AIR T posts $11M operating loss in Q2 FY27
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
AIR T, Inc. updated its investor presentation for FY27’s second quarter. Consolidated revenue for the three months ended September 30, 2026, was $146.9 million, versus $64.2 million a year earlier. Adjusted EBITDA was $4.4 million, compared with $7.9 million, and GAAP operating results were a loss of $11 million versus income of $5 million.
For the trailing 12 months ended September 30, revenue was $454.5 million versus $279.2 million, while adjusted EBITDA was $6.0 million versus $10.8 million. Quarterly Ground Support Equipment revenue was $18.9 million versus $9.6 million, primarily reflecting more deicing trucks sold to a large U.S. Military customer. Commercial Aircraft, Engines and Parts adjusted EBITDA was $1.5 million versus $6.9 million; AIR T cited lower Contrail revenue following a $7.0 million one-time aircraft-sale gain in the prior-year quarter, partly offset by improvement at AirCo and LGSS.
The Regional Airline segment reported $56.8 million in revenue and a $0.9 million adjusted EBITDA loss. AIR T said fuel spending was the primary loss driver; unscheduled engine removals and lower engine throughput from third-party maintenance providers also reduced aircraft available for service. Shareholders can submit questions through Slido; AIR T said answers will be provided live and in writing at the annual meeting and in writing quarterly.
1 point · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointConsolidated quarterly revenue rose 129% to $146.9 million.
Negative
- Moderate pointQuarterly adjusted EBITDA fell 45% to $4.4 million.
- Moderate pointGAAP operating results were a loss of $11 million in Q2 FY27.
Filing Explained
As of September 30, 2026, the $3,353 million figure is aircraft assets under management for Air T and investor partners.
This 8-K furnishes an updated investor presentation; its
The schedule distinguishes Air T direct and guaranteed debt from debt labeled not Air T guaranteed, so the gross-debt total combines both categories.
The presentation reports
Quarterly figures show cash of
Sources and calculations
- AIR T, Inc. Form 8-K and updated investor presentation (2026-11-13)
- AIR T, Inc. quarterly fundamentals (2026-09-30)
- Available liquidity against the last reported quarterly operating outflow, in days at that rate ($22,141,000 + $1,165,000) / ($10,377,000 / 92) = 206.6 days
8-K Event Classification
3 items: 7.01, 8.01, 9.01
3 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Consolidated quarterly revenue: $146.9 million
Consolidated quarterly adjusted EBITDA: $4.4 million
GAAP operating income (loss): ($11 million)
+5 more
8 metrics
Consolidated quarterly revenue
$146.9 million
Three months ended September 30, 2026; $64.2 million in 2Q26
Consolidated quarterly adjusted EBITDA
$4.4 million
Three months ended September 30, 2026; $7.9 million in 2Q26
GAAP operating income (loss)
($11 million)
2Q27; GAAP operating income was $5 million in 2Q26
Trailing 12-month revenue
$454.5 million
Ended September 30, 2026; $279.2 million in 2Q26
Trailing 12-month adjusted EBITDA
$6.0 million
Ended September 30, 2026; $10.8 million in 2Q26
Ground Support Equipment quarterly revenue
$18.9 million
2Q27; $9.6 million in 2Q26
Regional Airline quarterly adjusted EBITDA
($0.9 million)
Three-month period ended September 30, 2026
Total debt, net of cash and cash equivalents
$252.5 million
2Q27 debt schedule
Key Terms
Adjusted EBITDA, intersegment eliminations, Aircraft Assets Under Management, non-recourse leverage, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $4.4 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
intersegment eliminations financial
"Net of intersegment eliminations"
Intersegment eliminations are accounting adjustments made when a company removes sales, costs, or balances that occurred between its own business units before reporting consolidated financials. Like crossing out double-counted items on a combined shopping list, these eliminations prevent internal transfers from inflating total revenue or profit, so investors see the company’s results from outside customers rather than transactions that just moved money between divisions.
Aircraft Assets Under Management financial
"Aircraft Assets Under Management (Net of Dispositions)"
non-recourse leverage financial
"utilizing non-recourse leverage"
earnout remeasurement financial
"Earnout Remeasurement"
An earnout remeasurement is the post-acquisition adjustment of the recorded value of contingent consideration (an “earnout”) that a buyer may owe to a seller if future performance targets are met. It reflects updated estimates or changes in fair value after the acquisition and, under common accounting rules, is remeasured only when the contingent payment is classified as a liability or asset (not when classified as equity), with subsequent gains or losses typically recognized in the acquirer’s profit or loss.
landholder duty tax financial
"Australian One-Time Landholder Duty Tax"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was AIRT’s revenue in Q2 FY27?
AIRT reported $146.9 million in consolidated revenue for the three months ended September 30, 2026, compared with $64.2 million in the year-earlier quarter; the presentation lists the increase as 129%.
What was AIRT’s adjusted EBITDA in Q2 FY27?
AIRT reported $4.4 million in consolidated adjusted EBITDA for the quarter, compared with $7.9 million a year earlier. GAAP operating results were a loss of $11 million, versus income of $5 million in the year-earlier quarter.
Why did AIRT’s Commercial Aircraft, Engines and Parts adjusted EBITDA decline?
The segment reported $1.5 million of adjusted EBITDA, compared with $6.9 million a year earlier. AIR T attributed the decrease to lower Contrail revenue following a $7.0 million one-time aircraft-sale gain in the prior-year quarter, partly offset by improvement at AirCo and LGSS.
AI-generated analysis. How Rhea-AI works. Not financial advice.
