AAWW - Earnings call transcript Q4 2019 | Atlas Air Worldwide Holdings Inc.

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Operator

Thank you for standing by and welcome to the Fourth Quarter 2019 Earnings Call for Atlas Air Worldwide. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

I’d now like to hand the conference over to your speaker today. you. Thank may you begin. Air, Atlas

Ed McGarvey

and slide Chief Today’s a you, in good McGarvey, quarter Chief everyone. Financial hosted call. complemented Ed and for that Thank XXXX the under Presentations can be John Investor Atlas Schwartz, conference fourth morning Treasurer Officer. our our Spencer our section. call Today’s Officer is atlasairworldwide.com Air I’m to Information Executive be presentation by Jessie Worldwide. Dietrich, will viewed call results at by Welcome

As indicated expectations we’d XXXX. within of Securities X, they and some performance Slide that Private our like and Act and statements you on today These involve risks to statements discussion the forward-looking company’s the Reform remind meaning relate of about uncertainties. to the Litigation events includes future

actions or differ may statements. those materially forward-looking any projected results actual Our in from

factors references today’s business, Form our For to and reconciled Any reports. XX-K information in measures insights attached with provide and slides. GAAP in amended are release meaningful refer XXXX subsequently or to as related about that supplemented by is are meant appendix to to today’s SEC our the to press risk our non-GAAP filed please

any to question-and-answer that through one the we’d to our After limit questions gone have as we’ll time possible. question additional we can like as During many principal queue, themselves happy accommodate follow-up ask today, one we participants to permits. so answer to period and question participants be as

call At to this Slide John attention to X and point, like over turn the your I’d to draw Dietrich.

John Dietrich

good Thank joining. and for everyone. Ed you, morning Thank you

him course, Chairman retired contributions Atlas great sense company, time shareholders. responsibility and of I first to to CEO. Bill know, time Flynn, you with for Atlas a do of to now this members our at Bill so continuing our would our is as today with first Board I of going forward pride to our speaking As and I you to customers, who and, take of look to as CEO his Worldwide. my closely like other employees, during opportunity Air forward. our to year-end, and with strong the of many thank Board his many work is

first of is I several emphasize. will formidable call fleet continue are chain. customers. critical part themes global freight my be in growth its is list supply with well-positioned long you, diversified that marquee is Atlas this Air want portfolio industry a aircraft with there to and to a the long-term of As is that and of a a

associated recent we customers growth with our move and of and in XXXX of challenges be opportunities that with business best business and opportunities the align subject and resources to with strategic those over returns. best we market the XXXX. as the the generate uncertainties anticipate our some our forward, a focus will to we priorities our light an the our that potential In unfortunate coronavirus, are outbreak manage of And, adjusting costs financial performance improvement on

to move please X. Slide Let’s

and economy vital needs rising mentioned, meeting the supply networks businesses domestic international demands in for by freight consumers. key of continue in a will and and I the global Atlas growing increasing the As meeting is playing air demand role of time-definite chains.

appreciate. with customer It reflected XXXX that year in quarter team adjusted year. improved also our the middle customers Our pickup a and the deliver to high demand quality fourth the and full services coming season our together compared reflected peak included that of the results yields

maintenance cargo rent excess also fourth quarter in flying, benefited previous rent from we lower aircraft of for the flying our results lower aircraft a depreciation, years. paid passenger increase refund peak do expense, heavy and military in season expected, express and an and As customers,

which conditions, the certain labor-related by affected and as yields factors and South and macroeconomic our of tariffs, well XXX-XXX the commercial geopolitical as reflected unrest and in cargo service charter also were however These aircraft. in certain trade results ACMI America in air utilization of environment countries effects disruptions. Our tensions, global global resulted freight lower

U.S. and and resulted result income for of special during the the standards, we as quarter fleet a XXX-XXX the than charge in depreciation adjusted aircraft accounting aircraft As accordance higher recorded non-cash lower rent and lease well non-essential and anticipated during with certain period. adjusted our write-down engines. net a as of disposition and EBITDA freighter the This dry in

