 | |
Ground handling and airport fees to Polar | 1,096 | 796 | 2,917 | 2,389 | |
Receivables from related party | 9,115 | 9,115 | $ 31,079 | ||
Payables to related party | 8,169 | 8,169 | 3,477 | ||
Aggregate Carrying Value of Investment/Joint Venture | 4,870 | 4,870 | 4,870 | ||
Dry Leasing Joint Venture [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related party | 288 | 0 | 423 | 0 | |
Aggregate Carrying Value of Investment/Joint Venture | 6,293 | 6,293 | $ 4,438 | ||
Aircraft rent | $ 2,250 | $ 0 | $ 6,750 | $ 0 |
Related Parties - Dry Leasing J
Related Parties - Dry Leasing Joint Venture - Additional Information (Details) - Dry Leasing Joint Venture [Member] - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | ||
Voting interest | 10.00% | |
Capital contributions | $ 6.8 | |
Third party unguaranteed obligations amount | 56.8 | |
Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Commitment to capital contributions | $ 40 |
Related Parties - Parts Joint V
Related Parties - Parts Joint Venture - Additional Information (Details) - Parts Joint Venture [Member] - Variable Interest Entity Not Primary Beneficiary [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Voting interest | 50.00% | 50.00% |
Investment in joint venture | $ 18.9 | $ 21 |
Receivables from related party | 0.1 | 0.2 |
Payables to related party | $ 1.3 | $ 0.9 |
Amazon - Additional Information
Amazon - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2021shares | Oct. 31, 2020shares | Mar. 31, 2019USD ($)$ / sharesshares | May 31, 2016USD ($)Transaction$ / sharesshares | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Class Of Warrant Or Right [Line Items] | |||||||||
Issuance of shares related to settlement of warrant | 1,280,450 | ||||||||
Revenues | $ | $ 1,016,100,000 | $ 809,886,000 | $ 2,867,832,000 | $ 2,278,641,000 | |||||
Amortization of customer incentive asset | $ | 11,300,000 | 9,900,000 | 33,256,000 | 28,400,000 | |||||
Warrant liability unrealized losses | $ | $ 43,600,000 | $ 73,400,000 | |||||||
Fair value of warrant liability | $ | $ 0 | $ 0 | $ 31,500,000 | ||||||
Warrant A [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Right to acquire outstanding common shares | up to 20% of our outstanding common shares, as of the date of the agreements | ||||||||
Exercise price of warrants exercisable | $ / shares | $ 37.34 | ||||||||
Warrant for number of shares fully vested | 7,500,000 | ||||||||
Warrants exercised in number of transaction | Transaction | 2 | ||||||||
Warrant liability unrealized losses | $ | $ 100,000 | ||||||||
Common Stock [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Issuance of shares related to settlement of warrant | 1,375,421 | ||||||||
Warrants exercised through cashless issuance of shares | 1,210,741 | ||||||||
Warrants exercised through cashless issuance of shares | 69,709 | ||||||||
Warrant B [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Exercise price of warrants exercisable | $ / shares | $ 37.34 | ||||||||
Additional warrant to acquire outstanding shares | up to an additional 10% of our outstanding common shares, as of the date of the agreements | ||||||||
Additional warrant to buy number of shares vesting | 3,770,000 | ||||||||
Vesting increments of Amazon warrants | 37,660 | ||||||||
Revenues | $ | $ 4,200,000 | ||||||||
Warrant vested | 828,520 | 828,520 | |||||||
Additional warrant vesting year | 2023-05 | ||||||||
Warrant C [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Right to acquire outstanding common shares | up to an additional 9.9% of our outstanding common shares, as of the date of the agreements | ||||||||
Exercise price of warrants exercisable | $ / shares | $ 52.67 | ||||||||
Vesting increments of Amazon warrants | 45,623 | ||||||||
Revenues | $ | $ 6,900,000 | ||||||||
Warrant vested | 0 | 0 | |||||||
Incremental warrant to buy number of shares vesting. | 6,660,000 | ||||||||
Warrant vesting year | 2026-03 | ||||||||
Maximum [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Amazon entitled to vote shares of it owns of outstanding common shares percentage | 14.90% | ||||||||