______________________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________________________________________________________________
FORM 8-K
______________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 13, 2026
______________________________________________________________________________
(Exact Name of Registrant as Specified in Charter)
______________________________________________________________________________
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices, and Zip Code)
________________(
Registrant’s Telephone Number, Including Area Code
Not applicable___
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). | |||||
Emerging growth company | |||||
| ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||
Item 7.01 Regulation FD Disclosure
Updated Investor Presentation. The Company updated its investor presentation to potential investor groups. A copy of the updated PowerPoint Presentation to be used by the Company for such presentations is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information contained in Item 7.01 to this Current Report on Form 8-K (including Exhibits 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise be subject to the liabilities of that section. The information in this Item 7.01 (including Exhibits 99.1) shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, except as otherwise expressly stated in such filing.
Item 8.01 Other Events
For questions related to this release or other Air T matters, please use the Company’s interactive Q&A capability, through Slido.com, accessible from our website, to submit any questions. Questions submitted through Slido will be answered “live” and in writing at the Company’s Annual Meeting, and via a written response on a quarterly basis. Note that legal and pragmatic requirements restrict us from answering every question posted, yet we intend to address all reasonable and relevant questions with a written answer.
Item 9.01 Financial Statements and Exhibits
| 99.1 | PowerPoint Presentation as of September 30, 2026 | ||||
| 104 | Inline XBRL for the cover page of this Current Report on Form 8-K | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 13, 2026
AIR T, INC.
By: /s/ Tracy Kennedy
Tracy Kennedy, Chief Financial Officer
NASDAQ: AIRT FY27 Q2 Update A PORTFOLIO OF POWERFUL COMPANIES As of September 30, 2026
Certain statements in this Report, including those contained in “Overview,” are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company’s financial condition, results of operations, plans, objectives, future performance and business. Forward-looking statements include those preceded by, followed by or that include the words “believes”, “pending”, “future”, “expects,” “anticipates,” “estimates,” “depends” or similar expressions. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements, because of, among other things, potential risks and uncertainties, such as: An inability to finance our operations through bank or other financing or through the sale or issuance of debt or equity securities; Economic and industry conditions in the Company’s markets; The risk that contracts with FedEx Corporation (“FedEx”) could be terminated or adversely modified; The risk that the number of aircraft operated for FedEx is reduced; The risk that GGS customers will defer or reduce significant orders for deicing equipment; The impact of any terrorist activities or armed conflict on U.S. soil or abroad; Changes in U.S. and foreign trade regulations and tariffs; The Company’s ability to manage its cost structure for operating expenses, or unanticipated capital requirements, and match them to shifting customer service requirements and production volume levels; The Company's ability to meet debt service covenants and to refinance existing debt obligations; The risk of injury or other damage arising from accidents involving the Company’s overnight air cargo operations, equipment or parts sold and/or services provided; Market acceptance of the Company’s commercial and military equipment and services; Competition from other providers of similar equipment and services; Changes in government regulation and technology; The risk that we may not successfully integrate Rex (including financial reporting, systems, and personnel), which could adversely affect our results and reporting; The risk that Rex’s revenues and operating costs may be volatile or unpredictable and that we may be unable to offset cost increases or revenue decreases through pricing, surcharges, cost reductions, or other measures, which could adversely affect our results; The risk that Rex may be unable to return aircraft to service on anticipated timelines, to retain regulated route contracts and protected airport slots, or to maintain compliance with the Rex Regional Commitments under the Commonwealth Facilities; The risk that the preliminary purchase price allocation for the Rex acquisition, including the determination and measurement of any bargain purchase gain and related tax treatment, may be revised as valuations and other inputs are finalized during the measurement period, which revisions could materially change our reported results of operations and financial position from period to period; The risk that Rex’s operations are subject to extensive regulation and oversight and that compliance failures or adverse regulatory actions could materially harm our business and results; The risk that the Rex transaction structure, including the Australian DOCA/administration process, could result in unexpected liabilities, claims, or delays that could materially harm our results and liquidity; Changes in the value of marketable securities held as investments; Mild winter weather conditions reducing the demand for deicing equipment; Market acceptance and operational success of the Company’s aircraft asset management business and related aircraft capital joint venture; and despite our current indebtedness levels, we and our subsidiaries may still be able to incur substantially more debt, which could further exacerbate the risks associated with our substantial leverage. We also wish to caution investors that other factors might in the future prove to be important in affecting our results of operations. New factors emerge from time to time. It is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2 SAFE HARBOR
1. About AIR T, INC. 2. Our Growth Strategies 3. Quarterly News and Financial Updates 4. Appendix - Risk Factors 3 CONTENTS
4 ABOUT AIR T, INC.
We are an industrious American company established 40+ years and growing. 5 ■ Our businesses have a history of growth and cash flow generation. ■ We seek to identify and empower individuals and teams who will operate businesses well, increasing value over time. ■ We work to activate growth and overcome challenges, ultimately building businesses that flourish over the long term. ■ AIR T’s management team has a track record of successfully allocating capital.
