Atlas Air reports record earnings and increases its aircraft acquisition facility.

GOLDEN, Colo.--(BUSINESS WIRE)--Feb. 18, 1997--Atlas Air (NASDAQ:ATLS) today said that it earned a net profit of $13.4 million, or $.60 per share, for the quarter ended Dec. 31, 1996.

The earnings, which represented a record profit for the carrier, compared to a profit of $8.4 million, or $.43 per share, for the fourth quarter of 1995.

Net income for full year 1996 increased 112% to $37.8 million, or $1.76 per share, from a profit of $17.8 million, or $1.06 per share, for full year 1995. The 1996 results included a special charge of $.12 per share in the third quarter.

Revenues for the fourth quarter of 1996 increased 87%, to $104.7 million versus $56.1 million in the year-earlier period. Operating income rose 85% to $29.9 million from $16.2 million in the fourth quarter of 1995, representing a 29% margin.

For the year, revenues were $315.7 million, up 84% from full year 1995. Operating income was $88.1 million, or a margin of 28%, compared to an operating profit of $42.7 million in 1995, an increase of 106%.

Atlas Air's chairman and chief executive officer, Michael A. Chowdry, said: "Atlas Air's performance during 1996 has been truly satisfying. This company is successfully making the difficult transition from an entrepreneurial start-up carrier to one of the world's largest cargo airlines, at the same time that it has doubled the size of its operations.

"Also, during the year, Atlas was named the Cargo Airline of the Year, was the recipient of the prestigious Cargo Development Award from Air Transport World, and, most significantly, became ranked the most financially fit airline, passenger or cargo, in the world. On top of that, we recorded full year operating and net margins of 28% and 12%, respectively.

"To have achieved all that, while faced with the operational challenges of increasing the fleet size by 100%, including a completely unique aircraft type, is a testament to the men and women of Atlas who have made it all possible. We are proud of them and the company we have built."

Richard Shuyler, senior vice president and chief financial officer of Atlas Air, said: "Despite several challenges which Atlas faced as it entered the fourth quarter, the company performed financially very well. Atlas operated throughout the quarter without the benefit of an aircraft whose delivery to the company had been deferred to first quarter 1997 by its lessor.

"As we had hoped, however, strong seasonal flying by our customers helped to regain most of that revenue loss. In addition, the company's operating costs continued to be impacted by certain unique aircraft that were introduced into the Atlas fleet during the second half of 1996.

"Although the most difficult of the related operating challenges were reflected in Atlas' third quarter results, the company continued to incur extra expenses associated with these aircraft, causing unit costs to increase in the quarter. Nevertheless, Atlas turned in a strong operating performance, reflected by our 29% operating margin."

"Looking ahead," said Mickey Foret, president and chief operating officer of Atlas, "we see continued growth and the challenges that growth brings. Atlas will take delivery of a minimum of five additional aircraft during 1997, bringing the size of our all-747-200 fleet to 22 aircraft, a further expansion of almost 30%.

"We will be expending significant effort and resources to successfully integrate these aircraft and to reduce our overall unit costs. Indeed, one of our major focuses in 1997 will be to achieve further cost efficiencies in our flight and maintenance areas and to avoid the growing pains normally associated with growth of this magnitude."

Foret continued, "We foresee that growth continuing beyond 1997. In fact, we are currently in negotiations with a number of parties for the acquisition of additional aircraft for delivery beginning in 1998, specifically, aircraft that will also help to improve our overall fleet mix."

Increase In Revolving Aircraft Acquisition Facility

Atlas separately announced that it had received commitments, subject only to final documentation, from a syndicate of banks and financial institutions led by Bankers Trust and Goldman Sachs, to increase the size of its existing revolving aircraft acquisition facility by $100 million, from $175 million to $275 million.

Shuyler commented: "Given the sizable number of aircraft we are currently targeting to acquire, and looking ahead to our growth plans for the next few years, we decided to approach the market for a possible expansion of the facility. The positive response we received allowed us to double the amount we initially sought.

"The resulting $275 million line, which is exclusively reserved for the acquisition of aircraft, coupled with the company's 1996 year-end unrestricted cash balance of $125 million, will ensure our ability to achieve our ongoing growth objectives."

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 the Aircraft, Crew, Maintenance and Insurance for some of the world's leading air carriers including Emirates, British Airways, China Airlines, Cargolux, FastAir, Thai International Airways, KLM, LAS, Lufthansa, SAS and Varig, serving 62 cities in 38 countries.

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

                           Atlas Air Inc.
                     Summary Financial Results
                ($ millions, except per share data)


                          Quarter Ended Dec 31        Full Year
                             1996      1995        1996      1995

Operating Revenues          $104.7    $ 56.1      $315.7    $171.3
Operating Income              29.9      16.2        88.1      42.7
Pre-Tax Income                21.4      12.1        59.6      26.2
Net Income                    13.4       8.4        37.8      17.8
Earnings Per Share           $ .60     $ .43       $1.76     $1.06
Average Weighted Shares
 Outstanding (Thousands)    22,450    19,600      21,503    16,783
Total Block Hours           18,803    10,809      59,445    33,265

CONTACT: Atlas Air Inc., Golden

Richard Shuyler, 303/526-5050