[ATLAS AIR
WORLDWIDE HOLDINGS LOGO] NEWS RELEASE
-----------------------------------------------------------------
2000 WESTCHESTER AVENUE, PURCHASE, NEW YORK, 10577 o 914-701-8400
FOR IMMEDIATE RELEASE:
Contacts: Regina Milano (Media) 914-701-8417
Dan Loh (Investors) 914-701-8210
ATLAS AIR WORLDWIDE HOLDINGS, INC.
4Q06 PRETAX EARNINGS EXPECTED TO EXCEED $60 MILLION
BUSINESS REPOSITIONED TO DELIVER 2007 PRETAX EARNINGS IN EXCESS OF $110 MILLION
KEY TRANSITION QUARTER COMPLETED - 3Q06 NET INCOME $7.1 MILLION, $0.34 SHARE
AAWW TO HOST CONFERENCE CALL, WEBCAST AT 11 A.M. EASTERN TIME
PURCHASE, N.Y., NOVEMBER 8, 2006 - Atlas Air Worldwide Holdings, Inc. (AAWW)
(Nasdaq: AAWW), a leading provider of global air cargo services, announced today
that it is on pace in the fourth quarter of 2006 to outperform fourth-quarter
2005 earnings, following three quarters of underperformance versus the
comparable 2005 quarters.
For the quarter ended September 30, 2006, AAWW reported net income of $7.1
million, or $0.34 per diluted share, on revenues of $361.1 million. Operating
income of $32.9 million in the quarter included a nonrecurring gain of $6.2
million on the disposal of aircraft. In addition, pretax income of $8.4 million
reflected both the gain on disposal of aircraft and a one-time, non-cash expense
of $12.5 million associated with the early retirement of outstanding debt.
"We began 2006 with a cost structure and fleet sized for 2005's unusually high
military volumes," said William J. Flynn, President and Chief Executive Officer
of AAWW. "We have since strategically repositioned the Company for margin
improvement and earnings growth, and we're going into 2007 with our fleet and
cost structure scaled to fit more sustainable business opportunities that are
less dependent on military volumes. Our fourth-quarter 2006 forecast for pretax
income in excess of $60 million compares favorably with $45 million in the
fourth quarter of 2005. We've achieved our most important 2006 goal: sustainable
levels of profitability."
Bolstered by its military business, AAWW posted pretax earnings of $123.8
million for the full year 2005, substantially ahead of expectations. "We
determined that 2005 levels of military business were unlikely to continue," Mr.
Flynn explained. "By optimizing our fleet and cost structure and capturing new
opportunities like our recently announced DHL transaction, we can move beyond
2005's profitability in years to come. We expect pretax earnings to exceed $110
million in 2007, closer to 2005's pretax earnings but on lower revenues,
resulting in higher margins."
Mr. Flynn said, "The market is strong for ACMI, where we are the world's
technology leader. We have strengthened our scheduled-service business through
network optimization and have leveraged Polar Air Cargo's strategic route
structure, optimal assets and high service reliability."
AAWW acquired Polar Air Cargo from GE Capital Aviation Services in 2001 for an
effective purchase price of $54 million. In mid October, we entered into an
agreement for DHL to acquire a 49% equity interest in Polar's scheduled-service
business for $150 million. While we expect to recognize a significant gain on
this transaction by no later than 2008, we do not expect that gain to be
realized in 2006 or 2007 and it is not reflected in our earnings guidance.
The transaction also includes a landmark 20-year commercial arrangement that
will ensure DHL access to aircraft capacity in key global markets, while
providing AAWW companies with a valuable, long-term customer and potential
revenue stream in excess of $3.5 billion over the full-term of the agreement.
Further, DHL will also have access to available additional aircraft capacity
from our Atlas Air subsidiary. We believe that our long-term strategic
partnership with DHL will be an important contributor to stockholder value.
Mr. Flynn added: "A key component of our strategic plan focuses on fleet renewal
and technology leadership, which we have addressed through our recent order for
12 state-of-the-art Boeing 747-8 Freighters, with options to purchase an
additional 14. We are a launch customer, and when we take delivery in 2010 and
2011 we will be among the first to offer customers the greater capacity and
improved operating performance of this aircraft.
"We will be well-positioned to participate in growth opportunities in the
expanding air cargo markets, especially in the ACMI sector where demand for
long-haul, intercontinental, wide-body freighters has been outpacing the core
increase in demand for air cargo capacity."