6 1 See Slide 36 for case study demonstrating the Air T Flywheel in Action Build a brand and industrious network FLYWHEEL Generate extremely attractive returns on capital Secure and empower dynamic management Match with capital partners Identify good ideas
“Investor-Operator Partnership” is designed to drive short and long-term value creation. 7 “We want our businesses to be managed by dynamic individuals within high-performance teams. We are set up to make space for dynamos and support their enterprises. The holding company team seeks to focus resources, activate growth and deliver long-term value for everyone associated with AIR T, INC.” - Nick Swenson
Our Twelve Year Journey 8 1 Defined as A/R + Inventory – A/P 2 See reconciliation from reported Revenue, Operating Income, and Adjusted EBITDA to LTM figures on pages 35, 46 and 47 12 Months Ended Metrics 3/31/14 9/30/26 Businesses 3 21 Revenue 100.8M$ $ 454.5M Adj. EBITDA 3.4M$ $ 6.0M Total Debt -$ 272.4M$ Holdco Recourse Debt -$ 89.2M$ Total Assets 37.2M$ 483.0M$ Tangible Net Working Capital1 16.1M$ 94.4M$ Book Value 27.4M$ 47.9M$ Market Capitalization 20.2M$ 75.7M$ Enterprise Value 20.2M$ 325.9M$
$146.9M 9 2Q27 Revenue (Net of intersegment eliminations) $4.4M 2Q27 Adj. EBITDA (Net of corporate overhead & intersegment eliminations) 6 CORE SEGMENTS 21 COMPANIES 1,600+ EMPLOYEES COMMERCIAL AIRCRAFT ENGINES AND PARTS $27.0M 2Q27 Revenue $1.5M 2Q27 Adj. EBITDA GROUND SUPPORT EQUIPMENT $18.9M 2Q27 Revenue $2.7M 2Q27 Adj. EBITDA REGIONAL AIRLINE $56.8M 2Q27 Revenue ($0.9M) 2Q27 Adj. EBITDA AVIATION LEASING AND ASSET MANAGEMENT $7.8M 2Q27 Revenue $1.3M 2Q27 Adj. EBITDA DIGITAL SOLUTIONS $2.5M 2Q27 Revenue $0.1M 2Q27 Adj. EBITDA OVERNIGHT AIR CARGO $33.2M 2Q27 Revenue $2.6M 2Q27 Adj. EBITDA
$454.5M 10 LTM 2Q27 Revenue (Net of intersegment eliminations) $6.0M LTM 2Q27 Adj. EBITDA (Net of corporate overhead & intersegment eliminations) 6 CORE SEGMENTS 21 COMPANIES 1,600+ EMPLOYEES COMMERCIAL AIRCRAFT ENGINES AND PARTS $95.4M LTM 2Q27 Revenue $0.8M LTM 2Q27 Adj. EBITDA GROUND SUPPORT EQUIPMENT $45.0M LTM 2Q27 Revenue $3.7M LTM 2Q27 Adj. EBITDA REGIONAL AIRLINE $168.0M LTM 2Q27 Revenue $1.0M LTM 2Q27 Adj. EBITDA AVIATION LEASING AND ASSET MANAGEMENT $9.1M LTM 2Q27 Revenue $1.0M LTM 2Q27 Adj. EBITDA DIGITAL SOLUTIONS $10.0M LTM 2Q27 Revenue $0.2M LTM 2Q27 Adj. EBITDA OVERNIGHT AIR CARGO $131.9M LTM 2Q27 Revenue $8.2M LTM 2Q27 Adj. EBITDA 1 See reconciliation from reported Revenue, Operating Income, and Adjusted EBITDA to LTM figures on pages 35, 46, and 47
AIR T, INC. FY Financial Highlights (For the Three-Month Period Ended 9/30) 11 2Q RESULTS 1 Adjusted EBITDA includes addition of share-based compensation and severance expense adjustments to enhance comparability with current year’s presentation. 2 See Adjusted EBITDA reconciliation on slide 34 2Q23 2Q24 2Q251 2Q26 2Q27 Revenue 60.7M$ 79.0M$ 81.2M$ 64.2M$ 146.9M$ Adjusted EBITDA2 2.3M$ 1.6M$ 5.0M$ 7.9M$ 4.4M$
AIR T, INC. FY Financial Highlights (For the Last Twelve-Month Period Ended 9/30) 12 LTM RESULTS 1 Adjusted EBITDA includes addition of share-based compensation and severance expense adjustments to enhance comparability with current year’s presentation. 2 See reconciliation from reported Revenue, Operating Income, and Adjusted EBITDA to LTM figures on pages 35, 46 and 47 3 In LTM 2Q23, Adjusted EBITDA was reduced by one-time ERC credit of $9.1M 2Q233 2Q24 2Q251 2Q26 2Q27 Revenue 208.4M$ 286.2M$ 284.1M$ 279.2M$ 454.5M$ Adjusted EBITDA2 4.8M$ 5.1M$ 9.0M$ 10.8M$ 6.0M$
13 GROWTH STRATEGIES
GROWTH STRATEGIES Our four growth strategies are... 14 ■ Invest to build our current high-performing businesses. ■ Seek to acquire new cash-flow generating businesses. ■ Find investment opportunities and fund alongside third-party capital partnerships. ■ Identify great marketable securities or alternative assets.
GROWTH STRATEGY 1 We plan to reinvest in projects at our high-performing businesses by... 15 ■ Purchasing commercial aircraft for trading, leasing and part-out. ■ Purchasing engine parts inventory. ■ Funding deicer builds for Global Ground Support.
GROWTH STRATEGY 2 We seek to acquire new cash-flow generating businesses by... 16 ■ Identifying and acquiring high- performing businesses, which either complement our current portfolio or diversify into industries beyond aviation.
GROWTH STRATEGY 3 We plan to identify great marketable securities or alternative assets by... 17 ■ Searching for another committed activist opportunity. ■ Investing in distressed and high yield securities. ■ Investing in small cap securities. ■ Further investing in our current securities portfolio.
GROWTH STRATEGY 4 We plan to create unique investment products with outside capital partners by... 18 ■ Offering thoughtful and sustainable products with attractive return profiles ■ Attracting and retaining sophisticated investment professionals and creating space for talented asset managers.
Theoretical Toy Model Public Company versus Private Equity Fund 19 TOY MODEL ASSUMPTIONS Annual Return on Investment 5% Taxes Paid by PE Fund @ 7-year Intervals 30% Year Public Company $1 Private Equity Fund $1 Taxes Paid 0 $1.00 $1.00 $0.00 7 $1.34 $1.24 $0.10 14 $1.89 $1.59 $0.15 21 $2.65 $2.04 $0.19 28 $3.73 $2.63 $0.25 35 $5.25 $3.38 $0.32 42 $7.39 $4.34 $0.41 49 $10.40 $5.57 $0.53 Total $1.96 Question: Does a permanent capital vehicle like a public company have a structural advantage compared to a 7-year PE fund vehicle? Hypothesis: For the straightforward reason that PE funds trade assets every 7 years, public companies tend to have a significant structural advantage at every timescale. Complicating Factors: • Do annual corporate tax burdens of a public C- corporation differ from a company owned by a public company? • Does the inherent churn of buying and selling businesses within a public company overstate the advantage vs PE Fund? • Theoretically, the public company can buy and sell assets without regard to the calendar, therefore at better prices. • Cost and burden of being a public company. Note: In this model we assume that assets are sold by the private equity fund every seven years and reinvested after paying capital gains taxes on the gain on the sale. It is also assumed that the Public Company does not sell the assets and therefore does not pay capital gains tax. The model does not consider taxes paid on operational results. This projection, forecast or estimate is a forward-looking statement and an example only. It is based upon certain assumptions which are speculative in nature and may vary materially from actual results.
