Air Cargo News.

For more air cargo news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Aug 21, 2006

Commercial airlines carry less mail for USPS. Airlines are carrying less mail for the U.S. Postal Service, and some carriers say domestic mail contracts no longer fit with their business models. USPS has shifted some business to FedEx and United Parcel Service. Aug 17, 2006

ABX Air - Airborne Express

ABX Air last week reported second-quarter net income of $6.5 million, down slightly from $6.8 million in the year-ago quarter, on a 13.6% decline in revenues to $303.6 million. The cargo carrier attributed much of the revenue drop to the May 1 transfer of its line-haul truck operations to DHL, the express delivery giant for which ABX provides US air service. DHL still accounts for the vast majority of ABX's business, but non-DHL charter operations did generate $5.4 million in revenues during the quarter, a 69% increase. Aug 15, 2006

Atlas Air

Atlas Air Worldwide Holdings[sup.1] operating income was $30.6 million, down 30% from $43.8 million last year. Flynn said AAWH is "moving forward with our re-fleeting strategy" by "disposing" of the retired 747Fs in "secondary, more commoditized markets." He added that Polar is saving more than $25 million in "annualized operating and overhead costs associated with these aircraft" and that the "next step" is investing in next-generation freighters to replace the retired aircraft. As for the remainder of 2006, he predicted a solid second-half performance that "will benefit from the seasonal pickup in all of our commercial lines of business that traditionally leads to a pre-holiday peak season beginning in September and lasting through mid-December." Aug 15, 2006

Atlas Air

Atlas Air Worldwide Holdings, parent of Atlas Air and Polar Air Cargo, earned $10.7 million in the second quarter, narrowed 33% from $15.9 million earned in the year-ago period, on a 7.3% decrease in revenues to $366.4 million. President and CEO William Flynn attributed the lower results to reduced scheduled flying and substantially higher fuel prices in scheduled service. He noted that the retirement in the first half of the year of four Polar 747-200Fs--a dash 100F and a dash 300F--contributed to a "substantial reduction in our maintenance cost expenditures" and helped to lower overall expenses 4.4% to $335.9 million. The company said it hopes to make an announcement on replacement aircraft "shortly." Aug 15, 2006

Qantas

Qantas to launch domestic cargo subsidiary. Qantas plans to launch a domestic airfreight subsidiary in October called Express Freighters Australia.The airline said yesterday that the new subsidiary will wet-lease 737-300 converted freighters to Australian air Express, a Qantas/Australia Post joint venture, under a 12-year contract. The dash 300s will be converted to freighters by Qantas Engineering in Avalon. Qantas carries domestic cargo in passenger plane bellies but does not operate domestic freighters, although it wet-leases three 747-400Fs from Atlas Air. National Jet had been providing cargo aircraft for AaE domestic service and Express Freighters Australia will take over that role. AaE also moves cargo within Australia for international operators including TNT. Aug 17, 2006