Atlas Air Worldwide Updates Business Outlook

PURCHASE, N.Y.—(BUSINESS WIRE)—Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), a leading global provider of outsourced aircraft and aviation operating services, today provided an update of its business outlook prior to a scheduled presentation to investors at the CJS Securities New Ideas for the New Year conference on January 16.

As previously announced, Atlas Air Worldwide anticipates that reported and adjusted fully diluted earnings in 2012 will total more than $4.65 per share. The company intends to report results for the fourth quarter and full year on February 13, 2013.

Formal guidance for 2013 will also be provided on February 13. Guidance and ultimate performance for the year will be shaped by global economic growth and airfreight market conditions, which are likely to remain subdued well into the year. Despite these pressures, the company expects to perform well in 2013, with earnings for the year currently anticipated to be in line with full-year 2012 results.

Slides supporting the company’s January 16 presentation and summarizing its business outlook may be viewed and downloaded from the company’s website, www.atlasair.com, by clicking on the link to “Current Investor Relations Presentation” in the upper right-hand corner of the home page.

Atlas Air Worldwide has also completed a review of its capital allocation strategy. The review addressed the appropriate allocation of the company’s current and expected future cash balances between investments to support business growth, balance sheet strength, and returns of capital to stockholders.

The company anticipates that cash in excess of business investments and balance sheet maintenance requirements will be available for share repurchases. It intends to begin actively purchasing shares in the first quarter of 2013 after filing its Form 10-K annual report for 2012 on or about February 13.

Share purchases would recommence under a previously announced $100 million share repurchase program. Up to $81 million remains available for purchases under that program. Repurchases of shares may take the form of an open market repurchase program, accelerated stock repurchase program, privately negotiated transactions, or a combination of these methods. Actual timing and amount of the repurchases will depend on market conditions.

Expected results in 2012 highlight the diversification of the company’s business model and ability to leverage core competencies to perform well in all economic conditions. During the year, the company modernized its fleet by adding four new B747-8 Freighters; placed the four 8Fs and two B747-400Fs in ACMI (aircraft, crew, maintenance and insurance) service; and capitalized on new organizational capabilities, including military passenger flying, asset-light CMI (crew, maintenance and insurance) operations, and B767 cargo and passenger service.

Earnings in the company’s core ACMI segment are expected to grow significantly in 2013, driven by an increase in the number of B747-8Fs in ACMI service and an increase in CMI flying compared with 2012.

AMC Charter and Commercial Charter segment contributions are expected to decline in 2013, reflecting a moderation in military cargo and passenger block-hour volumes as well as commercial charter market demand and yields.

Segment results in 2013 will also be affected by an increase in total aircraft maintenance expense, with additional conditions-based engine overhauls, initial C-level airframe checks on three B747-8Fs delivered in the fourth quarter of 2011, and C-level checks on passenger aircraft for AMC and Commercial Charter flying. In addition, unallocated expenses are expected to increase as the benefit from capitalized interest related to the company’s purchase of nine 8F aircraft concludes with the final two deliveries expected in the first half of 2013.

Atlas Air Worldwide is executing on a strategic plan that has built a resilient company with a strong balance sheet. The company’s model is working as expected amid difficult economic conditions and a related contraction in airfreight demand.

Airfreight remains a vital element of the global economy, and the company is well-positioned to serve its customers, the airfreight markets, and to capitalize on a recovery in world demand and international trade.

The company remains focused on the long-term growth of its business, and is leveraging its core competencies, industry leadership and deep understanding of its markets to deliver advantage and value to its customers and stockholders.