20 Portfolio of Companies 1 On June 10, 2026, Air T and Crestone management purchased 10% common interests of CAM from Mill Road investors. The parties also restructured CAM following the exit of Mill Road. Following these transactions, Air T's remaining investment interest in CAM is approximately 29%. Company Name Ownership % Acquisition Year (Calendar) Website Overnight Air Cargo Mountain Air Cargo 100% N/A mtaircargo.com CSA Air 100% N/A csaair.com Worldwide Aircraft Services 100% 2023 worldwide-aircraft.com Royal Aircraft Services 100% 2025 royalaircraft.com Commercial Aircraft, Engines, and Parts Contrail Aviation Support 100% 2016 contrail.com AirCo 100% 2017 aircollc.com AirCo Services 100% 2017 aircoservices-ict.com Jet Yard 100% 2017 jetyard.com Worthington Aviation 100% 2018 worthingtonav.com Air'Zona 100% 2021 airzonaaircraft.com LGSS 100% 2023 lgss-aero.com Aviation Leasing and Asset Management Crestone Air Partners ("CAP") 84% N/A crestoneairpartners.com Arena Aviation Partners B.V. 84% 2026 arena-aviationcapital.com Ground Support Equipment Global Ground Support 100% 1997 globalgroundsupport.com Digital Solutions Ambry Hill Technologies 100% 2018 ambryhill.com WorldACD 70% 2022 worldacd.com Regional Airline Regional Express Holdings 100% 2025 rex.com.au Corporate & Other BCCM Advisors 100% 2017 bccmadvisors.com Delphax Solutions 100% 2017 delphaxsolutions.com Runway Aero Advisors 100% N/A runwayaeroadvisors.com Wolfe Lake CRE 100% 2021 N/A Non-Consolidated Crestone Asset Management ("CAM") Note 1 N/A crestoneairpartners.com Bloomia Holdings, Inc. 33% 2018 lendway.com Cadillac Casting Inc. 20% 2019 cadillaccasting.com
21 Acquisition Timeline (2016-2026) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Contrail Aviation CAEAP Jet Yard CAEAP Wolfe Lake CRE Corporate Royal Aircraft Overnight Air Cargo AirCo, AirCo Services CAEAP Ambry Hill Tech Digital Solutions Air'Zona CAEAP WorldACD Digital Solutions LGSS CAEAP Regional Express Holdings Ltd Regional Airline Worthington Aviation CAEAP Worldwide Aircraft Overnight Air Cargo Arena Aviation Capital ALAM
Worldwide Aircraft Services: Scaling a Regional MRO 22 CASE STUDY ■ In January 2023, Air T acquired Worldwide Aircraft Services (WASI), a Springfield, MO-based FAA/EASA Part 145 repair station founded in 1986, for $3.0M ($1.6M cash + $1.4M seller’s note). ■ WASI maintains regional jets, turboprops, cargo and special-mission aircraft from a 54,000 sq. ft. facility at Branson National Airport, with a fully equipped engine shop and run stands. ■ Under Air T, WASI expanded third-party maintenance and project work, lifting revenue from $7.6M in FY24 to $11.8M in FY26 and more than tripling Adj. EBITDA from $0.6M to $2.2M. ■ The seller’s note was repaid by January 2026 and WASI is debt-free; tangible book value grew from $0.7M to $3.2M, and FY26 Adj. EBITDA of $2.2M is over 70% of the purchase price. 1 Defined as A/R + Inventory – A/P FY24 FY26 Revenue (for 12-month period ended 3/31) 7.6M$ 11.8M$ Adj. EBITDA (for 12-month period ended 3/31) 0.6M$ 2.2M$ Total Debt 0.8M$ -$ Total Assets 6.3M$ 8.2M$ Tangible Net Working Capital1 1.4M$ 1.7M$ Tangible Book Value 0.7M$ 3.2M$
Regional Airline 23 SEGMENT 1 ■ Acquired in December 2025. ■ Includes Regional Express Holdings Ltd. (REX) and Australian Airline Pilot Academy (AAPA). ■ Regional Airline servicing regional and remote communities in Australia. ■ Owner and operator of the largest Saab 340 fleet in the world. ■ Significant inputs into Adjusted EBITDA include $9.4M of D&A. Fuel spend is the primary driver of the Adjusted EBITDA loss. Higher unscheduled engine removals, together with lower engine throughput from third-party maintenance, repair and overhaul providers, also contributed to the loss by reducing the number of aircraft available for service below planned levels. * See Adjusted EBITDA reconciliation on slide 34 Three-month period ended 9/30 2Q26 2Q27 Revenue -$ 56.8M$ Adjusted EBITDA* -$ (0.9M)$
Overnight Air Cargo 24 SEGMENT 2 ■ We operate two of the nine FedEx feeder airlines in North America. ■ Business units Mountain Air Cargo and CSA Air have a 40+ year history with FedEx. ■ Air T Companies since 1982 and 1983. ■ Combined EBITDA increased by $0.8M YoY, driven by improved FedEx flight and maintenance results. An asset-light, predictable business. * See Adjusted EBITDA reconciliation on slide 34 Three-month period ended 9/30 2Q26 2Q27 Revenue 31.1M$ 34.5M$ Adjusted EBITDA* 1.8M$ 2.6M$
