The Quarter That Was
By almost every measure, Atlas ended the year on a solid note or at least did so relative to expectations. Operating revenue grew 12% in the quarter as the company's total block hours increased by 11.3%. This growth was lumpy, though, as the ACMI business saw hours increase more than 18%, while the AMC charter and commercial charter businesses were down by mid-single-digit percentages. In other words, while the company is seeing less business shuttling equipment for the U.S. military, its "core" business is growing strongly.
Although revenue is growing nicely and the company is seeing customers fly above minimum contract levels, it's not all great news. The company has been transitioning away from military and spot market airfreight business, but those lines can be very profitable in peak times (when the U.S. government needs to get equipment to war zones, they do not hold out for the best possible price).
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