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

Atlas Air Worldwide Celebrating 25 Years in Anchorage August 2017

Atlas Air Worldwide Ownership Ownership Ownership Ownership 100% 51% (49% DHL) 100% 100% � We manage diverse, complex and � We manage a world-class fleet to service time-definite global networks multiple market segments � We deliver superior performance and � We are strategically positioned in a value-added solutions across our strengthening market and focused on business segments new opportunities to continue to deliver future growth 2 Atlas Air

Our Current Fleet – July 2017 Total Fleet: 95 Operating Fleet: 86 42 Boeing 747s 35 Boeing 767/757s � 10 747-8Fs � 28 767-200/300Fs* � 24 747-400Fs � 6 767-200/300 passenger � 4 747-400 passenger � 1 757-200 freighter Titan � 4 Boeing Large Cargo Freighters (LCFs) 7 Boeing 737s � 5 737-400Fs � 1 737-300F Titan � 1 737-800 passenger Titan 11 Boeing 777s � 5 CMI 777Fs � 6 Titan 777Fs …Heading to More than 100 aircraft … with Over 40 B767s 3 Atlas Air * Includes to-be-converted aircraft

Global Operating Network LIM EZE 210,444 Total Block Hours Operated in 2016* Astral Boeing BST 39,882 Flights* 425 Airports in 119 Countries DHL Etihad Qantas 730 Charters Completed 80+ Unique Customers Panalpina SonAir Scheduled Service 4 Atlas Air * Totals including Southern Air, acquired April 7, 2016

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 5 Atlas Air

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 6 Atlas Air

Anchorage Customers 7 Atlas Air

Anchorage Partners 8 Atlas Air

Year-to-Year - Arrivals and Departures PANC/ANC Operations # of flights (thousands) 2012 2013 2014 2015 2016 DEP 2440 2493 2757 3052 2957 ARR 2439 2491 2757 3052 2962 TOTAL FLIGHTS 4579 4984 5514 6104 5919 9 Atlas Air

Year-to-Year – Fuel Uplift PANC/ANC Fuel Uplift (USG) 70,000,000 60,000,000 U.S. Gallons (Million(s)) 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 2013 2014 2015 2016 2013 2014 2015 2016 FUEL UPLIFT (USG) 52,142.17 57,783,815 63,637,654 60,032,508 10 Atlas Air

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 800,393 817,122 904,378 1,001,147 971,625 Fee Totals $5,898,113 $6,018,330 $6,660,994 $7,373,723 $7,156,281 11 Atlas Air

Megatrends Driving Airfreight Growth Age of Urbanization Accelerated Technology � Increases in urban consumption � New mobile devices and by the growing middle class will electronics drive airfreight drive increasing trade demand � Reduced product renewal cycles for different product types requires a faster supply chain, with significant use of airfreight Greater Global Connections Changing Demographics � Airfreight network strength and � Demographic trends suggest flexibility has significant value in an significant growth in Asia, Africa increasingly interconnected global and South America marketplace � Trends will require an efficient Air network to serve effectively Source: McKinsey Global Institute. 12 Atlas Air

Freighters are Critical to Compete in Air Cargo Markets – Especially in Time-Definite Networks Airlines operating freighters generate 90% of industry revenues $8.5B $8.5B Total $83.4B $33.6B $32.8B 13 Atlas Air Sources: Flight Global, U.S. DOT F41, airline reports, and Boeing estimates (2015 data)

Global Airfreight Industry Performance Trends Global Airfreight Market Global Express Market � International freight tonne kilometers (FTKs) flown up 3.8% in 2016 � The International Express market is showing robust growth � Very strong FTK growth anticipated in 2017 � 5.8% CAGR since 2011 vs. nominal CAGR for International FTK’s � PMI Index at 55 for 2017 and semi-conductor sales +18% for 2017 � The Express segment benefiting from the e-Commerce growth International Express Market – DHL, FedEx and UPS Total Global Airfreight Tonnage Growing from Record Levels Change in Demand (Base year 2011 - 100%) 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) Global e-Commerce Market Supply vs. Demand Global e-Commerce Estimates ($ Billion) FTK and AFTK Growth Overall e-Commerce market penetration is still low 14 Atlas Air Sources: IATA, ICAO, Euromonitor, Forrester, eMarketer, BofA Merrill Lynch Global Research estimates, Company Public Reports

e-Commerce market in Asia will grow e-Commerce Penetration � e-Commerce only accounts for ~10% of global retail (as percentage of global retail sales) 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 15 Atlas Air Source: Forrester, Statista, eMarketer

Thank You 16 Atlas Air