We affect and also in beyond. expect to depreciation positively rent lower earnings XXXX and

our a of business few the and thoughts Turning the about They have company’s to future. with X, the strength begin Slide I principles. strategic

and security priority. is top safety, always, and our corporate First compliance

do. We to we will continue everything and in compliant safe operation promote a

and In Japan, South Denmark, mentioned shippers. are marquee strong UPS, FedEx, in the have well military, charter Amazon, NFL value and many core customers Qantas their Boeing, key play sports in long-term These we including I we and of of Panalpina direct in the a networks. freight addition Australia, and customers out we as other DHL, of teams, airlines, as Korea, DSV a U.S. role NCA out earlier, as that forwarders, based Asiana brokers, operating

international a have biggest aircraft cargo and domestic, of and customers fleet for We broadest regional, modern the diversified passenger and providing array and operations.

markets. U.S. e-commerce, major player and the fast in a are growing We military express,

as addition the the also and major America player a between presence the of our growing U.S. the to the as rest in South world market are well We Trans-Pacific in in

focus a do expect. all focused efficiencies, highly sets the to have we on employees business skill dedicated focused, we diverse on-time balance bring tremendous cost with capital our our are performance help allocation management, customers shown, team and have us on a forward. disciplined move sheet we that that We operating And as a constantly who experienced of customer with maintenance. strategy And

will where has our what continue is are and to that So shape future. today shaped we

well positioned success continued going Atlas is forward. for

through and us air has these other doubt unrest, challenges manage pass history no to with and key and the ongoing as supply role the global wars, crisis, they will will are rebalances. chain volatile the times we through will but taught play trade freight continue a We coronavirus, in geopolitical as

new complete for collective priorities a pilots. One also of agreement joint our top to bargaining is our

meeting Our negotiating already regularly teams made. been has some and progress significant are

a for the tentative bargaining the have provisions We than reached sections called collective have more agreements path merger what new two are and agreements of JCBA. half defined forward under the we of in the

new an are We need JCBA, doing a receive to proposal we both which leaders complete all to ultimately with to to contract implement our provide as the soon a work union negotiate to together when be to as still to pilots but cannot this We union, reached, and can contract remain committed comprehensive as certainty they as and well new say economic agreement are will with the negotiations but continuing from of possible seniority complete the forward. with deserve. we we list required the move integrated

and I are to adjust As business our elevate earlier, Atlas. steps taking we said

of reviewed have I I to those identified on are our areas not to ensure levels are addressing use. operations resources of that profitable activities, our be the that return. business range certain As will focused I generating the most acceptable put

Slide XXXX. X our for highlights framework

determined they The air ahead navigate networks In the in experiencing these time. the are every key role to year freight the this unprecedented and evolving. circumstances, industry be therefore, effects no coronavirus outbreak, are our unfortunate full customers’ visibility as of our through playing is is operating about we is challenging different. yet into impacts a Just

special full currently also surge charter are once anticipated manufacturing well resumes and for of We in demand the are accommodating volumes prepared force.

the mid-teens adjusted percentage our will we rent about Based depreciation, current we coronavirus, revenue adjusted opportunities this in Including expected to expect by income increase to ‘XXs of the economic a expectations, low a XXXX the lower XXX,XXX from and associated and potential approximately high billion. with risks XXXX in $X.X and the on conditions impact and impact that block hours grow net with and will XXXX global anticipate our our in to ‘XXs and by subject fly EBITDA aircraft that percentage. year

than years, Excluding aircraft and XXXX depreciation income the higher both our EBITDA and XXXX or anticipate slightly adjusted levels. comparable lower will that net be adjusted of in we to impact in rent

the an maintenance reflects with the in Our full realized the return and XX%. effective quarter of cost income in years, adjusted a XXXX increase we refund of absence of operating of year of efficiencies an savings, paid improved and first XXXX, XXXX in rent compared that income excess approximately impact in XXXX, conditions in deferred of outlook tax expected aircraft previous amortization rate

we parked Our reflects XXXX. four outlook have the of beginning less-efficient since also freighters that converted XXX-XXX

lessor sell three this the in non-essential XXX expect or We of our we year have to half to first return plan portfolio. dry lease to aircraft freighter also sold in its one and

