Sky Harbour Group Reports 95% Revenue Growth to $14.8 Million Despite Increased Net Loss

Sky Harbour Group Corporation reported significant financial developments in its recent 10-K filing for the fiscal year ending December 31, 2024. The company generated total revenue of approximately $14.8 million, a substantial increase of 95% from $7.6 million in the previous year. This growth was primarily driven by a 78% rise in rental revenue, which reached $12.7 million, attributed to the commencement of operations at the San José International Airport (SJC) and increased occupancy at other hangar campuses. Fuel revenue also saw a notable increase, rising to $2.1 million from $0.4 million, reflecting higher fuel sales linked to increased hangar occupancy.

Despite the revenue growth, Sky Harbour reported a net loss of $53.7 million for 2024, compared to a loss of $25.4 million in 2023. The increase in net loss was largely due to a significant unrealized loss of $34.5 million on warrants, which contrasted with a loss of $8.6 million in the prior year. Operating expenses also rose, totaling $35.2 million, up from $24.6 million in 2023, driven by higher ground lease expenses, employee compensation, and marketing costs associated with the company's expansion efforts.

Strategically, Sky Harbour made notable acquisitions and expansions during the year. In December 2024, the company completed the acquisition of CloudNine at Camarillo LP and Sky 805 LLC for approximately $32 million, enhancing its operational footprint in California. Additionally, the company entered into several new ground leases, including a 30-year lease at Trenton-Mercer Airport, which is expected to bolster its portfolio of hangar campuses. As of December 31, 2024, Sky Harbour had 33,456,227 shares of Class A common stock and 42,046,356 shares of Class B common stock outstanding.

Operationally, the company reported a total of 84 employees as of the end of 2024, with plans to expand its workforce to support its growth initiatives. The company is focused on increasing its market share in the aviation infrastructure sector, which is experiencing rising demand due to the growing size of the business aviation fleet in the U.S. Sky Harbour anticipates that its scalable business model, which includes a standardized hangar design, will allow it to capitalize on existing supply constraints in the market.

Looking ahead, Sky Harbour's management expressed optimism about future growth, citing a robust pipeline of development projects and the potential for increased revenue from new tenants. However, the company also acknowledged the challenges posed by rising construction costs and interest rates, which could impact its financial performance. The company plans to continue leveraging its access to capital markets to fund its expansion and meet its operational needs.