Maximum [Member] | Warrant A [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant providing right to acquire outstanding common shares percentage | 20.00% | ||||||||
Maximum [Member] | Warrant B [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Percentage of additional warrant to acquire outstanding common shares | 10.00% | ||||||||
Revenues | $ | $ 420,000,000 | ||||||||
Maximum [Member] | Warrant C [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant providing right to acquire outstanding common shares percentage | 9.90% | ||||||||
Revenues | $ | $ 1,000,000,000 | ||||||||
Dry Leases [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Lease term | 10 years | 10 years | |||||||
CMI Operation [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Lease term | 7 years | 7 years | 7 years | ||||||
Lease term option to extend | true | true | |||||||
Lease term of extension | 10 years | 10 years | 10 years |
Amazon - Summary of Customer In
Amazon - Summary of Customer Incentive Asset within Deferred Costs and Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Warrants And Rights Note Disclosure [Abstract] | ||||
Balance at December 31, 2020 | $ 125,276 | |||
Initial value for estimate of vested or expected to vest warrants | 10,759 | |||
Amortization of customer incentive asset | $ (11,300) | $ (9,900) | (33,256) | $ (28,400) |
Balance as of September 30, 2021 | $ 102,779 | $ 102,779 |
Supplemental Financial Inform_3
Supplemental Financial Information - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Supplemental Financial Information [Abstract] | ||
Accounts receivable related to customer contracts excluding dry leasing contracts | $ 253.2 | $ 195.6 |
Supplemental Financial Inform_4
Supplemental Financial Information - Summary of Allowance for Expected Credit Losses (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Supplemental Financial Information [Abstract] | |
Balance as of December 31, 2020 | $ 1,233 |
Bad debt recovery | (377) |
Amounts written off, net of other items | 2,883 |
Balance as of September 30, 2021 | $ 3,739 |
Supplemental Financial Inform_5
Supplemental Financial Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Supplemental Financial Information [Abstract] | ||
Salaries, wages and benefits | $ 167,820 | $ 136,753 |
Maintenance | 119,967 | 142,374 |
Customer maintenance reserves | 83,266 | 93,092 |
Deferred revenue | 63,799 | 41,665 |
Aircraft fuel | 30,066 | 24,578 |
Deferred grant income | 0 | 40,944 |
Other | 126,290 | 103,754 |
Accrued liabilities | $ 591,208 | $ 583,160 |
Supplemental Financial Inform_6
Supplemental Financial Information - Summary of Changes in Deferred Revenue (Details) - Non-Dry Lease Revenue Contracts with Customers [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Revenue Recognition [Line Items] | |
Balance as of December 31, 2020 | $ 30,291 |
Revenue recognized | (229,325) |
Amounts collected or invoiced | 252,076 |
Balance as of September 30, 2021 | $ 53,042 |
Supplemental Financial Inform_7
Supplemental Financial Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Supplemental Financial Information [Abstract] | ||||
Cash and cash equivalents | $ 773,911 | $ 845,589 | ||
Restricted cash | 10,230 | 10,692 | ||
Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows | $ 784,141 | $ 856,281 | $ 729,333 | $ 113,430 |
Assets Held For Sale and Othe_2
Assets Held For Sale and Other Income - Additional Information (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021USD ($)Engine | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Net proceeds from sale of aircraft | $ 9,470 | $ 45,660 | |
Prepaid Expense, Assets Held for Sale and Other Current Assets [Member] | |||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Carrying value of asset held for sale | $ 5,500 | $ 14,100 | |
Certain Spare CF6-80 Engines [Member] | |||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Number of aircraft held for sale | Engine | 2 | ||
Aircraft Engines | Other Income (Expense), Net [Member] | |||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Aircraft rent refunds | $ 4,600 | $ 32,900 |
