Atlas Air has reported net income of $355.9 million ($10.53 per diluted share), adjusted net income of $418 million (or $14.23 per diluted share) and earnings [EBIDTA] of $899.2 million for 2022, with the fourth quarter (Q4 2022) equivalents coming in at $126 million, $153.1 million and $286.8 million, respectively. EBIDTA was down on the $1.1bn reported for the previous 12 months.
Revenue hit $1.21bn in Q4 2022 compared with $1.16bn in 2021, with volumes at 84,916 block hours compared with 91,985 the year before. Full-year revenue hit $4.5bn, up $500 million on 2021.
The revenue increase stemmed from charges going up on the back of surging fuel costs. But the lower block hours were caused by the "impact of severe winter storms and a reduction in less profitable smaller gauge CMI flying".
Reported earnings in the fourth quarter of 2022 also included an effective income tax rate of 22.6%. "On an adjusted basis, our results reflected an effective income tax rate of 21.1%," Atlas said.
Atlas added that its dry leasing segment revenue "was relatively unchanged compared with the prior-year period".
"Unallocated income and expenses, net, decreased during the quarter primarily due to a $14.1 million adjustment to paid time-off benefits recorded in 2021 related to our new CBA, lower interest expense related to our adoption of the amended accounting guidance for convertible notes and higher interest income," the company explained.
Year-end cash was $773.9 million compared with $921 million on December 31 2021, a "change in position" Atlas said was down to "cash used for investing and financing activities, including $185.6 million for pre-delivery payments for our new aircraft, $216.6 million related to the settlement of our 2015 convertible notes and $100 million for our accelerated share repurchase programme".
Noting the delivery of Boeing's last-ever 747 aircraft, Atlas president and chief executive John W Dietrich said 2022 "was one of the best years in Atlas’ history, and we are pleased that we placed all eight of our new and incoming aircraft under long-term contracts".
Atlas said that its proposed acquisition by an investor group led by funds managed by affiliates of Apollo Global Management, together with investment affiliates of J.F. Lehman & Company and Hill City Capital, was going ahead.
"The company is working to complete the transaction in the first quarter of 2023, and continues to make progress toward obtaining necessary approvals. At this time, we are awaiting final approval from the US Department of Transportation and have received all other required shareholder and regulatory approvals," it added.