DOW JONES NEWSWIRES
Atlas Air Worldwide Holdings Inc. (AAWW) said the Department of
Defense cleared its namesake airline to begin providing passenger
charter service for U.S. military personnel, complementing its
military cargo charter business.
The move represents diversification from the company's
traditional air-freight business, which is enjoying improving
financial performance. Cargo haulers of all types have benefited
from increased freight traffic in the wake of the economic
downturn. In February, Atlas Air reported its fourth-quarter
earnings topped analysts' expectations and gave an upbeat outlook
for the current year.
Under the new service, slated to start in May, Atlas Air will
begin flying a Boeing Co. (BA) 747-400 passenger airplane acquired
under an operating lease. It sees the move having a "moderate
impact" on its profit in 2011 and expects "meaningful earnings
growth" from passenger operations starting next year, President and
Chief Executive William J. Flynn said.
Atlas Air shares recently traded at $68.96, up 1.8%. The stock
is up about 22% in the past year.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com