Air T, Inc. Reports 63% Revenue Growth but Faces $15.7 Million Net Loss

Air T, Inc. reported significant financial changes in its latest quarterly filing for the period ending June 30, 2026. The company achieved total operating revenues of $115.5 million, a substantial increase of 63% compared to $70.9 million in the same quarter of the previous year. This growth was primarily driven by the inclusion of revenues from its newly acquired regional airline segment, which contributed $55.9 million. However, the company also faced a net loss of $15.7 million, compared to a loss of $0.7 million in the prior year, reflecting increased operating expenses and interest costs.

The financial performance was impacted by several factors, including a notable rise in operating expenses, which surged to $128.3 million from $70.0 million year-over-year. This increase was largely attributed to the operational costs associated with the regional airline segment, as well as higher general and administrative expenses, which rose to $29.6 million from $15.0 million. Additionally, interest expenses more than doubled to $5.7 million, further contributing to the overall net loss.

Strategically, Air T completed the acquisition of Arena Aviation Partners B.V. on June 10, 2026, for $33.9 million, aimed at expanding its aviation leasing and asset management capabilities. This acquisition is expected to enhance the company's revenue streams in the aviation sector. The company also reported a distribution of servicing agreement rights from Crestone Asset Management, valued at $15.5 million, which is anticipated to bolster its asset management operations.

Operationally, Air T's customer base and engagement metrics showed mixed results. The regional airline segment, which began operations in December 2025, reported a full quarter of activity, while the overnight air cargo segment experienced a slight decline in revenue. The ground support equipment segment saw a significant drop in revenue, primarily due to the timing of military orders and a lack of large one-time orders that had previously boosted sales. The company’s total employee headcount remained stable, reflecting its ongoing operational adjustments.

Looking ahead, Air T's management expressed cautious optimism regarding future performance, emphasizing the potential for revenue growth from the newly acquired segments and ongoing operational improvements. However, they acknowledged the challenges posed by rising operational costs and market conditions, which could impact profitability in the near term. The company continues to focus on strategic investments and operational efficiencies to enhance its financial stability and growth prospects.