Atlas Air net income rises 47 percent.

GOLDEN, Colo.--(BUSINESS WIRE)--Oct. 28, 1996--Atlas Air Inc. today announced net earnings for the quarter ended Sept. 30, 1996 of $8.2 million, or 37 cents per share, as compared to a net profit of $5.6 million, or 32 cents per share for the 1995 third quarter.

The company's operating profit for the September quarter increased to $20.0 million, as compared to a $12.9 million operating profit for the 1995 third quarter. Third quarter results included the impact of the costs and accounting charges associated with the introduction of certain aircraft into the company's fleet, totaling approximately $2.6 million, or 12 cents per share, on an after-tax basis.

Revenues for the 1996 third quarter increased to $79.7 million, versus $47.8 million in the prior year period. Total aircraft hours for the 1996 September quarter were 15,444, up from 9,076 in the third quarter of 1995.

Through the first nine months of 1996, Atlas recorded net income of $24.4 million, versus $9.5 million in the comparable 1995 period. Operating profits for the nine months ending Sept. 30, 1996 were $58.1 million, as compared to $26.5 million for the year-earlier period. Revenues and aircraft hours for the 1996 nine months increased to $210.9 million and 40,642 hours, respectively, from the 1995 levels of $115.1 million and 22,456 hours, respectively.

Richard Shuyler, senior vice president and chief financial officer of Atlas Air, said, "The Company is continuing to implement its 1996-97 fleet growth plan. Since the first quarter, Atlas has now taken delivery of four freighter aircraft from Federal Express and the first of six aircraft being acquired from Thai Airways. At the same time, Atlas has deferred delivery of one of the Federal Express aircraft until the first quarter of 1997, at the request of Federal Express."

Shuyler continued, "The integration of certain of these aircraft into the Company's fleet has been more difficult and costly than anticipated, as evidenced by the charges incurred in the third quarter, but Atlas has taken a number of measures to improve that process. If, as a result of these measures, the Company returns to more normalized operations in the fourth quarter, the Company believes it will meet its business plan for the balance of the year. In the meantime, the Company is continuing to prepare for the delivery, as scheduled, of the remaining five aircraft from Thai through 1997, and is looking ahead to further fleet expansion in 1998 and beyond."

Atlas Air also confirmed the renewal of a significant contract. "We are pleased to confirm today that one of our most-valued customers, British Airways, has renewed its existing ACMI contract with Atlas," stated Michael Chowdry, chairman and CEO of Atlas. "The renewal by British Air is a testament to the benefits that Atlas can bring its customer partners. British Air entered into its relationship with Atlas just a year ago on a trial basis, and has now renewed for a longer term than the expiring contract. In fact, in a recent press conference, British Air's CEO, Robert Ayling, singled out Atlas Air and pronounced their experience with Atlas as 'quite successful.' We are proud to extend our relationship with this important customer."

Atlas Air is a United States certificated air carrier that operates a fleet of eighteen 747 freighters with an additional six aircraft scheduled for delivery throughout 1996 and 1997. Atlas operates its fleet under long-term contracts with some of the world's leading air carriers including Emirates, British Airways, China Airlines, Cargolux, FastAir, Thai International Airways, KLM, Lufthansa, SAS, Swissair, and Varig, serving 52 cities in 25 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 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 Dec. 31, 1995.

Atlas Air trades on the NASDAQ under the the symbol ATLS. -0-

                          Atlas Air Inc.
                    Summary Financial Results
                          ($ Millions)

                           Quarter Ended 9/30   Nine Months Ended 9/30
                             1996       1995        1996       1995

Operating revenues          $79.7      $47.8       $210.9     $115.1

Operating income             20.0       12.9         58.1       26.5

Pre-tax income               12.8        8.1         38.2       14.1

Net income                    8.2        5.6         24.4        9.5

Earnings per share          $ .37      $ .32       $ 1.15     $  .60

Average weighted shares
 outstanding (thousands)   22,430     17,530       21,185     15,843

Total block hours          15,444      9,076       40,642     22,456

CONTACT: Atlas Air Inc., Golden

Richard Shuyler, 303/526-5050