Complementing the transformation in the Company's business profile in 2006, AAWW
repaid $141 million of high-cost debt, thereby enhancing its strategic and
operating flexibility; listed its common stock shares on the NASDAQ Global
Select Market; and attained membership in the Russell 2000(R) Index of small-cap
stocks.
As part of the Company's ongoing fleet strategy, AAWW deliberately resized its
fleet by phasing out seven B747 Classics. These actions maximized the Company's
returns on these assets by capitalizing on sale and lease opportunities in the
secondary market. In addition, we have eliminated in excess of $25 million of
annualized operating and overhead costs associated with these aircraft.
Continuous Improvement initiatives contributed approximately $4 million of cost
savings to the Company's third-quarter results, with another $10 million of cost
savings expected to be realized in the fourth quarter. AAWW anticipates that it
will achieve the majority of the $100 million Continuous Improvement benefits
during 2007, with the balance to be achieved in 2008. The Company continues to
identify and will achieve additional cost saving opportunities.
Mr. Flynn concluded: "We will continue to be an innovator in the airfreight
market, and we will meet the evolving needs of our customers. Our team is
focused on executing our strategy and delivering on our plan. We are positioned
for an exciting, dynamic future for AAWW."
2
CONFERENCE CALL
Management will host a conference call to discuss the AAWW's third-quarter 2006
financial and operating results at 11:00 A.M. Eastern Time on Wednesday,
November 8, 2006.
Interested parties are invited to listen to the call live over the Internet at
www.atlasair.com or www.earnings.com.
For those unable to listen to the live call, a replay will be available on the
above Web sites through November 10, 2006. A replay will also be available
through November 10 by dialing (800) 405-2236 (domestic) and (303) 590-3000
(international) and using Pass Code 11075511#.
3Q06 PERFORMANCE FACTORS VERSUS 3Q05
AAWW's operating revenues in the third quarter of 2006 were $43.8 million lower
than in the previous year's third quarter. The 10.8% decline in operating
revenues reflected a 17.9% reduction in average operating aircraft (32.0 versus
39.0) and an 18.3% reduction in total block-hour flying activity.
Aggregate revenues in the latest reporting period reflected an 18.8% decrease in
ACMI revenue, a 26.8% decrease in AMC Charter revenue, and a 47.5% decrease in
Commercial Charter revenue, offset in part by a 14.4% increase in Scheduled
Service revenue.
Higher year-over-year unit revenues in AAWW's ACMI and AMC Charter service
segments partially mitigated the impact of the 18.3% reduction in total block
hours. Revenue per block hour increased 7.1% in the ACMI business and 15.5% in
the AMC Charter business, while revenue per block hour decreased 12.8% in the
Commercial Charter business and revenue per available ton mile (RATM) decreased
2.6% in the Scheduled Service business.
ACMI performance in the third quarter of 2006 benefited from relative strength
in demand for Boeing 747-400 freighter aircraft, which counterbalanced weaker
conditions in the ACMI market for Boeing 747-200 freighter aircraft.
Improved average block-hour rates in the ACMI segment during the quarter ($5,963
versus $5,570) contrasted with a 24.2% decline in block hours (15,773 versus
20,804), which reflected a reduction in 747-200 flying.
Twelve aircraft (10 Boeing 747-400s and two Boeing 747-200s) were directly
supporting the Company's ACMI operations at September 30, 2006, compared with 17
aircraft (10 Boeing 747-400s and seven Boeing 747-200s) at September 30, 2005.
Despite stronger revenues during the quarter, the performance in the Scheduled
Service segment was negatively affected by higher fuel costs, a decrease in the
number of return flights based on one-way AMC missions, and an increase in fixed
costs allocated to the segment due to excess, underutilized 747-200 capacity
during the quarter.
Traffic (as measured by revenue ton miles, or RTMs) increased 11.8%, and
capacity (as measured by available ton miles, or ATMs) increased 17.6%. As a
result, load factor declined
3
compared with the year-ago period (62.9% versus 66.2%). Unit revenues (RATM) in
the Scheduled Service segment decreased 2.6% ($0.260 versus $0.267) during the
quarter, while yield increased 2.5% ($0.413 versus $0.403).
The decrease in AMC Charter activity during the quarter was primarily due to an
overall reduction in the U.S. military's heavy-lift requirements. Segment
performance was also burdened by an excess of underutilized 747-200 capacity
during the quarter.
