May 17, 2018

Atlas Air, Inc. (Atlas) and Southern Air, Inc. (Southern) have made clear to the Union that we want to reach a new JCBA as soon as possible. We are eager to enter into our next agreement which appropriately rewards our pilots for their commitment and creates new opportunities for shared growth.

Our pilots should have had a new contract by now. There has been a fundamental disagreement with the Union about its contractual obligations to reach a JCBA pursuant to the merger provisions of both the Atlas and Southern CBAs. This has resulted in extensive efforts by the Company, including necessary legal proceedings, to move this process forward under the terms of the CBAs.

The Company has continued, nonetheless, to bargain in good faith with the Union pending resolution of these contractual disputes. Indeed, had the Union honored its contractual obligations, the pilots would most certainly have a new JCBA with improved pay and work rules by now.