Commercial Aircraft Engines and Parts 25 SEGMENT 3 ■ We buy aircraft and engines, then either lease, trade, or send them to part out. ■ We supply parts to maintenance, repair, and overhaul facilities (MRO). ■ Companies in this segment include Contrail, AirCo, AirCo Services, Worthington, Jet Yard, Air’Zona, and LGSS. ■ Adjusted EBITDA decreased by $5.4M YoY, driven by lower revenue at Contrail due to a $7.0 million one-time gain on sale of an aircraft in the prior year quarter. This is partially offset by improvement at AirCo and LGSS. A niche between aircraft owners and MRO shops, this segment will seek to grow by coordinating activities. * See Adjusted EBITDA reconciliation on slide 34 Three-month period ended 9/30 2Q26 2Q27 Revenue 21.5M$ 28.5M$ Adjusted EBITDA* 6.9M$ 1.5M$
Ground Support Equipment 26 SEGMENT 4 ■ We manufacture deicing equipment, scissor lift trucks, and other ground support equipment. ■ Sole-source deicer supplier to the US Air Force for 20+ years. ■ Highly efficient light manufacturing facility. ■ The segment is comprised of Global Ground Support LLC. ■ Air T Company since 1998. ■ The increase in revenue and adjusted EBITDA was primarily attributable to the higher number of deicing trucks sold in the current quarter to a large customer (the U.S. Military). Segment’s order backlog was $11.6 million as of 9/30/26 compared to $12.9 million as of 9/30/25. * See Adjusted EBITDA reconciliation on slide 34 Three-month period ended 9/30 2Q26 2Q27 Revenue 9.6M$ 18.9M$ Adjusted EBITDA* 1.7M$ 2.7M$
Aviation Leasing and Asset Management 27 SEGMENT 5 ■ The Aviation Leasing and Asset Management segment was formed in June 2026 and consists of Crestone Air Partners and Arena. ■ Both entities originate and structure asset acquisitions and related financings, and provide lease administration, technical and risk management, and remarketing services for aircraft and engines on lease to airlines globally. ■ Significant inputs into Adjusted EBITDA include $3.3M of unfavorable earnout remeasurement, $2.2M of D&A, and $0.5M of post-acquisition integration costs. * See Adjusted EBITDA reconciliation on slide 34 Three-month period ended 9/30 2Q26 2Q27 Revenue -$ 7.8M$ Adjusted EBITDA* -$ 1.3M$
Digital Solutions 28 SEGMENT 6 ■ Digital Solutions develops and provides digital aviation and other business services to customers within the aviation industry to generate recurring subscription revenues. Digital Solutions has historically been reported as part of the central corporate function referred to as Corporate and Other. ■ Companies in this segment include Ambry Hill Technologies and WorldACD. ■ Combined Adjusted EBITDA improved by $0.2M, as revenue growth and lower labor costs offset residual cost pressure in this group of companies. * See Adjusted EBITDA reconciliation on slide 34 Three-month period ended 9/30 2Q26 2Q27 Revenue 2.2M$ 2.6M$ Monthly Recurring Revenue (MRR) 0.7M$ 0.9M$ Adjusted EBITDA* (0.1M)$ 0.1M$
Aircraft Asset Management 29 ■ We manage assets for ourselves and our investor partners. The asset types include leased aircraft, consignments, and teardowns. ■ Our Aircraft JVs consist of the aircraft portfolio managed by Crestone Air Partners and Arena Aviation Partners, as well as additional assets from other strategic partnerships. ■ Our Aircraft JVs receive standard aviation industry management fees, including origination fees, administrative fees, disposition fees, and an incentive fee above a certain hurdle rate (which varies by investment transaction). ■ Our Aircraft JV investors seek to generate 10%+ returns after fees. As of: 3/31/24 3/31/25 3/31/26 9/30/26 Aircraft Assets Under Management (Net of Dispositions)1 428M$ 577M$ 917M$ 3,353M$ Aircraft Assets Purchased2 429M$ 632M$ 397M$ 517M$ 1 Reflects aircraft assets under management as of the reporting date 2 Reflects aircraft assets acquired during the fiscal year ended 3/31/24, 3/31/25, 3/31/26, and the half-year ended 9/30/26
AIR T, INC. FY Revenue by Segment (For the Three-Month Period Ended 9/30, all $s in Millions) 30 2Q RESULTS Quarter Ended September 30 H/(L) 2Q26 2Q27 Overnight Air Cargo 31.1 34.5 3.5 11% Commercial Aircraft, Engines and Parts 21.5 28.5 7.0 33% Ground Support Equipment 9.6 18.9 9.2 96% Digital Solutions 2.2 2.6 0.4 18% Regional Airline New 56.8 NM NM Aviation Leasing and Asset Management New 7.8 NM NM Reportable Segments Total 64.4 149.0 84.6 131% Corporate, Other, and Intersegment Eliminations (0.2) (2.1) (1.8) 784% Consolidated Air T, Inc. 64.2 146.9 82.8 129%
