Atlas Air Enters Contract With TNT Airways

Atlas Air Worldwide Holdings, Inc. (NASDAQ: AAWW) is a Buy stock, according to Dahlman Rose, and here are the reasons to own Atlas shares:

"Atlas has a transparent revenue stream. We currently estimate current rates for the Boeing 747-400F are in the $6,000-$6,500 per block hour range. Each B747-400F in ACMI service generates about $29 million in annual revenue and contributes $6 million to the bottom line. We estimate the B747-8F will generate between $34 and $39 million in annual revenue. We anticipate record 2010 earnings continuing into 2011 with the addition of the B747-8Fs."

Atlas Air has also entered into a contract with Belgium-based TNT Airways, for which it will provide "747-400 Freighter service for TNT's international express air network on an ACMI basis. TNT Airways will be added to Atlas' long list of blue chip customers including Boeing, Sonair, British Airways, DHL and the US Military," Dahlman Rose reports.

Dahlman Rose maintains its $60 price target for Atlas Air Worldwide Holdings, which closed yesterday at $49.49.