Air T, Inc. Reports $291.9 Million Revenue for Fiscal Year Ending March 31, 2025

Air T, Inc. reported a consolidated revenue of $291.9 million for the fiscal year ending March 31, 2025, marking a 2% increase from $286.8 million in the previous fiscal year. The growth was primarily driven by a 7% increase in the Overnight Air Cargo segment, which generated $124.0 million in revenue, attributed to higher labor revenues and increased administrative fees from FedEx. The Ground Support Equipment segment also saw a modest revenue increase of 5% to $38.9 million, while the Commercial Aircraft, Engines and Parts segment experienced a decline of 6% to $118.2 million due to a lower supply of assets available for resale. The Digital Solutions segment reported a significant revenue increase of 26%, reaching $7.3 million, driven by higher software subscriptions.

In terms of profitability, Air T's consolidated operating income rose to $1.9 million from $1.3 million in the prior year. The Overnight Air Cargo segment's operating income decreased slightly, primarily due to increased loss provisioning and additional taxes. Conversely, the Commercial Aircraft, Engines and Parts segment saw a notable increase in operating income, attributed to higher sales of component packages. The overall Adjusted EBITDA for the company increased to $7.4 million, up from $6.2 million in the previous year, reflecting improved operational performance across several segments.

Strategically, Air T made significant moves during the fiscal year, including the acquisition of Worldwide Aircraft Services, Inc. (WASI) in January 2023, which is expected to enhance its capabilities in aircraft repair and maintenance. The company also restructured its reporting segments to better align with its operational focus, renaming the Ground Equipment Sales segment to Ground Support Equipment and the Commercial Jet Engines and Parts segment to Commercial Aircraft, Engines and Parts. Additionally, Air T has been actively managing its debt, with total debt reported at approximately $110.7 million as of March 31, 2025, reflecting a slight decrease from the previous year.

Operationally, Air T's workforce consisted of 646 employees as of March 31, 2025, with no employees represented by labor unions. The company continues to focus on enhancing its employee relations and maintaining a diverse workforce. The Overnight Air Cargo segment remains heavily reliant on FedEx, which accounted for approximately 39% of total consolidated revenue. The company is aware of the risks associated with this dependency, particularly the potential impact of any changes in FedEx's operational needs.

Looking ahead, Air T anticipates continued challenges from inflation and supply chain disruptions, which may affect its operational costs and market conditions. However, the company remains optimistic about demand in its commercial aircraft and parts segment and is committed to strategic growth through acquisitions and operational improvements. The management believes that the current cash reserves and financing arrangements will be sufficient to meet its obligations in the near term, despite the uncertainties in the economic landscape.