AIR T, INC. FY Revenue by Segment (For the Twelve-Month Period Ended 9/30, all $s in Millions) 31 LTM RESULTS 1 See reconciliation from reported Revenue, Operating Income, and Adjusted EBITDA to LTM figures on pages 35, 46 and 47 LTM Ended September 30 H/(L) 2Q26 2Q27 Overnight Air Cargo 125.9 131.9 6.0 5% Commercial Aircraft, Engines and Parts 103.3 95.4 (7.9) (8%) Ground Support Equipment 41.8 45.0 3.2 8% Digital Solutions 8.1 10.0 2.0 24% Regional Airline New 168.0 NM NM Aviation Leasing and Asset Management New 9.1 NM NM Reportable Segments Total 279.0 459.4 180.4 65% Corporate, Other, and Intersegment Eliminations 0.2 (4.9) (5.1) 2,741% Consolidated Air T, Inc. 279.2 454.5 175.3 63%
AIR T, INC. Adjusted EBITDA by Segment (For the Three-Month Period Ended 9/30, all $s in Millions) 32 2Q RESULTS Quarter Ended September 30 H/(L) 2Q26 2Q27 Overnight Air Cargo 1.8 2.6 0.8 45% Commercial Aircraft, Engines and Parts 6.9 1.5 (5.4) (78%) Ground Support Equipment 1.7 2.7 1.1 64% Digital Solutions (0.1) 0.1 0.2 (249%) Regional Airline New (0.9) NM NM Aviation Leasing and Asset Management New 1.3 NM NM Reportable Segments Total 10.3 7.3 (2.9) (29%) Corporate, Other, and Intersegment Eliminations (2.4) (3.0) (0.6) (24%) Consolidated Air T, Inc. 7.9 4.4 (3.5) (45%)
AIR T, INC. Adjusted EBITDA by Segment (For the Twelve-Month Period Ended 9/30, all $s in Millions) 33 LTM RESULTS 1 See reconciliation from reported Revenue, Operating Income, and Adjusted EBITDA to LTM figures on pages 35, 46 and 47 LTM Ended September 30 H/(L) 2Q26 2Q27 Overnight Air Cargo 6.3 8.2 1.9 31% Commercial Aircraft, Engines and Parts 11.0 0.8 (10.2) (93%) Ground Support Equipment 2.3 3.7 1.5 65% Digital Solutions 0.0 0.2 0.2 1,400% Regional Airline New 1.0 NM NM Aviation Leasing and Asset Management New 1.0 NM NM Reportable Segments Total 19.5 14.9 (4.6) (24%) Corporate, Other, and Intersegment Eliminations (8.7) (9.0) (0.3) (3%) Consolidated Air T, Inc. 10.8 6.0 (4.9) (45%)
Adjusted EBITDA Reconciliation 34 2Q RESULTS (For the Three-Month Period Ended 9/30) 2Q23 2Q24 2Q25 2Q26 2Q27 GAAP Operating Income / (Loss) 0.2M$ 0.8M$ 3.6M$ 5.5M$ (11.8M)$ Rex-Related Expenses: -$ -$ -$ -$ 9.4M$ Depreciation & Amortization -$ -$ -$ -$ 9.4M$ Post-Acquisition Integration -$ -$ -$ -$ -$ Crestone / Arena Expenses: -$ -$ -$ -$ 2.7M$ Acquisition Transaction & Integration Expenses -$ -$ -$ -$ 0.5M$ Depreciation & Amortization -$ -$ -$ -$ 2.2M$ Other Deal-Sourcing Expenses -$ -$ -$ 1.6M$ -$ Depreciation (excluding leased engine depreciation) 0.6M$ 0.7M$ 0.9M$ 0.7M$ 0.8M$ Asset Impairment, Write-Downs, Restructuring 1.5M$ 0.0M$ 0.1M$ 0.2M$ 0.1M$ Earnout Remeasurement -$ -$ 0.3M$ (0.3M)$ 3.4M$ TruPs Issuance Expenses & Other 0.0M$ 0.1M$ 0.1M$ 0.1M$ (0.1M)$ Adjusted EBITDA 2.3M$ 1.6M$ 5.0M$ 7.9M$ 4.4M$
Adjusted EBITDA Reconciliation 35 LTM RESULTS (For the Twelve-Month Period Ended 9/30) 1 Includes the addition of share-based compensation, severance expense and deal-sourcing expense adjustments to enhance comparability with current year’s presentation. 2 One-time transaction-based tax imposed by Australian state and territory governments on the transfer of interests in landholding entities, incurred directly as a result of the acquisition and not expected to recur 3 See reconciliation from reported Revenue, Operating Income, and Adjusted EBITDA to LTM figures on pages 35, 46 and 47 2Q23 2Q24 2Q251 2Q26 2Q27 Operating Income (GAAP) 9.1M$ (4.0M)$ 2.9M$ 5.2M$ (42.2M)$ Rex-Related Expenses: -$ -$ -$ 1.8M$ 35.0M$ Acquisition and Deal-Sourcing -$ -$ -$ 1.8M$ 3.1M$ Post-Acquisition Integration -$ -$ -$ -$ 1.4M$ Australian One-Time Landholder Duty Tax 2 -$ -$ -$ -$ 3.4M$ Depreciation & Amortization -$ -$ -$ -$ 27.0M$ Crestone / Arena Expenses: -$ -$ -$ -$ 6.0M$ Acquisition Transaction & Integration Expenses -$ -$ -$ -$ 3.5M$ Depreciation & Amortization -$ -$ -$ -$ 2.5M$ Other Deal Sourcing Expenses -$ -$ -$ -$ -$ Depreciation (excluding leased engine depreciation) 2.3M$ 2.7M$ 3.1M$ 2.7M$ 3.0M$ Asset Impairment, Write- Downs, Restructuring 2.3M$ 6.3M$ 1.7M$ 1.2M$ 0.7M$ One-Time ERC Credit (9.1M)$ -$ -$ -$ -$ Earnout Remeasurement -$ -$ 0.3M$ (0.5M)$ 3.4M$ TruPs Issuance Expenses & Other1 0.2M$ 0.1M$ 1.0M$ 0.4M$ 0.1M$ Adjusted EBITDA 4.8M$ 5.1M$ 9.0M$ 10.8M$ 6.0M$
Crestone Air Partners: Air T Flywheel in Action 36 Excerpts below from Air T 2026 Letter to Shareholders: Identify Good Ideas: • “Crestone management spun out of Contrail when it became clear that we had a team that was more into leasing than Contrail’s core engine teardown business.” Match with Capital Partners: • “We matched the Crestone team with capital to get them going, funded a cash burn j-curve, then got out of the way.” Secure and Empower Dynamic Management: • “The Crestone team did the rest-- they’ve grown wonderfully over the past six (6) years…When Arena was available for sale, and looking for a happy place to land their business, the Blue Owl people encouraged us to take a look.” Generate Extremely Attractive Returns on Capital: • “The resulting merger transaction builds scale and solves the needs of the sellers and younger talent.” • “…Blue Owl and other investors are pleased by the returns they are getting through Crestone’s aircraft & leasing management.” Build a Brand and Industrious Network: • “…our independent yet interrelated organization is likely to bring opportunities for value creation through Air T sister-company collaboration.” Build a brand and industrious network FLYWHEEL Generate extremely attractive returns on capital Secure and empower dynamic management Match with capital partners Identify good ideas SPOTLIGHT