Debt and Finance Leases - Term
Debt and Finance Leases - Term Loans - Additional Information (Details) - Unsecured Term Loan [Member] - USD ($) $ in Millions | 1 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 7.8 | $ 16.2 |
Debt instrument maturity | 2026-05 | 2026-01 |
Debt instrument, term | 5 years | 5 years |
Debt instrument fixed interest rate | 0.91% | 0.93% |
Debt and Finance Leases - Finan
Debt and Finance Leases - Finance Lease - Additional Information (Details) $ in Millions | 1 Months Ended | 4 Months Ended | 9 Months Ended |
Oct. 31, 2021Aircraftss | Aug. 31, 2021USD ($)LeasedAircraft | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||
Number of aircraft operated under operating lease | LeasedAircraft | 8 | ||
Lessee, operating lease, description | In May, June and August 2021, we amended eight operating leases for 747-400 freighter aircraft to acquire the aircraft at or prior to the end of the lease terms, resulting in additional commitments of $123.1 million and a change in classification to finance leases. Three of the aircraft were acquired in October 2021 with the remainder to be acquired from March to December 2022 | ||
Lessee finance lease liability not yet commenced | $ | $ 123.1 | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Lessee operating lease term | 2022-12 | ||
Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Number of businesses acquired | Aircraftss | 3 |
Debt and Finance Leases - Conve
Debt and Finance Leases - Convertible Notes - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
May 31, 2017 | Jun. 30, 2015 | Sep. 30, 2021 | |
2017 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible notes aggregate principal amount | $ 289,000 | $ 289,000 | |
Convertible notes, interest rate | 1.88% | ||
Convertible notes, date of maturity | Jun. 1, 2024 | ||
2015 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible notes aggregate principal amount | $ 224,500 | $ 224,500 | |
Convertible notes, interest rate | 2.25% | ||
Convertible notes, date of maturity | Jun. 1, 2022 |
Debt and Finance Leases - Sched
Debt and Finance Leases - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | May 31, 2017 | Jun. 30, 2015 | ||
2015 Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Remaining life in months | 8 months | |||
Gross proceeds | $ 224,500 | $ 224,500 | ||
Less: debt discount, net of amortization | (6,128) | |||
Less: debt issuance cost, net of amortization | (560) | |||
Net carrying amount | 217,812 | |||
Equity component | [1] | $ 52,903 | ||
2017 Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Remaining life in months | 32 months | |||
Gross proceeds | $ 289,000 | $ 289,000 | ||
Less: debt discount, net of amortization | (30,235) | |||
Less: debt issuance cost, net of amortization | (2,316) | |||
Net carrying amount | 256,449 | |||
Equity component | [1] | $ 70,140 | ||
[1] | Included in Additional paid-in capital on the consolidated balance sheet as of September 30, 2021. |
Debt and Finance Leases - Summa
Debt and Finance Leases - Summary of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Total interest expense recognized | $ 27,173 | $ 28,524 | $ 81,345 | $ 86,749 |
Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Contractual interest coupon | 2,618 | 2,618 | 7,853 | 7,853 |
Amortization of debt discount | 4,820 | 4,527 | 14,236 | 13,372 |
Amortization of debt issuance costs | 410 | 394 | 1,219 | 1,171 |
Total interest expense recognized | $ 7,848 | $ 7,539 | $ 23,308 | $ 22,396 |
Debt and Finance Leases - Revol
Debt and Finance Leases - Revolving Credit Facility - Additional Information (Details) - Revolver [Member] | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 200,000,000 |
Debt instrument maturity | 2022-12 |
Outstanding balance | $ 0 |
Unused availability | $ 200,000,000 |
Debt and Finance Leases - Other
Debt and Finance Leases - Other Debt - Additional Information (Details) - Subsequent Event [Member] - 747-8F Term Loan [Member] $ in Millions | 1 Months Ended |
