PURCHASE, N.Y.: Atlas Air Worldwide Holdings has reported a net income of $93.8 million for 2013 compared with $129.9 million in 2012. Free cash flow increased to $273.1 million from $208.5 million over the period.

Fourth quarter earnings totaled $30.0 million compared with $52.4 million in the same period the previous year. President and CEO William Flynn said the fourth quarter results reflected a special charge of US$18.6 million relating to the company's decision to permanently park two 747-400BCFs it had leased following delays in the delivery of more 747-8 freighters.

In 2013 the company used its free cash in the purchase of two 747-8F aircraft plus three 777-200LRF aircraft for the company's dry leasing business.

Flynn said he is "confident about the resilience of our business model and our ability to leverage the scale and efficiencies in our operations. Reflecting the business initiatives we have undertaken and the investments we have made, we have transformed the company to deliver meaningful earnings in any environment."

This year the company expects a "steeper and faster" decline in military demand for outsourced airlift - particularly cargo - than previously expected with a drop in earnings of US$0.70 a share compared to 2013.

Acknowledging that global airfreight volumes have been "essentially flat" for the last three years, Flynn noted Atlas has remained profitable throughout this period by "capitalizing on strategic initiatives to strengthen and diversify our business mix; generate operating efficiencies and continuous improvement gains; and enhance our portfolio of assets and services."

He added: "As we have noted previously, airfreight remains a long-term growth industry despite current market challenges. We have transformed our business and expect to be profitable in any environment. We are well-positioned to capitalize on market improvements and to continue to focus on the long-term growth of our business."