Thursday, December 08, 2005 --   Atlas Air Worldwide Holdings, Inc. (AAWW) (OTC: AAWW.PK), a leading provider of global air cargo services, today reported net income of $29.9 million, or $1.44 per diluted share, on revenues of $404.9 million for the quarter ended September 30, 2005. The September quarter included operating income of $68.0 million and pretax income of $50.6 million, both of which reflect a pretax insurance gain of $7.5 million and post-emergence costs of $0.5 million.

Commenting on AAWW's earnings report, President and Chief Executive Officer Jeffrey H. Erickson said: “Our strong performance, despite a short-term labor action mainly affecting our Scheduled Service segment in the latter half of September, benefited from the relatively full utilization of our aircraft, the continued optimization of available capacity in favor of ACMI leasing and AMC charter operations, and higher unit revenues in all four of our service types during the quarter. In addition, total operating expenses declined even though we experienced higher aircraft fuel and labor costs.

“Looking at our fourth-quarter prospects,” Mr. Erickson continued, “we expect to see an acceleration of scheduled maintenance activity in part due to our relatively high aircraft deployment during 2005, which in turn will moderate our results somewhat for the final three-month period of the year. Nonetheless, we expect healthy fourth-quarter earnings.”

For the nine months ended September 30, 2005, AAWW reported net income of $46.4 million, or $2.25 per diluted share, on revenues of $1.1 billion. Operating income in the first nine months of 2005 totaled $132.3 million, while pretax income reached $79.0 million. Both amounts include the pretax insurance gain of $7.5 million and $3.0 million of post-emergence costs.

Conference Call

Management will host a conference call to discuss the Company's third-quarter 2005 financial and operating results at 9:30 A.M. Eastern Standard Time on Thursday, December 8, 2005.

Interested parties are invited to listen to the call live over the Internet at www.atlasair.com or www.earnings.com.

For those unable to listen to the live call, a replay will be available on the above Web sites for 90 days following the call. A replay will also be available through December 15, 2005 by dialing (800) 405-2236 (domestic) and (303) 590-3000 (international) and using Pass Code 11047574#.

Successor Company Versus Predecessor Company

AAWW completed a financial restructuring and emerged from Chapter 11 bankruptcy proceedings in July 2004. In conjunction with its emergence, AAWW applied the provisions of fresh-start accounting effective as of July 27, 2004, at which time a new reporting entity was deemed to be created. As a result, readers of AAWW's financial statements are cautioned that reported historical financial statements of the Company for periods prior to emergence are not comparable with those for periods after emergence.

Notwithstanding the lack of comparability, the following commentary has been prepared to facilitate a quarter-on-quarter discussion of AAWW's operating results. The analysis below, which is based on a combination of the results for the periods July 1, 2004 through July 27, 2004 and July 28, 2004 through September 30, 2004, has not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). As noted, results after July 27, 2004 are not on the same basis as results prior to that date.

3Q05 Performance Highlights Versus 3Q04

Revenue in the third quarter of 2005 totaled $404.9 million, an increase of $54.7 million compared with revenue of $350.2 million in the third quarter of 2004. Operating expenses, meanwhile, decreased to $336.9 million from $354.7 million in the same period last year.

Operating income of $68.0 million in the third quarter of 200