Atlas Air Worldwide Celebrating 25 Years in Anchorage August 2017 - - PowerPoint PPT Presentation

Atlas Air Worldwide

Celebrating 25 Years in Anchorage August 2017

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Atlas Air Worldwide

We manage diverse, complex and time-definite global networks We deliver superior performance and value-added solutions across our business segments We manage a world-class fleet to service multiple market segments We are strategically positioned in a strengthening market and focused on new opportunities to continue to deliver future growth

Ownership

100%

Ownership

100%

Ownership

51% (49% DHL)

Ownership

100%

3 Atlas Air * Includes to-be-converted aircraft

Our Current Fleet – July 2017

11 Boeing 777s

5 CMI 777Fs 6 Titan 777Fs

7 Boeing 737s

5 737-400Fs 1 737-300F Titan 1 737-800 passenger Titan

35 Boeing 767/757s

28 767-200/300Fs* 6 767-200/300 passenger 1 757-200 freighter Titan

Total Fleet: 95 Operating Fleet: 86

…Heading to More than 100

aircraft …with Over 40 B767s

42 Boeing 747s

10 747-8Fs 24 747-400Fs 4 747-400 passenger 4 Boeing Large Cargo Freighters (LCFs)

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Global Operating Network

210,444 Total Block Hours Operated in 2016* 39,882 Flights* 425 Airports in 119 Countries 730 Charters Completed 80+ Unique Customers

Astral Boeing BST DHL Etihad Qantas Panalpina SonAir Scheduled Service

EZE LIM

* Totals including Southern Air, acquired April 7, 2016

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The Atlas Story in Anchorage

• Atlas’ history starts in Anchorage with our first customer-

China Airlines

• We’ve continued to expand and have grown operations

significantly over the past several years

• Over 120 Atlas Air employees reside in Alaska
• Anchorage is Atlas’ largest 747 crew base with 377 of

1,800 pilots based in ANC

• The company purchases between 1,500 and 2,000 hotel

rooms in Anchorage on a monthly basis

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Anchorage - Linking the Global Supply Chain

• Natural geographic advantage
• Within 9.5 hours of 90% of major commercial

centers

• Halfway point between US East Coast and Asia
• Alaskan commitment to cargo industry
• Improved infrastructure at ANC
• Cargo transfer rights
• Maintain a favorable business and regulatory

environment

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Anchorage Customers

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Anchorage Partners

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Year-to-Year - Arrivals and Departures

PANC/ANC Operations

2012 2013 2014 2015 2016 DEP 2440 2493 2757 3052 2957 ARR 2439 2491 2757 3052 2962 TOTAL FLIGHTS 4579 4984 5514 6104 5919

# of flights (thousands)

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Year-to-Year – Fuel Uplift

10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000

2013 2014 2015 2016

2013 2014 2015 2016 FUEL UPLIFT (USG) 52,142.17 57,783,815 63,637,654 60,032,508

PANC/ANC Fuel Uplift (USG)

U.S. Gallons (Million(s))

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Atlas Air’s Arrival and Departure Fees at ANC

Fees 2012 2013 2014 2015 2016 Landing Fee 5,094,720 5,201,208 5,756,616 6,372,576 6,184,656 Aircraft Parking Fee 800,393 817,122 904,378 1,001,147 971,625 Totals $5,898,113 $6,018,330 $6,660,994 $7,373,723 $7,156,281

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Megatrends Driving Airfreight Growth

Age of Urbanization

• Increases in urban consumption

by the growing middle class will drive increasing trade

Accelerated Technology

New mobile devices and electronics drive airfreight demand Reduced product renewal cycles for different product types requires a faster supply chain, with significant use of airfreight

Greater Global Connections

Airfreight network strength and flexibility has significant value in an increasingly interconnected global marketplace

Changing Demographics

Demographic trends suggest significant growth in Asia, Africa and South America Trends will require an efficient Air network to serve effectively

Source: McKinsey Global Institute.

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Total $83.4B

Sources: Flight Global, U.S. DOT F41, airline reports, and Boeing estimates (2015 data)

Freighters are Critical to Compete in Air Cargo Markets – Especially in Time-Definite Networks

Airlines operating freighters generate 90% of industry revenues

$33.6B $32.8B $8.5B $8.5B

14 Atlas Air Sources: IATA, ICAO, Euromonitor, Forrester, eMarketer, BofA Merrill Lynch Global Research estimates, Company Public Reports

Global Airfreight Industry Performance Trends

Global Airfreight Market

• International freight tonne kilometers (FTKs) flown up 3.8% in 2016
• Very strong FTK growth anticipated in 2017
• PMI Index at 55 for 2017 and semi-conductor sales +18% for 2017

Global Express Market

• The International Express market is showing robust growth
• 5.8% CAGR since 2011 vs. nominal CAGR for International FTK’s
• The Express segment benefiting from the e-Commerce growth

Global e-Commerce Market

Total Global Airfreight Tonnage Growing from Record Levels

Freight Tonnes (Millions)

2.5% 6.4% 4.6% (0.7)% (8.9)% 19.5)% 0.4% (1.0)% 1.4% 4.0% 1.5% 3.3% >7.5% (F)

International Express Market – DHL, FedEx and UPS

Change in Demand (Base year 2011 - 100%)

Global e-Commerce Estimates ($ Billion) Overall e-Commerce market penetration is still low FTK and AFTK Growth

Supply vs. Demand

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e-Commerce only accounts for ~10% of global retail sales US e-Commerce spend $385B in 2016 – forecasted to grow to $600B by 2020 China: 700M internet users – 50% mobile penetration – 10% e-Commerce penetration USA: 237M internet users – 73% mobile penetration – 9% e-Commerce penetration India: 300M internet users – 25% mobile penetration – 2% e-Commerce penetration

Source: Forrester, Statista, eMarketer

e-Commerce market in Asia will grow

e-Commerce Penetration

(as percentage of global retail sales)

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Thank You