Atlas Air near decision on new jets to meet growing cargo demand

Atlas Air Worldwide Holdings Inc., one of the world’s largest air cargo operators, plans to decide on orders for several new freighter jets as it sees “significant opportunity” to grow, Chief Executive Officer Michael Steen said.

“I certainly envision that we are going to grow significantly both fleet wise and as well as from a profitability perspective over the next few years,” Steen said in an interview in Hong Kong on Wednesday.

The head of the world’s second-biggest cargo operator expressed confidence in the long-term outlook for the industry thanks to the growth of e-commerce demand. He said the company, which last year was purchased by an investor group led by Apollo Global Management Inc., can capitalize on a looming shortfall of supply, with about 125 widebody freighters nearing their retirement age.

The New York-based carrier, with an all-Boeing Co. fleet of 113 freighters — including the world’s largest fleet of 747s — could order several more cargo jets and is mulling new generation Airbus SE A350 freighters or Boeing’s updated 777X equivalent among its choices.

Steen said the group was in “relatively advanced stages” to place more orders, though wanted clarity on delivery schedules from planemakers before making any decision.

The air cargo industry has started 2024 positively with healthy demand carrying on from last year. That has been aided by constraints in the shipping industry following attacks on boats in the Red Sea that are hurting global supply chains.

“Demand remains quite healthy,” Willie Walsh, director general of the International Air Transport Association, said Tuesday. The organization is hosting its global cargo conference in Hong Kong. “The general cargo environment remains very encouraging.”

Atlas’s businesses includes its joint venture with DHL. The carrier also flies equipment for Formula 1 races, National Football League players and the stages for pop star Taylor Swift’s concerts.