Atlas Air Announces Contract for New 747-400 Freighter.

GOLDEN, Colo.--(BUSINESS WIRE)--July 16, 1998--Atlas Air, Inc. (NYSE: CGO) announced today that it has signed a long-term agreement to provide B747-400 air freight services for Cargolux Airlines.

Under the contract, Cargolux will fully utilize the second of Atlas Air's new 747-400 freighter aircraft to provide scheduled service on its routes, with Atlas providing the aircraft, crew, maintenance and insurance (ACMI).

"We are delighted to welcome Cargolux as the second customer for our recently acquired B747-400 aircraft," said Michael Chowdry, Chairman, Chief Executive Officer and President of Atlas Air. "This agreement is further affirmation of the demand for the increased range, larger cargo volume and reliability of the 747-400 freighters," he said.

Heiner Wilkens, President of Cargolux, which presently operates five B747-400F aircraft, with more on order, stated, "Based on our experience, this aircraft type is needed to meet the present and future needs of our customers, who demand reliable, cost-efficient and environmentally friendly solutions to their air transportation requirements."

Atlas will take delivery of the first of its 747-400s this month, on July 28. Four additional freighters will be delivered in 1998, four in 1999 and one in 2000. Atlas has options for 10 additional 747-400Fs. In addition to the contract with Cargolux, Atlas previously signed an ACMI agreement for a 747-400 with British Airways in June.

Atlas Air is a United States certificated air carrier that operates a fleet of 747 freighters under long-term ACMI contracts. These contracts include the provision by Atlas of Aircraft, Crew, Maintenance and Insurance for some of the world's leading air carriers, including British Airways, China Airlines, Emirates, Fast Air, KLM, LAS, Lufthansa, SAS, and Thai International Airways, serving a total of 62 cities in 38 countries.

To the extent that any of the statements contained herein relating to the Company's expectations, assumptions and other Company matters are forward-looking, they are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations that involve a number of uncertainties and risks that could cause actual results to differ materially from those projected in the forward-looking statements, including, but not limited to, risks associated with: worldwide business and economic conditions; product demand and the rate of growth in the air cargo industry; the impact of competitors and competitive aircraft and aircraft financing availability; the ability to attract and retain new and existing customers; normalized aircraft operating costs and reliability; management of growth; the continued productivity of its work force, dependence on key personnel; the ability to manage the introduction of new fleet types and to contract out new aircraft on a profitable basis; and regulatory matters. For additional information regarding these and other risks, reference is made to the Company's periodic reports filed with the SEC, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 1997, and the Quarterly Report on Form 10-Q for the period ended March 31, 1998.

Atlas Air trades on the NYSE under the symbol CGO.

   CONTACT:  Atlas Air, Inc.
              Richard Shuyler, 303/526-5050