Oct. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Proceeds from other debt | $ 90 |
Debt instrument, term | 7 years |
Repayments of other debt | $ 50.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rates | 23.40% | 32.80% | 23.50% | 30.70% |
Financial Instruments - Summary
Financial Instruments - Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Restricted cash | $ 10,230 | $ 10,692 | |
Liabilities | |||
Customer warrant | 102,779 | 125,276 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Assets | |||
Cash and cash equivalents | 773,911 | 845,589 | |
Restricted cash | 10,230 | 10,692 | |
Financial instruments assets | 784,141 | 856,281 | |
Liabilities | |||
Term loans and notes | 1,622,536 | 1,809,656 | |
Convertible notes | [1] | 474,261 | 458,803 |
Financial instruments liabilities | 2,096,797 | 2,299,929 | |
Customer warrant | 31,470 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Assets | |||
Cash and cash equivalents | 773,911 | 845,589 | |
Restricted cash | 10,230 | 10,692 | |
Financial instruments assets | 784,141 | 856,281 | |
Liabilities | |||
Term loans and notes | 1,692,316 | 1,909,942 | |
Convertible notes | [1] | 679,138 | 560,975 |
Financial instruments liabilities | 2,371,454 | 2,502,387 | |
Customer warrant | 31,470 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents | 773,911 | 845,589 | |
Restricted cash | 10,230 | 10,692 | |
Financial instruments assets | 784,141 | 856,281 | |
Liabilities | |||
Term loans and notes | 0 | 0 | |
Convertible notes | [1] | 679,138 | 560,975 |
Financial instruments liabilities | 679,138 | 560,975 | |
Customer warrant | 0 | ||
Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Financial instruments assets | 0 | 0 | |
Liabilities | |||
Term loans and notes | 0 | 0 | |
Convertible notes | [1] | 0 | 0 |
Financial instruments liabilities | 0 | 31,470 | |
Customer warrant | 31,470 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Financial instruments assets | 0 | 0 | |
Liabilities | |||
Term loans and notes | 1,692,316 | 1,909,942 | |
Convertible notes | [1] | 0 | 0 |
Financial instruments liabilities | $ 1,692,316 | 1,909,942 | |
Customer warrant | $ 0 | ||
[1] | Carrying value is net of debt discounts and debt issuance costs (see Note 8). |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Segment | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Number of reportable segments | Segment | 2 | |||
Operating Revenue | $ | $ 1,016,100 | $ 809,886 | $ 2,867,832 | $ 2,278,641 |
DHL [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | $ | $ 159,100 | $ 150,800 | $ 487,200 | $ 401,000 |
Segment Reporting - Operating R
Segment Reporting - Operating Revenue and Direct Contribution For Our Reportable Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Revenue: | ||||
Customer incentive asset amortization | $ (11,332) | $ (9,858) | $ (33,256) | $ (28,414) |
Other | 5,792 | 5,413 | 16,579 | 14,021 |
Total Operating Revenue | 1,016,100 | 809,886 | 2,867,832 | 2,278,641 |
Direct Contribution: | ||||
Total Direct Contribution for Reportable Segments | 275,695 | 189,068 | 697,968 | 513,041 |
Unallocated income and (expenses), net | (120,219) | (34,409) | (284,218) | (173,439) |
Loss on early extinguishment of debt | 0 | (7) | 0 | (81) |
Unrealized loss on financial instruments | 0 | (43,604) | (113) | (73,351) |
Special charge | 0 | (547) | 0 | (16,481) |
Transaction-related expenses | (168) | (490) | (486) | (2,286) |
Gain on disposal of aircraft | 810 | 163 | 794 | 6,878 |
Income before income taxes | 156,118 | 110,174 | 413,945 | 254,281 |
Interest income | (159) | (225) | (559) | (929) |
Interest expense | 27,173 | 28,524 | 81,345 | 86,749 |
Capitalized interest | (2,335) | (203) | (5,456) | (528) |
Loss on early extinguishment of debt | 0 | 7 | 0 | 81 |
Unrealized loss on financial instruments | 0 | 43,604 | 113 | 73,351 |
Other (income) expense, net | 3,136 | (62,689) | (41,174) | (112,081) |
Operating Income | 183,933 | 119,192 | 448,214 | 300,924 |
Airline Operations [Member] | ||||
Operating Revenue: | ||||
Operating Revenue | 980,714 | 773,591 | 2,762,815 | 2,169,462 |
