Sky Harbour Group Reports 133% Revenue Growth to $5.6 Million Despite Net Loss

Sky Harbour Group Corporation reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated total revenue of $5.6 million, a 133% increase from $2.4 million in the same period last year. This growth was primarily driven by a substantial rise in rental revenue, which reached $4.5 million, up from $2.1 million, and fuel revenue, which surged to $1.1 million from $0.3 million. Despite this revenue growth, the company incurred a net loss of $9.1 million, an improvement from the $21.2 million loss reported in the prior year, reflecting a decrease in expenses related to warrant liabilities.

In terms of operational metrics, Sky Harbour's total expenses rose to $12.4 million from $7.6 million year-over-year, largely due to increased campus operating expenses, ground lease expenses, and employee compensation. The company reported a significant increase in ground lease expenses, which rose to $2.9 million from $1.2 million, reflecting new leases signed at various hangar campuses. The total employee compensation and benefits also increased to $4.2 million, driven by headcount growth in anticipation of new operations.

Strategically, Sky Harbour has been expanding its footprint in the aviation infrastructure sector. The company has been actively developing new hangar campuses and has recently entered into several ground lease agreements, including leases at Hillsboro Airport and Stewart International Airport. As of March 31, 2025, the company had 33,793,886 shares of Class A common stock and 42,046,356 shares of Class B common stock outstanding, indicating a stable equity structure as it continues to grow.

Looking ahead, Sky Harbour's management remains optimistic about future growth, citing the increasing demand for hangar space driven by the expanding U.S. business aviation fleet. The company plans to continue investing in its development projects, with a focus on securing additional ground leases and enhancing its operational capabilities. However, management also acknowledged potential challenges, including rising construction costs and interest rates, which could impact future profitability and cash flow. The company is committed to mitigating these risks through strategic planning and operational efficiencies.