Air T Revenue Jumps 63% to $115.5 Million Driven by Aviation Expansion

2026-08-14 companies

Minneapolis, Saturday, 15 August 2026.
Air T reported a 63% revenue surge to $115.5 million for fiscal Q1 2027, driven by strategic acquisitions, though initial integration costs led to a $12.8 million operating loss.

Revenue Growth and Operating Performance

Air T, Inc. (NASDAQ: AIRT) announced financial results for the first quarter of fiscal 2027 on August 14, 2026, revealing consolidated revenues of $115.5 million [1][3]. This figure represents a significant increase compared to the $70.9 million reported in the same quarter of the prior fiscal year [3][4]. The growth rate calculates to approximately 62.906 percent year-over-year [3]. The reporting period covered the three months ended June 30, 2026 [1][2]. Despite the revenue surge, the company recorded an operating loss of $12.8 million for the quarter [2][5]. This contrasts with an operating income of $0.8 million in the prior-year quarter [3][5]. Management attributed the loss primarily to transaction and integration costs related to recent acquisitions and non-cash depreciation from the Rex aircraft fleet [1][4]. Adjusted EBITDA for the period decreased 45% to $0.8 million from $1.5 million year-over-year [3][4].

Strategic Acquisitions and Segment Performance

A key driver of the company’s expanded portfolio was the acquisition of Arena Aviation Capital by subsidiary Crestone Air Partners, completed on June 10, 2026 [4][5]. The transaction value was $33.9 million, comprising $21.7 million in cash and $12.2 million in contingent consideration [1][5]. This deal established a new Aviation Leasing and Asset Management segment, which manages approximately $3.0 billion in assets [1][4]. Air T retains an 83.9% ownership stake in Crestone following the acquisition [3][4]. The Regional Airline segment, incorporating Rex, generated $55.9 million in revenue during the quarter [5][6]. However, this segment also reported an operating loss of $7.7 million, impacted by $8.8 million in non-cash depreciation and amortization charges [4][6]. Management noted that Rex currently operates 32 active aircraft, with 30 scheduled on regular flight lines [1][4]. The company identified active aircraft growth and network restoration as top priorities for the subsidiary [4][5].

Financial Position and Future Outlook

As of the end of the quarter, Air T held $21.7 million in cash and restricted cash [3][4]. Additionally, the company had $42.4 million in available funds under its lines of credit [1][5]. Total consolidated debt was reported at $231.6 million net of cash and cash equivalents [5]. The company continues to monitor liquidity risks and potential volatility from integration efforts [5][6]. Shareholders are scheduled to attend the Annual Meeting on August 25, 2026, at the executive office in Minneapolis, Minnesota [4][5]. Proxy materials for the meeting were distributed to shareholders on or about July 10, 2026 [2][4]. Management remains confident in the long-term prospects of both Crestone and Rex despite current challenges [1][5]. The company intends to address investor questions via written response on a quarterly basis and live at the meeting [2][5].

Sources

Revenue Growth Aviation Logistics