Atlas profit warning
Atlas expects 3Q loss, questions analysts´ estimates
PURCHASE, New York, Oct 12 (Reuters) - Atlas Air Inc<CGO.N> expects a third quarter loss and said some analysts´ estimates haven´t fully taken into account the attacks on September 11, Atlas said Friday.
"We want to get people´s expectations in line with reality," Rachel Berry, an Atlas spokeswoman, said in a telephone interview. She declined to say if Atlas´ earnings, which will be released November 1, will be worse than some analysts predicted.
Richard Shuyler, Atlas´ chief executive, said in a statement "we anticipate incurring a loss in the third quarter."
Gregory Burns, an analyst at J P Morgan, this week cut his third quarter Atlas forecast for earnings per share to a loss of $0.10 from $0.00.
"Increased costs and lower revenue make it unlikely for (Atlas) to meet our 3Q01 forecast."
Burns was travelling Friday and unavailable for comment.
After the September 11 attacks, Atlas and other carriers were grounded for four days. Then the all-cargo carrier started flying a lot of military operations, Berry said.
However, the third quarter closed September 30, so Atlas could not book that much military business, she said. Also, the military flying is short term, more like a charter, instead of a long-term commitment.
"We´re still flying for the military and happy to do it, but we don´t know how long this will last," Berry said.
Atlas received $10.1 million from the Department of Transportation as its first installment under the Airline Stabilization Act.
The payment was received after September 30 and will be reflected in the fourth quarter, Shuyler said.
This money, along with a seasonally stronger fourth quarter level of operations and increases in charter and military flying "will have a positive effect on fourth quarter financial results," Shuyler said.
Atlas has 37 Boeing 747 freighters, making it the third largest air cargo fleet in the world, behind only FedEx Express and United Parcel Service.
It has 12 Boeing 747-400 freighters able to lift up 120 tonnes as well as 22 B747-200s and 3 B747-300. Both of the latter types can carry up to 100 tonnes