January 17, 2014 / 4:20 PM / 5 years ago

Atlas Air loses contract with British Airways, shares dive

(Reuters) - Atlas Air Worldwide Holdings Inc (AAWW.O), a provider of outsourced aircraft and aviation operating services, said British Airways Plc terminated a lease agreement ahead of schedule.

Atlas Air shares fell as much as 19 percent in early trading on Friday.

The company said the lease for three 747-8 freighter aircraft operated by Atlas’ UK subsidiary Global Supply Systems Ltd (GSS) was terminated, following British Airways’ decision to exit dedicated cargo-freighter service.

GSS was operating the three aircraft for British Airways and the lease agreement was originally scheduled to end in April 2014.

Atlas Air said it would receive early termination fees from British Airways. GSS will redeliver the aircraft to Atlas Air.

The company’s shares were down 15 percent at $36.94 on the Nasdaq on Friday morning.

Reporting by Rohit T. K. in Bangalore; Editing by Joyjeet Das

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