Shares of Atlas Air Worldwide (NASDAQ:AAWW) edged up nearly 9% Tuesday after the airline said it anticipates fiscal 2010 earnings exceeding expectations.
The operator of the world’s largest fleet of Boeing 747 freighter aircrafts is expecting earnings of $5.30 a share, up from its earlier view of $4.35 a share.
The guidance, which excludes one-time items, is a reflection of stronger airfreight demand in global markets and continued tight supply.
Atlas Air CEO William J. Flynn said the company expects fiscal 2010 to be a “record year” for both commercial airfreight demand and the company, attributing the success to higher shipments of new, high-tech products, and just-in-time- inventory management practices by businesses.
Flynn said the company also anticipates continued strength in its commercial charter segment through the peak season.
Sales growth in those segments is expected to offset moderation in AMC charter volumes and yields compared with the first half of the year.
AMC charter saw much higher revenues in the earlier period due to a substantial amount of 747-400 planes flying at premium rates related to the delivery of M-ATVs to Afghanistan.