In the AMC segment, improved block-hour rates ($16,277 versus $14,098) did not
offset a 36.6% decline in block hours (5,196 versus 8,194). The improvement in
block-hour rates primarily reflected an increase in the pegged rate for AMC
fuel, which was set at $2.20 per gallon in the third quarter of 2006 compared
with $1.40 per gallon in the third quarter of 2005.
Commercial Charter activity in the third quarter of 2006 reflected both a
decrease in block-hour volumes (840 versus 1,364) and a decrease in block-hour
rates ($14,269 versus $16,732). Commercial Charter's performance during the
quarter was negatively affected by higher fuel costs, a decrease in the number
of return flights based on one-way AMC missions, and the burden of excess,
underutilized 747-200 capacity.
OPERATING EXPENSES
AAWW's operating expenses in the third quarter of 2006 were $8.7 million lower
than in the comparable 2005 period, a decline of 2.6%. Significantly lower
maintenance expense, lower landing fees, lower travel expenditures, and reduced
depreciation were offset in part by higher aircraft fuel and an increase in
ground handling and airport fees.
Maintenance expense was $16.5 million, or 33.4%, lower in the third quarter of
2006 compared with the same quarter in 2005. Both a decrease in heavy airframe
maintenance activity (three 747-200 C Checks versus two 747-200 C Checks, one
747-200 D Check, and one 747-400 D Check in the third quarter of 2005) and a
reduction in the number of engine overhauls (6 versus 13) contributed to the
lower level of maintenance expenditures.
Maintenance expense during the quarter also benefited from the lower level of
block-hour activity compared with the third quarter of 2005 and from a reduction
in maintenance activity associated with Classic aircraft that the Company
discontinued flying as of midyear.
Landing fees declined $4.0 million, or 19.6%, during the quarter, mainly due to
a reduction in AMC and Commercial Charter block hours, partly offset by an
increase in Scheduled Service activity. Travel expense also declined $3.7
million, or 24.7%, primarily due to a reduction in crew travel related to the
decline in total block-hour activity as well as improved efficiency in crew
scheduling.
Labor expenses were $2.0 million, or 3.2%, lower than in the year-ago third
quarter. The decrease was primarily due to a decrease in crew salaries related
to a reduction in operating fleet and total block hours, offset by an increase
in the expensing of $0.7 million for management, crew and other employees.
4
Depreciation and amortization declined $1.5 million, or 12.7%, primarily due to
a $2.5 million decrease in the amortization of customer contracts.
Other operating expenses decreased $3.5 million, or 12.9%, versus the third
quarter of 2005, primarily due to a $2.4 million decrease in consulting fees
related to the redesign of internal controls that occurred in 2005, a $2.0
million decrease in freight and other expenses, offset by a $1.3 million
increase in professional fees.
Aircraft fuel expense increased $17.4 million, or 16.6%, versus the third
quarter of 2005, as higher fuel prices were only partly offset by a 14.9%
decline in total fuel consumption, which reflected an 11.8% reduction in
non-ACMI block hours.
Fuel consumption in the Scheduled Service and Commercial Charter businesses
increased 3.9%, reflecting a 7.5% increase in total Scheduled Service and
Commercial Charter block hours, while the average price for fuel consumed in
these segments increased 22.4% ($2.26 per gallon versus $1.85). In addition,
fuel consumption in the AMC business decreased 39.0%, as AMC block hours
declined 36.6%, but the pegged price for AMC fuel increased 57.1% ($2.20 per
gallon versus $1.40).
Ground handling and airport fees increased $3.3 million, or 20.5%, mainly as a
result of the increase in Scheduled Service business activity.
INTEREST EXPENSE
Interest expense decreased $5.4 million, or 27.6%, compared with the third
quarter of 2005, primarily reflecting the repayment of debt, including the
prepayment of $140.8 million of debt during the quarter.
INCOME TAX EXPENSE
AAWW recorded an effective income tax rate of 15.8% for the quarter ended
September 30, 2006 compared with an effective tax rate of 41.0% in the quarter
ended September 30, 2005. The difference in rates primarily reflected the final
settlement of a federal income tax examination during the third quarter of 2006
that resulted in the release of an income tax reserve, $2.0 million of which
reduced the Company's income tax expense for the quarter.
CASH AND CASH EQUIVALENTS
At September 30, 2006, AAWW's cash and cash equivalents totaled $172.8 million
compared with $305.9 million at year-end 2005.