Direct Contribution: | ||||
Total Direct Contribution for Reportable Segments | 265,260 | 179,441 | 666,203 | 482,995 |
Dry Leasing [Member] | ||||
Operating Revenue: | ||||
Operating Revenue | 40,926 | 40,740 | 121,694 | 123,572 |
Direct Contribution: | ||||
Total Direct Contribution for Reportable Segments | $ 10,435 | $ 9,627 | $ 31,765 | $ 30,046 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Disaggregated Airline Operations Segment Revenue by Customer and Service Type (Details) - Airline Operations [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | $ 980,714 | $ 773,591 | $ 2,762,815 | $ 2,169,462 |
Commercial Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | 856,478 | 638,015 | 2,391,743 | 1,780,383 |
AMC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | 124,236 | 135,576 | 371,072 | 389,079 |
Cargo [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | 877,517 | 693,327 | 2,504,287 | 1,943,991 |
Cargo [Member] | Commercial Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | 847,643 | 635,375 | 2,380,029 | 1,773,803 |
Cargo [Member] | AMC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | 29,874 | 57,952 | 124,258 | 170,188 |
Passenger [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | 103,197 | 80,264 | 258,528 | 225,471 |
Passenger [Member] | Commercial Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | 8,835 | 2,640 | 11,714 | 6,580 |
Passenger [Member] | AMC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Airline Operations Revenue | $ 94,362 | $ 77,624 | $ 246,814 | $ 218,891 |
Labor and Legal Proceedings - A
Labor and Legal Proceedings - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Brazilian Customs Claim [Member] | ||
Loss Contingencies [Line Items] | ||
Brazilian claims in the aggregate | $ 3.8 | |
Amounts on deposit for Brazilian claims included in deferred costs and other assets | $ 3.2 | $ 3.3 |
Atlas and Polar Dispatchers [Member] | ||
Loss Contingencies [Line Items] | ||
Collective bargaining agreement period | 5 years | |
Atlas Pilots [Member] | ||
Loss Contingencies [Line Items] | ||
Collective bargaining agreement period | 5 years | |
Southern Air Pilots [Member] | ||
Loss Contingencies [Line Items] | ||
Collective bargaining agreement period | 4 years |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net Income | $ 119,535 | $ 74,054 | $ 316,578 | $ 176,319 |
Plus: Unrealized loss on financial instruments, net of tax | 0 | 0 | 112 | 0 |
Diluted net income | $ 119,535 | $ 74,054 | $ 316,690 | $ 176,319 |
Denominator: | ||||
Basic EPS weighted average shares outstanding | 29,023 | 26,135 | 28,844 | 26,077 |
Effect of dilutive warrants | 584 | 237 | 611 | 82 |
Effect of dilutive convertible notes | 717 | 0 | 442 | 0 |
Effect of dilutive restricted stock | 223 | 247 | 220 | 97 |
Diluted EPS weighted average shares outstanding | 30,547 | 26,619 | 30,117 | 26,256 |
Earnings per share: | ||||
Basic | $ 4.12 | $ 2.83 | $ 10.98 | $ 6.76 |
Diluted | $ 3.91 | $ 2.78 | $ 10.52 | $ 6.72 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Restricted shares and units in which performance or market conditions were not satisfied | 9.8 | 10.4 | 9.8 | 10.4 |
Warrants [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation of diluted EPS | 3 | 15.6 | 3 | 15.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 2,497,054 | $ 1,930,367 | $ 2,261,539 | $ 1,792,179 |
Reclassification to interest expense | 250 | 290 | 774 | 894 |
Tax effect | (184) | (202) | ||
Ending Balance | 2,624,264 | 2,017,423 | 2,624,264 | 2,017,423 |
Interest Rate Derivatives [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (1,913) | (2,827) | ||
Reclassification to interest expense | 774 | 894 | ||
Tax effect | (184) | (202) | ||
Ending Balance | (1,323) | (2,135) | (1,323) | (2,135) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 9 | 9 | ||
Reclassification to interest expense | 0 | 0 | ||
Tax effect | 0 | 0 | ||
Ending Balance | 9 | 9 | 9 | 9 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (1,504) | (2,347) | (1,904) | (2,818) |
Ending Balance | $ (1,314) | $ (2,126) | $ (1,314) | $ (2,126) |