XXXX adjusted will anticipate to well that Similar of income of the half patterns, year. the over we net in second occur in our three historical quarters

fleet components million XXXX, $XX aircraft exclude which for expenditures, in capital total are XXXX. projected and core approximately to of are in and lower engine our CapEx our mainly $XXX parts to which million addition, In about core $XXX and than purchases for significantly million

profit. quarter, Looking adjusted adjusted to of to the breakeven income modest expect $XX EBITDA to developments net the revenue, coronavirus, XX,XXX block subject million a approximately hours, also $XXX is ranging approximately the which related we million first to in from and

provide then is Spencer Spencer? to provide your after and a questions. ask we’ll to results our additional happy comments overview remarks, a be to quarter time Spencer’s and an XXXX good few of I’ll This answer fourth

Spencer Schwartz

Thank you, John and hello everyone.

million X. Slide $XXX.X and was basis, a tax. adjusted primarily tax $X.X rent basis, to from results aircraft charge of of continuing we of reported quarter totaled due special million, operations, On lower a $XX.X driven million totaled are fourth $X.X to of after which On million benefits taxes, net $XXX.X income This Our lower million, and by had a due $XX.X EBITDA $XXX.X on net an included after million. non-cash loss depreciation. highlighted million

in Our adjusted tax of income quarter included an earnings effective XX.X%. the rate fourth

year, income rate we full XX%. tax XXXX, adjusted approximately our had year expect of In adjusted be the For to we full XX.X%. rate an tax

air a revenue at fourth million quarter. and $XXX related CMI revenue growth the conditions and macroeconomic in X, reflected partially totaled environment offset Looking flying. by decline global to operating Slide in XXX-XXX cargo in the ACMI flying XXX XXX, freight XXX-XXX, ACMI

revenue yields, freighter was the increases leasing, of In decline that fuel. relatively during and flying, excluding offset line by a by scheduled quarter commercial dry XXX of passenger with cargo fourth a were quarter in return In XXXX. XXXX the in charter, cargo in reflected the driven revenue primarily in mainly

totaled a and Slide in growth X, primarily reflected rent $XXX decrease ACMI in flying. depreciation, a cargo in heavy maintenance earnings in fourth the reduction million CMI contribution to segment quarter. Moving aircraft and expense,

cargo during Charter in and increased contribution by by driven passenger the the maintenance rent similar aircraft partially by return by XXX the XXX primarily to driven offset reduction a for leasing, expense, lower offset This yields and depreciation. was change dry expense of heavy revenue cargo lower freighter decrease depreciation. military, and in the and scheduled was commercial flying partially interest period was In contribution utilization. lower in and the primarily freighter lower change in the a

as firm we ratio look to aircraft for improvement purchase moved continue ended make the as XXXX our per we to a XX, our $XX we bit the Turning times. sheet. the approximately a cash don’t X.X year We to balance million and lower net commitments fourth make payments at to and committed of Slide any quarter. quarter leverage increased debt We end payments. We continue remain an strong debt balance by of in have

secured $XXX XX-year the averaging extended two we with fixed in totaling million coupon aircraft of a existing period XXXX rates balloon extensions, less for due connection the with $XXX we million key of loans have two Earlier payments refinanced new later a XX on term lease years from with X.X%. each XXX for with the this that two than In leases. month, the of loans freighters, end customer dry leases

turn Now John. it back I’d like to to

John Dietrich

Thank you, Spencer.

today. Slide a and revisit critical marquee of aircraft and list to is global like great growth the is a be part with of that of well-positioned long-term I themes to I industry XX, that will supply would fleet with continue the customers. Moving freight started a to long is Atlas Air chain.

and over potential strategic that business with our our to and our those priorities, the the about, with best best As be an our some we improvement we anticipate we’ve XXXX. that opportunities growth customers resources opportunities and again, costs subject focus and XXXX business talked will we generate manage returns the on forward, performance adjusting align uncertainties move a in our financial to of are

have operator, that question. we With may our first

Operator

question first with Securities. Your Certainly. CJS [Operator Instructions] Bob Labick comes from

Your line is open.

