View Full Version : Atlas profit warning

15th Oct 2001, 17:43
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

15th Oct 2001, 18:44
Of course the crewmembers' contract negotiations are at the "pay, benefits and hours of service" juncture. Go figure????

16th Oct 2001, 17:06
One foot in the grave, the other on a banana peel, even though planes are coming out of the desert and AMC flying is exploding......

16th Oct 2001, 23:02
I did get your email; Left my cell phone number with your local station manager. I can only guess the info wasn't passed on. Next time...Hope you had a good flight home.

17th Oct 2001, 06:07
To the management at Atlas air.

We know you read this Bulletin board. You are in charge of a great company with great people. Incredible ground staff and aviators with years of experience and a professional dedicated work ethic. Please take a page from SW and JB and remember that a happy employee is a productive employee. All can benefit from ALL of us working TOGETHER toward the common goal of long term success.

So many families that you are in care of today are not interested in the past, or who’s ego is bruised or who shows who is in “charge”. They are worried for their future and the future of their families. All of us, industry wide, are looking for innovators and leaders who can create success in the New World and new rules of the aviation world post 911.

Its time for all of us, on both sides to think outside the box. Look for the new niche in this new kind of world we find ourselves.

Please reply.

“You may say that I’m a dreamer, but I’m not the only one.”



Po Boy
17th Oct 2001, 07:04

Well said!!!! You're my Hero, in a time of so much uncertainty........ :)

Beaver Driver
17th Oct 2001, 08:02
Well Said. It goes without saying that if most of us that are still here didn't believe in the potential of this company and it's employees, we would have been long gone. I only wish managment believed in us and trusted us as much as we believe and trust in each other. Thanks.

17th Oct 2001, 17:34
Fellow Airman,

You would think that in the busiest time in Atlas' near term history that "Rick" would come out with a voice mail that is at least somewhat positive. A CEO that wasn't trying to terrorize his employees would come out with some sort of a positive tone as to the future of the airline. Instead, all we get is a negative, doom and gloom tone coming out of the front office.

I liken it to the stock market recession. The Market goes down, and the media reports it, and what happens? The people trading the stocks on the market hear the negativity from the media. So, what do they do? The next day they go out and sell. Hence, creating a negative spiral effect that is hard to get out of. If "Rick" was at all a leader, he would try to spawn a positive outlook and tone around the company. Instead, he paints a horrible picture, causing his employee morale to sink to very low levels. He then asks us to keep up the good work and support the airline through these "bad times." Well, he's creating the same horrible spiral effect that we are seeing in the market. It's very irrational and horribly disturbing and irresponsible, in my opinion. I'm not saying that he should lie to us, but for Christ sake, at the busiest time in Atlas' history in a long time, his voice mail should be something like this, "Hi, this is Rick. Wooo Wooo!, Atlas is doing great and all of you should be very proud of the job that you are doing! From me to you, thanks for all the hard work!" Do we get that?

To the guy who wrote the plea to AAMT. Great try, and I think that most of the crew force feels the same way. But expect a reply? Not. AAMT is sitting back reading your post thinking to themselves...... Hmmm? "This is perfect! The pilots seem desperate. We've got them right where we want them." Do you honestly think that they give a crap about you? If they did, wouldn't things be a little different. To the MEC, if we go up to Purchase, we are only playing into their hands. IT's A TRAP!!!!

I haven't posted in a long time for a reason. It's cause it doesn't do anything but give the other side ammo against the pilot group.

See you later,

17th Oct 2001, 20:15
Very Well said boxer_mover, but even better put Heavy whale. As a pilot with over 20 yrs left (god willing)I have found a home and would like to stay here, but with the current AAMT, none of us knows if will we have a job tommorow. I can only pray that RS and his coharts will wake up and run this airline like it should be. There is NO REASON WHY ATLAS CANNOT BE THE MOST PROFITABLE AIRLINE IN THE WORLD TODAY!!!
every good establishment is only as good as it,s corner stones,YOU cannot expect to excell if you don't take care of your workers. Economics101 :rolleyes:
PS Please forgive me, for my grammer and spelling. As a freight dog I've been flying all night.

[ 17 October 2001: Message edited by: fightson ]

22nd Oct 2001, 19:25

I will speak in generalities and anyone tell me if this applies to you and your airline.

Imagine that your union in negotiating a contract with your airline management for higher wages and better working conditions.

During this process, management creates another company and hires NON-UNION (low wage) pilots.

Now imagine that these “non-union” , pilots are assigned to fly your routes with your equipment or assigned to fly with you as your FO, or Captain or Flight Engineer.

This would be equal to United airlines hiring non-union (low wage) pilots to "save" money and flying them side by side with the "high wage" greedy union pilots.

I ask anyone to explain to BM why the people who dreamed up this horrible tactic, will do everything in their power against you and the union. Very similar things are going on at the other majors too but in a differnt way (RJ's...).

I think that you can best understand why things are this way is that airline management see aircrew as the enemy. Think about it. When you negotiate a contract, you are NOT sitting down as friends and happily finding ways to make the best of things for both sides. You do battle with lawyers. You fight, argue, issue dis-information, maneuver behind the scenes, create unrest and confusion, stall, cry poverty, put one group against the other, divide and conquer, create diversions, take advantage of any world event that suites your purpose……..

You mentioned SW and JB. Yes, they do NOT see their employees as the enemy and look at how they are doing? They are thinking “outside the box” and look at their success!

Bottom line BM, I hope you get the answer you want. I know I sound pessimistic, but we on this BB have seen this sort of thing for decades. What you are pleading for is management to change their basic personalities and the way they view themselves and the world. Not an impossible thing, but you tell me, how many times have you seen a person totally change for the better? You would think that 911 would have changed everybody for the better, and maybe for a short time it did, but we will find out very soon just how profound and permanent those changes were.

[ 22 October 2001: Message edited by: Move_It ]