OUTSTANDING DEBT
Also at September 30, 2006, AAWW's balance sheet debt and capital lease
obligations totaled $423.2 million, including current maturities of $19.2
million.
5
As of September 30, 2006, AAWW had $84.9 million of unamortized discount related
to fair market value adjustments recorded against its debt as a result of the
application of fresh-start accounting.
AAWW's on-balance sheet debt and capital lease obligations before discount at
September 30, 2006 totaled $508.1 million, which compared with $689.9 million on
December 31, 2005.
EVENTS AFFECTING CASH AND OUTSTANDING DEBT IN THE THIRD QUARTER
On July 31, 2006, AAWW repaid in full from its existing cash balances
approximately $140.8 million of principal (before discount related to fair
market value adjustments) outstanding under two credit facilities administered
by Deutsche Bank Trust Company Americas, the Aircraft Credit Facility and the
AFL III Credit Facility.
In connection with the repayment, the Company incurred a one-time, non-cash,
pretax expense of approximately $12.5 million in the third quarter of 2006
related to the write-off of the remaining unamortized discount associated with
the two facilities.
AAWW also terminated an existing revolving credit facility (the Exit Facility)
with Wachovia Bank National Association on August 1, 2006. No borrowings were
outstanding under the Exit Facility, and no termination penalties or fees
resulted from the early termination of the facility.
The removal of all the restrictive covenants associated with the three
facilities, as well as the removal of associated financing liens, has enhanced
AAWW strategic and operating flexibility.
NON-GAAP FINANCIAL MEASURES
With respect to non-GAAP measures frequently used by AAWW's management to
analyze its results, EBITDAR, as adjusted (defined as "earnings before interest,
taxes, depreciation, amortization, aircraft rent expense, gains on the disposal
of assets, and pre-petition and post-emergence costs and related professional
fees, as applicable"), totaled $75.5 million in the third quarter of 2006
compared with $110.4 million in the third quarter of 2005.
In addition, EBITDA, as adjusted (defined as "earnings before interest, taxes,
depreciation, amortization, gains on the disposal of assets, and pre-petition
and post-emergence costs and related professional fees, as applicable"), totaled
$36.9 million in the latest reporting period compared with $72.8 million in the
third quarter of 2005.
ABOUT NON-GAAP FINANCIAL MEASURES
To supplement AAWW's financial statements presented in accordance with GAAP,
AAWW presents certain non-GAAP financial measures to assist in the evaluation of
the performance of its business. These non-GAAP measures include EBITDAR, as
adjusted, and EBITDA, as adjusted, each excluding pre-petition and
post-emergence costs and related professional fees.
AAWW's management uses these non-GAAP financial measures in assessing the
performance of the Company's ongoing operations and liquidity and in planning
and forecasting future periods.
6
ABOUT ATLAS AIR WORLDWIDE HOLDINGS, INC.:
AAWW is the parent company of Atlas Air, Inc. (Atlas) and Polar Air Cargo, Inc.
(Polar), which together operate the world's largest fleet of Boeing 747
freighter aircraft.
AAWW, through its principal subsidiaries Atlas and Polar, offers scheduled air
cargo service, cargo charters, military charters, and ACMI aircraft leasing in
which customers receive a dedicated aircraft, crew, maintenance and insurance on
a long-term lease basis.
AAWW's press releases, SEC filings and other information can be accessed through
the Company's home page, www.atlasair.com.
This release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 that reflect AAWW's current
views with respect to certain current and future events and financial
performance. Such forward-looking statements are and will be, as the case may
be, subject to many risks, uncertainties and factors relating to the operations
and business environments of AAWW and its subsidiaries (collectively, the
"companies") that may cause the actual results of the companies to be materially
different from any future results, express or implied, in such forward-looking
statements.
Factors that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the following: the
ability of the companies to operate pursuant to the terms of their financing
facilities; the ability of the companies to obtain and maintain normal terms
with vendors and service providers; the companies' ability to maintain contracts
that are critical to their operations; the ability of the companies to fund and
execute their business plan; the ability of the companies to attract, motivate
and/or retain key executives and associates; the ability of the companies to
attract and retain customers; the continued availability of our wide-body
aircraft; demand for cargo services in the markets in which the companies
operate; economic conditions; the effects of any hostilities or act of war (in
the Middle East or elsewhere) or any terrorist attack; labor costs and
relations; financing costs; the cost and availability of war risk insurance; our
continued ability to remedy weaknesses in our internal controls over financial
reporting; aviation fuel costs; security-related costs; competitive pressures on
pricing (especially from lower-cost competitors); volatility in the
international currency markets; weather conditions; government legislation and
regulation; consumer perceptions of the companies' products and services;
pending and future litigation; and other risks and uncertainties set forth from
time to time in AAWW's reports to the United States Securities and Exchange
Commission.