Lee Jagoda

Jagoda actually Good for this morning. Bob Hi, it’s morning. Lee

John Dietrich

Hi, Lee.

Lee Jagoda

non-essential and So then potential you’re and you of aircraft with just fleet that? the from starting parking things expected more the the some give of the like can color of changes, the us three proceeds, or selling BCFs retiring around uses proceeds that standpoint

John Dietrich

with start the of freighters. the converted Sure, XXX parking I’ll

to part be it’s about no to least back available parked so nose first. but of generally us the as more not talked latter current soft, times frankly the year, XXX-XXXs. logically freighters, those demand has And throughout freighter has converted are generally we XXX return we softer. the they usually to the are efficient, temporarily aircraft, get environment, capability than period. through lead in parked As the the because aircraft load to we demand – last that that for burn, for been fuel appropriate elected And converted are when been heavier, They they manage with service, there less they’re efficient

parking the aircraft. So that’s of reason those kind behind of the

non-essential believe We aircraft collect was describe the the returns. With fair regard got some we to as right what of monetize we aircraft, those market cash. other to the – and

with we of pleased of activities. disposition assets forward We’re to results look Spencer? future our of those investing the and some

Spencer Schwartz

this add on Lee, is balance to And focus lower as sheet to net use to those up trying far we Spencer, our intend of use shore leverage ratio. and to I’ll to our that proceeds as proceeds, continue just

Lee Jagoda

of just aircraft without things And increase Okay. other you that incremental then additions. in of reduce a nature margins either terms to have follow-up opportunities, costs,

John Dietrich

Sure.

our We’re at we our and maintenance make every business. and to or of It is ways crew more time to are cards events technology more efficient practices, us to less required and These scheduling and bidding tasks. the leveraging streamline optimizing expensive. make whether things task looking like from time efficient, streamlining to updating aspect includes those heavy develop time there them work review that maintenance and over not it

leveraged outside canceling and really contractors the gamut that contributing other costs some kind I in travel, meetings of headcount services you’d it can webcast, things conferences non-essential or of our And mean, and be whole appropriately organization expect whole market, a of the the things through limiting the managing our softer reducing expect other keep certain control. and you’d to runs under otherwise

Lee Jagoda

hop will back thanks. queue, in I Great.

John Dietrich

Lee. Thanks,

Operator

question comes Cowen. Helane next with from Your Becker

Your open. is line

Helane Becker

on right, for more welcome board, you very now, thank operator Hi, much a different and being of to you aggressively. participate listener, get John, it’s instead for just you

John Dietrich

Yes, indeed, Helane

Helane Becker

you’re forward? but possible agreement pilots your you this one So with for your I’ll stuff negotiated and conference try you’re questions, doing mean to to of on everything so to that just first that not my to be is would call, move them get agree you it that waiting to provide

John Dietrich

not. I think agree, may many would some

forward. and I the think We is the then, announced taken all lies in to do. in Southern this XXXX, merger really Air we’re our have with seeking to steps where what since move back we of process proof facts

things do pretty go leaders giving steadfastly process including Fortunately and of issues, union of the requires your which but explicit arbitration, issues for that any and us, in CBAs bargaining merger forced called a us seek the refused have what provisions defined those integrated to certain have has any should terms, seniority the are that in unresolved to two list if to particularly there calls, to which unresolved to as after the prior legal period of we’ve to is the intervention. question, triggers a for union honor described time event us

my the the we in of because orderly, to opinion, does, doing this it bucket contract everything timely possible us get time, resolved. to taken has and an that while So fit process provide into believe,

bargain. we and some legal notwithstanding wrangling, the continue Nonetheless of to

parties a in, close negotiator request, to brought help know professional respect gap. us have at both and the third-party the We union’s that

to member, so, as going require believe working as were that’s you together it’s they So standpoint, crew we can. I to think because get it as would from quickly progress be mixed I an to together we ask truly what and also yes, view think make we’re us but results, that would you’d if individual pressing

of category further to into fit identified I things the we Notably, do require the progress. things make

a waiting proposal. on are comprehensive We

bargaining that does section at have every in point the economic We’re where consequences.

