Atlas Air Reports Record Third Quarter Earnings; Highest-Ever Operating Profit.

GOLDEN, Colo.--(BUSINESS WIRE)--Oct. 21, 1998--Atlas Air, Inc. (NYSE:CGO) today reported net income for the quarter ended September 30, 1998 of $12.7 million, or $.57 per diluted share, a record for third quarter earnings and the second best quarter in the Company's history.

These results represent a 105% increase over third quarter 1997 net income of $6.2 million, or $.28 per diluted share. Revenues for the third quarter 1998 increased 5% to $109.2 million versus $104.2 million for the same quarter in 1997, resulting in a 12% net margin for this year's quarter.

Operating income for the third quarter of 1998 was $35.7 million, the best quarterly performance in the Company's history, as compared to operating income of $21.7 million in the third quarter of 1997. The 1998 quarter's results represented a 33% operating margin.

Net income for the first nine months of 1998 was $28.1 million, or $1.25 per diluted share, as compared to $14.3 million, or $.64 per diluted share, for the year-earlier period. Operating income for the first nine months of 1998 was $88.8 million, compared to $55.3 million for the same period in 1997, excluding non-recurring items.

Stephen C. Nevin, Vice President-Finance and Chief Financial Officer, said, "We are obviously pleased with our third quarter results, which represent significant year-over-year improvements in revenues, operating income and net income. We are particularly gratified to have achieved this despite the utilization of fewer aircraft this year as compared to last year. Unit revenues actually increased by 10%, even while average aircraft declined by 2%. This positive trend gives us added confidence in our favorable financial expectations for the remainder of this year."

Richard H. Shuyler, Executive Vice President, said, "Once again, our financial results confirm the ability of Atlas Air to continue to operate profitably even in the face of the world's current economic problems. Our Asian customers continue to fly well above their minimum guarantee levels, and we expect further increases in demand for air cargo from all our customers as we enter the peak fourth quarter season. The continued strength of the air freight market through the depth of the current economic turndown causes us to look forward to a very successful 1999 and beyond."

Michael A. Chowdry, Atlas Air's Chairman, Chief Executive Officer and President, said, "With the successful introduction of our first two B747-400F aircraft into ACMI contract service, Atlas Air and its employees have confirmed the viability and profitability of this new aircraft in our business model. At a time when many airlines are significantly reducing passenger capacity, freighter aircraft continue to be in great demand. Indeed, while passenger aircraft orders are being cancelled or deferred by many airlines, freighter aircraft deliveries continue to be taken at record levels by those same carriers. In a period when other aircraft operators will soon be reducing capacity because of the implementation of Stage 3 noise regulations, Atlas Air will be meeting the world-wide demand for air cargo capacity with the most capable and efficient 747-200 and 747-400 freighter fleet in the world."

During the third quarter, Atlas Air acquired under a long-term leverage lease structure its first two B747-400F aircraft, and placed them under long-term ACMI contracts with British Airways and Cargolux, and subsequently announced a second 747-400 contract with Cargolux. Atlas also forward-purchased its 20th used B747-200F aircraft, currently operated by Air France, and expects to place this aircraft into ACMI service by the second quarter of 1999. Atlas also announced the acquisition of three further used 747-200s from Cargolux, to enter service for Atlas by 1998-year-end. Finally, Atlas announced new long-term ACMI contracts with Iberia Airlines of Spain.

Atlas Air is a United States certificated air carrier that operates the world's largest fleet of 747 freighters under long-term ACMI (Aircraft, Crew, Maintenance and Insurance) contracts. Atlas Air's customers are some of the world's leading air carriers, including Alitalia, British Airways, Cargolux, China Airlines, Emirates, Fast Air, Iberia Airlines, KLM, LAS, SAS, and Thai International Airways, serving a total of 62 cities in 37 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, 1997 and the Quarterly Report on Form 10-Q for the period ended June 30, 1998.

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

                            Atlas Air, Inc.
                       SUMMARY FINANCIAL RESULTS
                    ($ Millions, except share data)
                          Quarter Ended 9/30

                                          1998             1997

Operating Revenues                       $109.2            $104.2
Operating Income                           35.7              21.7
Pre-Tax Income                             20.2               9.8
Net Income                                 12.7               6.2
Diluted Earnings Per Share               $ 0.57            $ 0.28
Weighted Average Shares
   Outstanding (000's)                   22,534            22,450
Total Block Hours                        18,926            19,937

                            Atlas Air, Inc.
                       SUMMARY FINANCIAL RESULTS
                    ($ Millions, except share data)
                        Nine Months Ended 9/30

                                          1998              1997

Operating Revenues                       $276.8            $280.1
Operating Income                           88.8              55.3(a)
Pre-Tax Income                             44.7              23.2(a)
Net Income                                 28.2              14.3
Diluted Earnings Per Share               $ 1.25            $ 0.64
Weighted Average Shares
   Outstanding (000's)                   22,562            22,450
Total Block Hours                        51,142            52,921

(a)  Excluding Non-Recurring Charges