For additional information, we refer you to the risk factors set forth under the
heading "Risk Factors" in the Annual Report on Form 10-K filed by AAWW with the
Securities and Exchange Commission on April 14, 2006. Other factors and
assumptions not identified above are also involved in the preparation of
forward-looking statements, and the failure of such other factors and
assumptions to be realized may also cause actual results to differ materially
from those discussed.
Except as stated in this release, AAWW is not providing guidance or estimates
regarding its anticipated business and financial performance for 2006 or
thereafter.
AAWW assumes no obligation to update such statements contained in this release
to reflect actual results, changes in assumptions or changes in other factors
affecting such estimates other than as required by law.
* * *
7
ATLAS AIR WORLDWIDE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
-------------------------- -------------------------
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
------------- ------------- ------------- -------------
2006 2005 2006 2005
---- ---- ---- ----
OPERATING REVENUES
Scheduled Service $ 158,458 $ 138,546 $ 439,717 $ 400,661
ACMI 94,047 115,875 294,599 348,037
AMC Charter 84,574 115,516 229,651 308,789
Commercial Charter 11,986 22,823 60,269 53,923
Other revenue 12,007 12,139 35,406 35,620
----------- ----------- ----------- -----------
$ 361,072 $ 404,899 $ 1,059,642 $ 1,147,030
----------- ----------- ----------- -----------
OPERATING EXPENSES
Aircraft fuel 122,522 105,115 339,009 286,633
Salaries, wages and benefits 59,731 61,686 178,901 175,747
Maintenance, materials and repairs 32,966 49,467 116,845 172,422
Aircraft rent 38,534 37,552 114,489 111,981
Ground handling and airport fees 19,301 16,017 54,211 53,525
Landing fees and other rent 16,394 20,393 50,271 59,445
Depreciation and amortization 10,275 11,768 30,320 37,838
Gains on disposal of aircraft (6,256) (7,467) (9,035) (7,467)
Travel 11,219 14,896 37,057 44,248
Pre-petition and post-emergence costs
and related professional fees 39 504 316 2,988
Other 23,482 26,955 76,718 77,418
----------- ----------- ----------- -----------
Total operating expenses 328,207 336,886 989,102 1,014,778
----------- ----------- ----------- -----------
Operating income 32,865 68,013 70,540 132,252
----------- ----------- ----------- -----------
NON-OPERATING EXPENSES
Interest income (2,679) (2,015) (9,921) (4,134)
Interest expense 14,216 19,634 48,704 55,432
Loss on extinguishment of debt 12,518 -- 12,518 --
Other (income) expense, net 398 (228) (513) 1,942
----------- ----------- ----------- -----------
Total non-operating expenses 24,453 17,391 50,788 53,240
----------- ----------- ----------- -----------
Income before income taxes 8,412 50,622 19,752 79,012
Income tax expense 1,330 20,759 5,673 32,620
----------- ----------- ----------- -----------
Net income $ 7,082 $ 29,863 $ 14,079 $ 46,392
=========== =========== =========== ===========
INCOME PER SHARE:
Basic $0.34 $1.47 $0.68 $2.29
===== ===== ===== =====
Diluted $0.34 $1.44 $0.67 $2.24
===== ===== ===== =====
WEIGHTED AVERAGE SHARES:
Basic 20,730 20,306 20,613 20,243
====== ====== ====== ======
Diluted 21,110 20,787 21,079 20,710
====== ====== ====== ======
8
ATLAS AIR WORLDWIDE HOLDINGS, INC.