37 AIR T, INC. Distributions Received from Equity Method Investees DISTRIBUTIONS Three-month period ended 9/30 Air T's Major Investees 9/30/24 9/30/25 9/30/26 Air T's Adjusted EBITDA 5.0M$ 7.9M$ 4.4M$ Plus: Distributions Received from Investments: Bloomia -$ -$ -$ CCI -$ -$ -$ Aircraft L.P. Interests 0.7M$ 0.9M$ 6.2M$ Other Investments 0.1M$ 0.2M$ 0.3M$ Total 5.8M$ 9.0M$ 10.9M$
GAAP Book Value of Non-Operating Assets 38 AIR T, INC. owns the following public and private securities: OTHER ASSETS 1 Formerly known as Lendway Inc. and Insignia Systems, Inc. (ISIG); Air T owned 1,605,000 shares of Bloomia (TULP), representing 33.2% of outstanding shares, which had a market value of $4.0M as of 9/30/26 2 Balances reflect the equity method of accounting at the specified period end. 3 Consists of the book value of the portfolio managed by Crestone Asset Management, LLC ("CAM"), as well as additional assets from other strategic partnerships, subject to repayment of AAM 24-1 debt obligations. AIR T, INC. Non-Operating Assets 3/31/23 3/31/24 3/31/25 3/31/26 9/30/26 Bloomia Holdings, Inc. (TULP) Stock, "GAAP Book Value"1 3.8M$ 2.2M$ 0.7M$ (0.0M)$ 2.4M$ CCI Investments (20.1% as of 9/30/26), "GAAP Book Value"2 3.1M$ 3.7M$ 3.9M$ 3.6M$ 3.6M$ Investment in BCCM Funds 0.5M$ 0.6M$ 0.6M$ 0.9M$ 1.1M$ Aircraft L.P. Interests3 8.2M$ 10.5M$ 14.3M$ 22.6M$ 20.2M$ Other Investments 2.5M$ 1.6M$ 0.1M$ (0.0M)$ (0.0M)$ Total GAAP Book Value 18.1M$ 18.6M$ 19.6M$ 27.0M$ 27.3M$
(in $USD millions) Rate Maturity Type 2Q27 FY26 AIR T, INC. DIRECT & GUARANTEED Bank Debt Alerus Consolidated Term Note SOFR + 2.50% 8/27/2031 Bank 11.4 - Alerus Term Note A SOFR + 2.00% 8/15/2029 - 8.3 Alerus Term Note C SOFR + 2.25% 5/15/2030 Bank - 0.9 Alerus Accordion Note SOFR + 2.50% 1/23/2027 Bank 3.5 - Alerus Revolver ($25M capacity as of 9/30/26) SOFR + 2.50% 8/27/2029 Bank 21.2 10.5 Total Bank Debt 36.1 19.8 Other Debt / Guarantees Trust Preferred Securities (excl. 520K shares posted as collateral) 8.00% 6/7/2049 TruPs 40.8 38.7 Holdco First-Loss on ATA 25.1 (25% x $41.3M)1 11.50% 12/15/2031 Guarantee 10.3 10.3 Holdco Guarantee of Contrail Revolver ($2M)2 - - Guarantee 2.0 2.0 Other Debt / Guarantees 53.1 51.0 Total Direct & Guaranteed 89.2$ 70.8$ NOT AIR T, INC. GUARANTEED Contrail Contrail Revolver 4001 SOFR + 3.11% 11/24/2027 Bank 12.5 8.2 Term Loan - OCAS II SOFR + 2.50% 4/1/2029 Bank 3.3 - Term Loan - OCAS I SOFR + 2.50% 11/28/2026 Bank 0.2 - Less: Holdco Guarantee of Contrail Revolver ($2M) - - (Deduct) (2.0) (2.0) Total Contrail (Net) 13.9 6.2 WorldACD (ATA 22.1 + Shanwick)4 ATA Alerus Term Loan 3001 SOFR + 1.90% 11/24/2032 Bank 5.1 6.0 ATA - ING Term Loan A 3.50% 2/1/2027 Bank 0.3 0.7 ATA - ING Term Loan B 4.00% 5/1/2027 Bank 1.1 1.2 Total WorldACD 6.6 7.8 REX Debt, Net of HoldCo Guarantee Commonwealth 40-Yr Sweep Note (fair value: $26.1M; face: $71.2M) Accretion 11/11/2054 Aussie 26.1 23.8 Line of Credit - Commonwealth 6.00% 12/17/2032 Aussie 22.1 - ATA 25.1 Honeywell Term Note 11.50% 12/15/2031 Private 41.4 41.3 Less: Holdco First-Loss (25%)1 - - (Deduct) (10.3) (10.3) Total REX (Net) 79.2 54.8 Other Wolfe Lake Real Estate Secured Term Note 3.65% 12/2/2031 Bank 8.6 8.8 AAM 24-1 Note (Honeywell) 8.50% 5/31/2035 Private 75.0 60.0 MAC HQ Real Estate Secured - BofA Term Loan SOFR + 1.86% 2/21/2030 Bank 2.1 2.2 Total Other 85.7 70.9 Total Non-Air T Guaranteed 185.4$ 139.8$ TOTAL GROSS DEBT 274.7$ 210.6$ Less: Cash and Cash Equivalents (22.1) (20.3) TOTAL DEBT, NET OF CASH AND CASH EQUIVALENTS 252.5$ 190.2$ 39 CONSOLIDATED DEBT SCHEDULE AIR T, INC.’s capital structure is designed to appropriately shape our bet sizes; in part by utilizing non-recourse leverage For example, AIR T guarantees Contrail’s bank loans to a maximum limit of $2.0 million. ¹ HoldCo guarantees 25% first-loss on ATA 25.1 ($41.4M): 25%×$41.4M=$10.3M shown in Air T guaranteed; deducted from REX net. ² HoldCo guarantees $2M Contrail revolver. ³ OCAS = Contrail-related party debt to minority interest owner. ⁴ ATA 22.1 + Shanwick combined under WorldACD.
