Air T, Inc. Reports 21% Revenue Decline in Q2 Fiscal 2026

Air T, Inc. reported a decline in financial performance for the second quarter of fiscal 2026, with total operating revenues of $64.2 million, down 21% from $81.2 million in the same period last year. The decrease was primarily driven by significant declines in the commercial aircraft, engines, and parts segment, which saw revenues drop by 37% to $20.9 million, and the ground support equipment segment, which fell by 33% to $9.6 million. In contrast, the digital solutions segment experienced a 20% increase in revenue, reaching $2.2 million, attributed to higher software subscription sales.

Operating expenses also decreased, totaling $65.7 million for the quarter, a reduction of 15% compared to $77.6 million in the prior year. The overnight air cargo segment's operating expenses decreased by 5% to $24.9 million, while the commercial aircraft segment saw a more substantial reduction of 36% to $14.4 million. General and administrative expenses rose by 27% to $18.1 million, largely due to acquisition-related costs and increased payroll expenses. The company reported operating income of $5.5 million, compared to $3.6 million in the previous year.

In terms of strategic developments, Air T completed the acquisition of Royal Aircraft Services, LLC for $1.2 million in May 2025, which is expected to enhance its overnight air cargo operations. The company also reported a gain of $7.0 million from the sale of aircraft during the quarter, contributing positively to its financial results. As of September 30, 2025, Air T's cash and cash equivalents increased to $17.5 million, up from $5.9 million at the end of the previous fiscal year, reflecting improved liquidity.

Operationally, the company reported a total of 2,703,000 shares outstanding, with basic earnings per share of $1.61 for the quarter, compared to $0.91 in the same quarter last year. The company’s working capital increased to $49.4 million, driven by a rise in inventory and cash reserves. The total employee headcount remained stable, with no significant changes reported.

Looking ahead, Air T anticipates continued challenges in the commercial aircraft segment due to reduced component sales and inventory purchases. However, the company remains optimistic about growth in its digital solutions and ground support equipment segments, supported by increased demand for maintenance services. The management is focused on leveraging its recent acquisitions and improving operational efficiencies to enhance profitability in the upcoming quarters.