RECONCILIATION TO NON-GAAP MEASURES
(IN THOUSANDS)
(UNAUDITED)
----------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
THREE MONTHS THREE MONTHS NINE MONTHS NINE MONTHS
ENDED ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2006 2005 2006 2005
------------- ------------- ------------- -------------
INCOME BEFORE INCOME TAXES $ 8,412 $ 50,622 $ 19,752 $ 79,012
Pre-petition and post-emergence costs and
related professional fees 39 504 316 2,988
Gains on disposal of aircraft (6,256) (7,467) (9,035) (7,467)
--------- --------- --------- ---------
PRETAX INCOME BEFORE GAINS ON DISPOSAL OF
AIRCRAFT AND PRE-PETITION AND
POST-EMERGENCE COSTS AND RELATED
PROFESSIONAL FEES 2,195 43,659 11,033 74,533
Interest expense, net 11,537 17,619 38,783 51,298
Loss on extinguishment of debt 12,518 -- 12,518 --
Other non-operating (income) expense 398 (228) (513) 1,942
--------- --------- --------- ---------
OPERATING INCOME BEFORE NON-OPERATING
EXPENSES, GAINS ON DISPOSAL OF AIRCRAFT,
AND PRE-PETITION AND POST-EMERGENCE COSTS
AND RELATED PROFESSIONAL FEES 26,648 61,050 61,821 127,773
Depreciation and amortization 10,275 11,768 30,320 37,838
--------- --------- --------- ---------
EBITDA, AS ADJUSTED* 36,923 72,818 92,141 165,611
Aircraft rent 38,534 37,552 114,489 111,981
--------- --------- --------- ---------
EBITDAR, AS ADJUSTED* $ 75,457 $ 110,370 $ 206,630 $ 277,592
========= ========= ========= =========
* EBITDA, as adjusted: Earnings before interest, taxes, depreciation,
amortization, gains on the disposal of assets, and pre-petition and
post-emergence costs and related professional fees, as applicable.
* EBITDAR, as adjusted: Earnings before interest, taxes, depreciation,
amortization, aircraft rent expense, gains on the disposal of assets, and
pre-petition and post-emergence costs and related professional fees, as
applicable.
9
ATLAS AIR WORLDWIDE HOLDINGS, INC.
OPERATING STATISTICS AND TRAFFIC RESULTS
(UNAUDITED)
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- PERCENT ------------------------- PERCENT
2006 2005 CHANGE 2006 2005 CHANGE
- --------------------------------------------------------- ------- ------------------------- -------
FLEET: (average during the
period)
Operating aircraft count (1) 32.0 39.0 (17.9%) 36.4 39.0 (6.7%)
BLOCK HOURS
Scheduled Service 10,269 8,972 14.5% 28,920 27,989 (3.3%)
ACMI 15,773 20,804 (24.2%) 49,839 63,901 (22.0%)
AMC Charter 5,196 8,194 (36.6%) 14,272 21,932 (34.9%)
Commercial Charter 840 1,364 (38.4%) 4,104 3,595 14.2%
All Other 198 182 8.8% 575 649 (11.4%)
------ ------ ----- ------ ------- -----
Total Block Hours 32,276 39,516 (18.3%) 97,710 118,066 (17.2%)
====== ====== ===== ====== ======= =====
REVENUE PER BLOCK HOUR
ACMI $ 5,963 $ 5,570 7.1% $ 5,911 $ 5,446 8.5%
AMC Charter $16,277 $14,098 15.5% $16,091 $14,079 14.3%
Commercial Charter $14,269 $16,732 (12.8%) $14,685 $14,999 (2.1%)
SCHEDULED SERVICE TRAFFIC
RTM's (000's) 384,061 343,607 11.8% 1,078,079 1,065,903 1.1%
ATM's (000's) 610,307 519,169 17.6% 1,708,803 1,629,053 4.9%
Load Factor 62.9% 66.2% -3.3 pts 63.1% 65.4% -2.3 pts
RATM (2) $0.260 $0.267 (2.6%) $0.257 $0.246 4.5%
RTM Yield (3) $0.413 $0.403 2.5% $0.408 $0.376 8.5%
FUEL
SCHEDULED SERVICE AND
COMMERCIAL CHARTER:
Average fuel cost per
gallon $ 2.26 $ 1.85 22.4% $ 2.13 $ 1.71 24.6%
Fuel gallons consumed
(000's) 37,464 36,063 3.9% 110,937 106,997 3.7%
AMC CHARTER:
Average pegged fuel cost
per gallon $ 2.20 $ 1.40 57.1% $ 2.20 $ 1.40 57.1%
Fuel gallons consumed
(000's) 17,137 28,115 (39.0%) 46,887 74,971 (37.5%)
(1) Operating Fleet excludes the following aircraft count that were dry leased or out of service:
Dry leased 3.0 3.0 -- 3.0 3.0 --
Out of service 6.0 -- -- 2.0 0.6 233.3%
(2) RATM represents scheduled service revenue dollars per available ton mile.
(3) RTM Yield represents scheduled service revenue dollars per revenue ton mile.
10