Monday, May 07, 2007 --   Aggressive Asset Management, Continuous Improvement Initiatives

Boost Performance, Enhance Margins

AAWW to Host Conference Call, Webcast at 2 P.M. Eastern Time

Purchase, N.Y., May 7, 2007 - Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW), a leading provider of global air cargo services, today announced record first-quarter earnings since emerging from reorganization in mid 2004, reflecting improved aircraft utilization through proactive asset management and the positive impact of ongoing Continuous Improvement initiatives. Earnings for the quarter also benefited from increased AMC charter demand and reduced interest expense.

For the quarter ended March 31, 2007, AAWW earned $6.2 million, or $0.29 per diluted share, on revenues of $353.6 million, the highest first-quarter revenues in the Company's history. Operating income of $17.5 million and pretax income of $10.1 million included a nonrecurring gain of $1.0 million on the disposal of aircraft.

“We had an excellent first quarter,” said William J. Flynn, President and Chief Executive Officer of AAWW. “Our active asset management and Continuous Improvement initiatives are yielding measurable gains in our margins and operating efficiency and enhancing our earnings.

“With this momentum, we maximized returns on our assets and achieved robust results during a traditionally slow period of the year in air cargo demand, as well as a quarter with some sluggishness in key trade lanes.”

Operating income as a percentage of total revenues increased to 4.9% in the first quarter of 2007 from 2.1% in the first quarter of 2006, while EBITDAR, as adjusted, improved to 18.3% of sales from 17.6% and EBITDA, as adjusted, increased to 7.4% of sales versus 6.2%.

In addition, average utilization of operating aircraft on a block-hours-per-day basis increased approximately 19% compared with the year-ago quarter, while EBITDAR and EBITDA per aircraft measured on a total fleet basis grew by 23% and 40%, respectively.

Mr. Flynn added, “We also responded quickly and reliably during the first quarter to an increase in expansion business awarded by the U.S. military, which we expect will continue throughout the first half of 2007. At the same time, we allocated capacity among our business segments and geographic markets in response to market conditions to service an increase in demand coming from the South American and transatlantic trade lanes, which offset some moderation in Asian export markets. In addition, our repayment of high-cost debt during 2006 reduced interest expense during the quarter and improved our strategic and operating flexibility through the elimination of restrictive loan covenants.”

Continuous Improvement initiatives contributed in excess of $12 million of cost savings to AAWW's first-quarter results. Primary sources of savings were in maintenance, both through improved internal processes and lower pricing through competitive bids on outsourced activity; fuel, where efficiency initiatives have reduced consumption; improved parts management, which is helping to minimize loan/borrow costs; and strategic procurement processes relating to all other outside services.

Conference Call

Management will host a conference call to discuss AAWW's first-quarter 2007 financial and operating results at 2:00 P.M. Eastern Time on Monday, May 7, 2007.

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 May 14 by dialing (800) 405-2236 (domestic) and (303) 590-3000 (international) and using Pass Code 11089327#.

1Q07 Performance Factors Versus 1Q06

Average utilization of operating aircraft during the first quarter increased 18.9% versus the first quarter of 2006, rising to 10.7 block