Atlas Air Reports Record First-Quarter Results.

Business Editors

GOLDEN, Colo--(BUSINESS WIRE)--April 18, 2000

Atlas Air, Inc. (NYSE:CGO) today reported record first-quarter net income of $12.0 million or $.35 per fully diluted share for the quarter ended March 31, 2000, versus $10.2 million, or $.30 per fully diluted share before one-time and extraordinary charges for the year-earlier quarter.

Operating income for the first quarter of 2000 was $43.2 million on revenues of $166.4 million, both records for first-quarter results. Compared to the first quarter of 1999, operating income improved by 18% and revenue improved by 21%. Net income improved by 17% year over year when compared to the as-adjusted first quarter of 1999.

"The first quarter was another exceptional period for Atlas," said Richard H. Shuyler, Executive Vice President of Atlas Air, Inc. "This represents our ninth consecutive earnings record for a quarterly period, with new records set in every category -- revenues, block hours, as well as operating and net income. Our capacity increased 11% from last year, and our block hour production grew by an even greater 22%, resulting from a 9% improvement in aircraft productivity. This added productivity helped boost revenues for the quarter by 21%. Significantly, unit operating costs remained flat with last year despite this growth, reflecting both our efforts at attaining further cost efficiencies, and our insulation from fuel price exposure."

"These achievements," Shuyler said, "continue to reflect the ongoing strength of the international air freight market and the unique nature of Atlas' business model. International volumes are increasing across-the-board, particularly out of Asia, and our customers flew at record-high first quarter levels, well above our earlier projections. The vitality of the Asian market was further underscored with China Southern Airlines and Korean Air becoming our first two new customer contract announcements for the year. Going forward, the remainder of 2000 should be equally as positive. Two of the three new 747-400's for this year have now been delivered to us by Boeing, well ahead of earlier projections, and placed with long-term customers. As a result, virtually 100% of our expected block hour production for the year is now under contract. With these revenue commitments in hand, and with all of our financing programs completed, and a stable cost base to work from, the remainder of 2000 should be outstanding for Atlas Air."

"Our strong first-quarter traffic continued the trend we saw throughout last year," said Michael Chowdry, Chairman, Chief Executive Officer and President of Atlas Air, Inc. "International air cargo demand continues to exceed supply. In fact, the full impact of Stage III noise regulations, along with continuing industry fleet rationalization, is actually reducing long-haul cargo capacity. This bodes well for Atlas, as the world's largest 747 freighter operator, and further accentuates our expansion needs. With three firm aircraft deliveries this year, and efforts underway to acquire additional aircraft for later this year, we are committed to fulfilling the existing capacity needs and future growth requirements of our market. The impressive start we have seen thus far this year simply serves to give us added confidence in our continued growth prospects and in our positive outlook for Atlas going forward."

Significant events during the first quarter:

-- In January, Atlas announced a long-term B747 agreement with

China Southern Airlines of the Peoples Republic of China.

-- Also in January, the Company successfully completed EETC

debt financing for all of its remaining 2000 new aircraft

deliveries.

-- In January, Atlas signed a contract extension with

Aerofloral, one of the largest indirect air carriers

operating between Miami and South America.

-- In February, the Company announced that it had placed

another 747 freighter with Korean Air Lines, the world's

second largest non-U.S. air cargo carrier.

-- Also in February, Michael A. Chowdry, Chairman, CEO and

President of Atlas, was chosen as Aerospace Personality of

the Year as part of the Flight International Aerospace

Industry Awards, recognizing Mr. Chowdry's contribution to

the aviation industry.

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 air cargo capacity for some of the world's leading international carriers. Atlas operates scheduled flights on behalf of its customer airlines to 101 cities in 46 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 workforce; dependence on key personnel; and regulatory matters. For additional information regarding these and other risk factors, reference is made to the Company's Annual Report on Form 10-K for the year ended December 31, 1999.

                            Atlas Air, Inc.
                       SUMMARY FINANCIAL RESULTS
                    ($ Millions, except share data)

                                             Quarter Ended 3/31
                                          2000               1999
                                          ----               ----

Operating Revenues                       $166.4             $137.8

Operating Income                           43.2               36.7

Pre-Tax Income                             19.4               16.4

Income before Extraordinary Item and
 Cumulative Effect of a Change in
 Accounting Principle                      12.0               10.2


Extraordinary Item:
 Loss from Extinguishment of Debt,
  Less Applicable Tax Benefit of $3.9        --               (6.6)

Cumulative Effect of a Change in
Accounting Principle:
 Write Off of Start-Up Costs, less
  Applicable Tax Benefit of $0.8             --               (1.4)


Net Income                                $12.0              $ 2.2

Diluted Earnings Per Share:
 Before Extraordinary Item and
 Cumulative Effect of a Change in
  Accounting Principle                    $0.35              $0.30


Extraordinary Item                           --              (0.19)

Cumulative Effect of a Change
 in Account Principle                        --              (0.04)


Net Income                                $0.35              $0.07

Diluted Weighted Average Common Shares
 Outstanding (000's)                     34,608             34,327

Total Block Hours                        29,193             23,931