applied funds until know we are CBA, where seniority to a we as to it even agree what ask list that allocate need were be we list. we the have best is need we the can’t to implemented and seniority So if total the really the

that why has this union identify So responsibilities as that’s we in the some well.

answered So your hopefully question. that

Helane Becker

very very good. other No, you Thank to seeing that’s Yes. in that. I much, respect My appreciate is with what question we’re rates.

I the seen space, to go no past there’s couple wondering March guess for April eventually reserving to weeks if manufacturing, because rates we’ve contacting So are kind and China. that in to belly on know, starts it you no there March, of over manufacturing double, shippers of Asia is you and start especially companies, if as space shipping container I’m May, ramp and air there’s has up and out just there obviously any of are back April

John Dietrich

support knowledgeable calls us lot a of to and getting we the the been what’s a officials some goods going through moving, know happening. we’re the anticipating all in of happen. lot of but with knows this the government none sure of really experienced crisis Absolutely, and kind before, There going committed very is shippers, keeping what for forwarders, absolutely brokers are with while to supply of maybe moving senior who but to and talking freight we’ve like and activity do exactly uncertainty, are not you’re is chains it’s return who about

Helane Becker

does easy that Okay. aircraft chart, question. four aircraft? The in parked include And one really the then XXX the just

John Dietrich

It does.

Helane Becker

Okay, great, thanks very much guys.

John Dietrich

you, Helane. Thank

Spencer Schwartz

Helane. you, Thank

Operator

from with Research. Wolfe question Scott next Group Your comes

is open. line Your

Scott Group

guys. morning, Good thanks. Hey,

I coronavirus So question. on Helane’s to wanted follow-up just

are be there quarter what positive about or that rates net of know So you we in clear the negative you doubling, guidance, have in in then the about like be just what can in number assumed thinking limits talked flights actually and any should I is first of the charter are year. a and the terms fact fly? you Helane can you seeing

Spencer Schwartz

the that, I’ll first Spencer. part take of Scott, it’s

coronavirus thus to forth. New So the Lunar has Year I not the impact with workers being and extended, been able you mean a get imagine one far, factories would so as negative factory into

position So appropriately. we passenger to weren’t get had able we’ve flight we’ve who crew members the not into operating airlines cancellations, were had also because

factories in starting the As this and starting demand now we’re that see to work and is yields really the now change Helane increase back tremendous get quite to really to indicated, week. the dramatically and to

them not on power. full Some of

to the and will we half. they a a full – to change and that expect on continue about get We think power or over next week week

so And to going really be there is anticipated kind this surge. of

So our view cancellations some it’s had we’ve earlier, now, to and as John regard evolving. negatives with this. is said Right

and we quite again, We it. to both John expect are kind built an have said, that then I’ll as and positives really outlook, are view let the evolving of of some uncertainties then rest the address into our given but going John those of it is

John Dietrich

I in remarks, to as Significantly, with take understanding. worked together we are And the mentioned enter Yes. we of union well-positioned advantage memorandum an into upside. of my to that really

in taking and pay have with out out with We China union pilots of union, entire into volunteers leadership. for the and for any programs been segments are premium including and the and flying cooperatively we and team working the of those very China the working some and implemented together

by cancellations also happens. the the accelerate, but charter mentioned, been voids some them. interim picked not surge continue, activity, of we the there have as some taking So to out advantage, which been when period, expect those if in my Spencer shout And up to have

Scott Group

[indiscernible] I year to not. a I quarter understand, clear from it’s full the so second or not benefit Just just so guess implied – reflects I meaningful me. guidance, know you like this

