Atlas Air Worldwide Announces Interim Agreement to Enhance Southern Labor Contract

PURCHASE, N.Y., July 17, 2018 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced an agreement between its Southern Air, Inc. subsidiary and Local 1224 of the International Brotherhood of Teamsters (IBT) for interim enhancements to the collective bargaining agreement covering pilots employed by Southern Air.

The interim agreement increases pay rates for Southern Air pilots to the same wage scales as provided to pilots of Atlas Air, Inc. It also provides for a ratification bonus and other terms and conditions that are comparable to those provided to their colleagues at Atlas Air.

The agreement is subject to ratification by the Southern Air pilots in a process that will take place during the next several weeks.

“This agreement to benefit our Southern Air pilots is the result of collaborative and productive discussions with the IBT leadership as we continue on our path toward the merger of Atlas Air and Southern Air and completing a joint collective bargaining agreement,” said Atlas Air President and Chief Operating Officer John W. Dietrich. “We are grateful for the IBT’s hard work and commitment during the entire process.”

The expected financial and operating impacts of the tentative agreement in 2018 were incorporated in the company’s earnings growth framework announced on June 25, 2018. As indicated, the company anticipates that its full-year 2018 adjustednet income will grow by 35% to 40% compared with 2017.

The company provides guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.

Mr. Dietrich added: “We appreciate the professionalism and contributions of our Atlas Air and Southern Air crewmembers and the excellent service they provide every day. And we remain committed to completing the bargaining process for a joint contract covering all of our pilots in a timely manner and in the best interests of all parties.”