Air T, Inc. Reports 22.2% Revenue Growth in Q3, Improved Net Income

Air T, Inc. reported a significant increase in financial performance for the third quarter and nine months ended December 31, 2024, as detailed in its latest 10-Q filing. The company achieved consolidated revenues of $77.9 million for the quarter, a 22.2% increase from $63.8 million in the same period last year. For the nine-month period, revenues rose to $225.5 million, up 5.3% from $214.2 million. The net income attributable to Air T, Inc. stockholders for the quarter was a loss of $1.3 million, an improvement from a loss of $3.0 million in the prior year, while the nine-month net income was $888,000, compared to a loss of $5.1 million in the same period last year.

The company experienced notable growth across its business segments. The overnight air cargo segment generated $30.6 million in revenue, up 5.4% year-over-year, driven by an expanded fleet of 105 aircraft compared to 85 a year earlier. Ground equipment sales surged by 40.3% to $11.8 million, attributed to increased sales of deicing trucks and heightened demand for maintenance services. The commercial jet engines and parts segment also saw a 35.4% revenue increase to $32.7 million, largely due to higher component sales as airlines focused on maintaining existing fleets amid delays in new aircraft deliveries.

Operationally, Air T's total assets increased to $187.6 million as of December 31, 2024, up from $177.2 million at the end of the previous fiscal year. The company reported a decrease in inventory levels, which fell from $60.7 million to $38.5 million, reflecting improved inventory management. The company’s employee headcount remained stable, with no significant changes reported. The filing also noted a strategic acquisition, with Contrail Aviation Support, LLC, contributing to the company’s growth through enhanced service offerings and inventory management.

Looking ahead, Air T expressed optimism about its future performance, citing a strong order backlog in the ground equipment sales segment and ongoing demand for its air cargo services. The company is also focused on managing its cost structure and leveraging its operational efficiencies to navigate potential market challenges. The management anticipates that the strategic decisions made in the current fiscal year will position the company favorably for continued growth and profitability in the upcoming quarters.