Spencer Schwartz

It’s still evolving, Scott.

going to is to hard exactly mean. it’s So what know

things worse So is the that I if is or fair I fair potentially get quite think a that if upside say surge to potentially there change and there say that is of there think bit we it’s it’s anticipate. downside to

John Dietrich

we’ve visibility risk more much that, on careful that get not been to things until take too we’re anticipating. we add would materialize to on I and upside the And

Scott Group

Okay, makes sense.

wrote I you’re understand, down XXX charter? the Just these coming that were the fleet just parking just or and the was on ones entire fleet, of XXXs the out, so the this that in or write-down are ACMI you

Spencer Schwartz

XXX-XXX the Sure, it so Scott, fleet. freighter was

airframes entire the leasehold is which as it includes of leased and together It’s fleet. parts, asset improvements. So group and engines, owned [ph] sort ratable one

fleet the So that of missed? it have of was I freighter sorry, and did another part you all our question XXX-XXX

Scott Group

charter? are just coming or with that where in Well, in ones that are parked, those out the ACMI getting were those

Spencer Schwartz

right. They Oh in charter. were

Scott Group

the over be of you time? do pure freighters with fleet, of the of kind more XXX think write-down factory parking Okay, thinking should we about the whole

John Dietrich

we’re not that. Scott, anticipating

I but capability, aircraft XXX loading well business. expect the In as is still more choice for and charter period, least an great stay. fact, to this military in the our attractive Again it’s the are with the which XXX, airplane efficient of be aircraft nose to mentioned, a freighters tonnage, here during very its XXXs it’s we temporary, aircraft parking as –

Spencer Schwartz

few would a that customer weeks that’s good aircraft an demand. a still we just just a add It’s in I placed with arrangement XXX ago. an And just in new ACMI

Scott Group

Last the for in one, time. quick, the XXXX and just the thanks much real guidance how refund, in rent XXXX versus Okay.

Spencer Schwartz

you, Thank Scott.

said in $XX.X had year XXXX, that million we million; and but the those exactly be XXXX, had how it along progresses. is, as we’ll we In said and lines haven’t something XXXX. XXXX, what we we in announce then haven’t about that’s going in $XX.X much to yet So

Scott Group

you. Thank

Spencer Schwartz

Thank you.

Operator

Your comes with question next from Chris Stathoulopoulos Susquehanna.

open. is line Your

Chris Stathoulopoulos

Good for my taking morning, question. thanks

and market or to might how you think months parked back is, fluid freighters is situation in need curious China that freighters. I say about for capacity know Mainland supply A more there the to a some ago the should few and China Kong capacity given overall we the into that are what suggested had Hong specifically have the virus, you So the balance think I and know seeing belly I’m be mid-XQ, this ex but before I the for comes sense that in charter how demand got if you commercial region?

John Dietrich

comes the the carriers it’s there commercial when of not that, have before marketplace, carriers some tremendous but Chris, resume I some the that And and ahead, into to service when commercial to April looking pushed experienced. service has going be is all manufacturing of to of setback demand don’t belly a the amount the capacity that on going is change view they’ll still the even commercial of have resume given in significant overnight, my So dates,

So you’re favors of returns it talking and about time that pent-up that potentially before deck which period demand building main even freighters.

eventually have balance while So to by market. surface will just moved will surface goods by by and move that go because it air urgency – to moved previously the of

we period to surge it’s a move the that passenger So occurs, capacity much and time. going needle while think a to not once that the going the be is of belly for that

Chris Stathoulopoulos

Okay, capacity so whenever shouldn’t current back kind peak American, anchored whenever happens. online. to you’re they your that to a and EBITDA necessarily It sounds hour Delta and follow block guide a is like put that sort of think we of expecting

John Dietrich

and forecast that carriers independent the capacity. the is view of belly my Yes, commercial is

Chris Stathoulopoulos

been respect are the tranche and tranche, Okay then you and any where and the you price remind Amazon when could have XXXX strike whether us with Thanks. that to expires? the exercised specifically warrants,

Spencer Schwartz

Chris. have exercised. have expired, Sure, yes, none sorry of warrants them of those expired, of none them – None have

price of has none had of of been B a have yet strike A a tranches. Warrant and a $XX.XX had Warrant different we and again, C strike So $XX.XX few those and price exercised.

