Atlas Air Reports First Quarter Operating Income Increase of 26%; Net Earnings Increase of 6%.

GOLDEN, Colo.--(BUSINESS WIRE)--April 20, 1998--Atlas Air, Inc. (NYSE:CGO) today reported net income for the quarter ended March 31, 1998 of $5.3 million, or $.24 per share, the second best such quarter in its history, and a 6% increase over the net income of $5.0 million, or $.22 per share, recorded for the year-earlier period.

Operating income for the first quarter of 1998 rose by 26% to $21.5 million, compared to $17.1 million for the comparable period in 1997, on revenues of $79.6 million.

Richard Shuyler, Executive Vice President of Atlas Air, said, "Our results for the first quarter were proof positive of the continuing strength of the air cargo market and the earnings capability of Atlas Air's core fleet of aiew virtually the identical number of hours this year that they produced in 1997's first quarter. This was a clear confirmation of the healthy state of the cargo market that our customers had been predicting.

"Just as importantly, our very strong operating performance demonstrated the earnings benefit Atlas can expect without the drain of the Federal Express aircraft. These two factors cause us to bael A. Chowdry, Atlas Air's Chairman , Chief Executive O fficer and President, said, "The first quarter was an we saw several events that bode well for Atlas Air as we go forward into the remainder of 1998.

"One oinued growth of the Asian air cargo market. Also, we added a new customer, Alitalia, to our portfolio, with b view of the increasing market for our services, and successfully placed the two aircraft that will shortly be delivered to Atlas out of freighter conversion at Boeing. the five new 747-400 aircraft that are to be delivered to Atlas during the second half of this year.

"We completed financing for all five aircraft in January, by placing $539 million of Enhanced Equipment Trust Certificates, and are well along the way toward announcing the first customer contracts for these deliveries. We are very confident of the positive impact these aircraft will have on Atlas Air's fleet, and are looking forward to their delivery and to a successful year for Atlas."

Atlas Air also indicated that it had completed a private placement of $175 million in 9 1/4% Senior Notes, that will be utilized to prepay amounts outstanding under its revolving aircraft credit facility and for general corporate purposes, including the possible redemption on or after year-end of the Company's 12 1/4% Pass Through Certificates.

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 Alitalia, British Airways, China Airlines, Emirates, Fast Air, KLM, LAS, Lufthansa, SAS, and Thai International Airways, serving a total of 62 cities in 38 countries. -0-

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 workforce, 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.

Atlas Air trades on the NYSE under the symbol CGO. -0-

                            Atlas Air, Inc.
                       SUMMARY FINANCIAL RESULTS
                    ($ MILLIONS, EXCEPT SHARE DATA)

                                           Quarter Ended 3/31

                                      1998                   1997
                                      ----                   ----

Operating Revenues                  $ 79.6                 $ 82.0

Operating Income                      21.5                   17.1

Pre-Tax Income                         8.4                    7.9

Net Income                             5.3                    5.0

Diluted Earnings Per Share           $ .24                  $ .22

Diluted Weighted Average Common     22,556                 22,478
Shares

Total Block Hours                   15,388                 15,443

CONTACT: Atlas Air, Inc.

Richard Shuyler, 303/526-5050