As it geared up to take a history-making delivery of Boeing's last-ever jumbo jet on January 31, Atlas Air announced earnings fell in 2022, mainly due to increased pilot costs related to a new collective bargaining deal and higher overtime pay.
"Net income and Adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] were negatively impacted by lower aircraft utilisation and higher crew travel costs driven by the operational disruptions noted above, as well as higher commercial passenger airfare rates," Atlas said in a filing to the US Securities and Exchange Commission (SEC).
Atlas estimates showed operating revenue of $4.03bn, net income of $493.3 million and adjusted EBIDTA of just over $1bn.
"The increase in Covid-19 cases and severe weather events also adversely impacted our crew availability and our ability to position them due to the widespread and well-publicised cancellations of commercial passenger flights," it added.
The impact of the disruptions was "partially offset" by "increased yields, net of fuel, primarily driven by new and extended long-term contracts, increased cargo flying for the US military and lower heavy maintenance expense", Atlas reported.
At the same time Atlas's operating revenue increased, "primarily due to an increase in revenue per block hour, partially offset by a reduction in block hours".
Revenue per block hour rose, it said, "due to higher fuel prices and yields, net of fuel, including the impact of new and extended long-term contracts and increased cargo flying for the US military".