Chris Stathoulopoulos

you. Thank

Spencer Schwartz

you. Thank

Operator

Stifel. [Operator Instructions] David Ross question Your next from with comes

open. is line Your

David Ross

Question again. gentlemen. things of the on side labor morning good Yes,

disruptions. in year throughout mentioned labor-related XXXX it than or You past been quarter XQ there the into quarters you was so, service highlighted the how see It’s prior in any that and do fourth less trending in XXXX? was

John Dietrich

of enough crews Yes, to fourth we combination had in in management out that the of including a it steps we was for quarter the less some in workplace. factors ensure the took

planned training. They’ve example, most vacation peak the we have more for crews – to part season for For available and completed crews available.

the So coverage. by out we’ll instructors as as available have where serve close additional crews as the qualified who as well on design instances there have down more we where we generally school pilots line house is

And service in the stepped related are about momentum our remarks instances the come labor-related that and disruptions reference are labor disruptions. the of we frankly, the what my believe pilots we environment expect delivered generally still with up see positive labor service just customers the in discussions, and our some to the to we’re in, service

So that why and not in it and up the hasn’t was in our quarters. a serving focus of much customers as it’s the gone overwhelming of but fourth majority as pilots away entirely, our quarter are previous stepping that’s

David Ross

And going to in XXXX, earnings quarterly into is do be minimal? this or you again to expect close the it highlighted

John Dietrich

want want pilots go work, that jobs we’ve but our go We’re has the and responsibilities to contract. their my optimistic, longer Unfortunately, to they want getting We and because with arbitrations them to do their the The get is deal we’re focused to view through, they as of our had a it’s and want to contract. pilots. to to to taken they union some on as want here well serve I’ve customers mentioned. litigations our

hopeful So if which see of we continue to going we keep been, improvements moving in to have and certainly direction, I’m optimistic that we’re that. I’m

David Ross

timing have but labor goal resolution And what for can’t control does, you of the to the I contract? know union you a do

John Dietrich

to As that are make happen. think that as could not and It’s there happen there continuing that accelerate prevents levers possible, soon kind I pull from but is still both overnight to going periods. the to sides us a of discuss, because time lot to nothing there’s

which is arbitration. I’ve to a the period things of call the after for the and us issues tender provisions bargaining, that of there to publicly with after contract list of One the go seniority union months current which the nine binding union, shared any unresolved

zero starting have of contemplates that months you’re majority a we sections mentioned, already That I these also nine we’re As and scratch, not. agreed. from from

opportunities the comprehensive the until seniority me, make economic we excuse and if accelerate difficult to unless proposal, is and seniority that our – progress. we and the So there to but get view list can, it’s integrated the list are rapid

So both sides have a responsibility to move this forward.

David Ross

just one follow-up. then And

you you see into certain the time lead What there is is general to out service. parked XXXs the time there? think get that earlier that if I said back a lead demand

John Dietrich

to when a range could are maintenance. anywhere if there of quickly couple status certain little two, depending that, single lead XX more answer period. bit probably engines, we XX-day the to is time that depending There the the back other move week a we aircraft, could It for in status on pretty them hold but days the a on of aircraft due no out the time would of to that that and from need XX-day it’s online

David Ross

you. Thank

John Dietrich

Thank you.

Operator

any time. remarks. this There I are at further no presenters questions the to closing turn for call back

John Dietrich

Spencer I all would time very with to operator. of forward sharing you appreciate you speaking again and Atlas and your thank for your you much. We soon. Air you today us Thank in like Great, look you with Worldwide. we interest thank to all

Operator

today’s conference call. concludes This

may now disconnect. You

Atlas Air Worldwide (AAWW) 20 Feb 202019 Q4 Earnings call transcript