40 Q&A WITH MANAGEMENT
Our interactive Q&A capability, through Slido.com, allows shareholders to ask questions of our management. Recently submitted questions have been answered below. To submit your own question, go to (https://app.sli.do/event/j8drfixw). 41 No new questions were received this quarter
APPENDIX 42
43 1 Consists of other consolidated businesses that are insignificant and do not fit cleanly into the Commercial Aircraft Engines and Parts, Overnight Air Cargo, Ground Support Equipment, Digital Solutions, Regional Airline, or Aviation Leasing and Asset Management segments. Corporate and Other Subcomponent of Operating Income (excluding Equity Method Investments) Three-month period ended 9/30 2Q26 2Q27 Corporate Overhead (3.7M)$ (2.9M)$ Other Subsidiaries1 (0.7M)$ (0.7M)$ Total Corporate and Other (4.4M)$ (3.6M)$
44 Corporate Overhead Detail 1 Enterprise wide procurement of software, insurance, and services on behalf of subsidiaries to achieve economies of scale and better pricing. 2 Direct holding company operating expenses not attributable to operating subsidiaries. 3 External audit, financial reporting, external legal fees, filing and listing fees and other public company specific obligations. 4 Centralized treasury, payroll, tax, IT, benefits administration and executive functions. 5 Deal sourcing, due diligence and advisory costs related to acquisitions. 6 Allocation of shared service costs and direct central purchase usage to subsidiaries based on actual consumption or benefit received. Three-month period ended 9/30 2Q26 2Q27 Central Purchases1 2.3M$ 2.6M$ HoldCo Costs2 0.8M$ 1.2M$ Costs of Being a Publicly Traded Company3 0.6M$ 0.8M$ Shared Services4 0.9M$ 1.4M$ M&A Related Costs5 1.7M$ -$ Subtotal 6.4M$ 6.0M$ Business Consumption Allocations6 (2.7M)$ (3.0M)$ Total Corporate Overhead 3.7M$ 2.9M$
45 Consolidated Debt Schedule (Pre-FY26) (in $USD millions) Rate Maturity Type FY25 FY24 FY23 FY22 AIR T, INC. DIRECT & GUARANTEED Bank Debt Alerus Term Note A SOFR + 2.00% 8/15/2029 Bank 9.8 - - - Alerus Revolver ($20M capacity as of 9/30/25) SOFR + 1.90% 8/28/2027 Bank 6.1 - - - MB&T Notes A, B, D, E, F (retired FY25) 4.50% - 5.09% 1/1/2028 Bank - 11.5 13.6 15.3 MB&T Revolver (retired FY24) - Retired FY24 Bank - - 8.7 11.0 Total Bank Debt 15.9 11.5 22.4 26.2 Other Debt / Guarantees Trust Preferred Securities (excl. 520K shares posted as collateral) 8.00% 6/7/2049 TruPs 35.3 34.2 25.6 25.6 Holdco Guarantee of Contrail Revolver ($2M)2 - - Guarantee 1.6 1.6 1.6 - Other Debt / Guarantees 36.9 35.8 27.2 25.6 Total Direct & Guaranteed 52.8$ 47.3$ 49.6$ 51.8$ NOT AIR T, INC. GUARANTEED Contrail Contrail Revolver 597 - Paid off FY26 Bank 3.1 3.5 12.4 3.8 Contrail Term Note J - Paid off FY26 Bank 8.8 - - - Contrail Term Loan G - Paid off FY25 Bank - 14.9 38.2 44.9 Contrail Term Note I - Paid off FY25 Bank - 10.0 - - Contrail Term Loan H - Paid off FY23 Bank - - - 8.7 Less: Holdco Guarantee of Contrail Revolver ($2M) - - (Deduct) (1.6) (1.6) (1.6) - Total Contrail (Net) 10.3 26.8 49.0 57.5 WorldACD (ATA 22.1 + Shanwick)4 ATA - Bridgewater 2878 - Paid off FY26 Bank 3.5 4.0 4.5 5.0 ATA - ING Term Loan A 3.50% 2/1/2027 Bank 1.3 1.9 2.6 3.3 ATA - ING Term Loan B 4.00% 5/1/2027 Bank 1.1 1.1 1.1 1.1 Total WorldACD 5.9 7.0 8.2 9.4 Other Wolfe Lake Real Estate Secured Term Note 3.65% 12/2/2031 Bank 9.1 9.3 9.6 9.8 AAM 24-1 Note (Honeywell) 8.50% 5/31/2035 Private 30.0 15.0 - - MAC HQ Real Estate Secured - BofA Term Loan SOFR + 1.86% 2/21/2030 Bank 2.3 - - - AirCo 1 MSL - Paid off FY25 Bank - 5.4 6.4 6.4 Jet Yard Term Loan - Paid off FY25 Bank - 1.8 1.8 1.9 WASI Seller's Note - Paid off FY26 Bank 0.4 0.8 1.3 - Total Other 41.7 32.4 19.1 18.2 Total Non-Air T Guaranteed 57.9$ 66.2$ 76.3$ 85.1$ TOTAL GROSS DEBT 110.7$ 113.5$ 125.9$ 136.9$ Less: Cash and Cash Equivalents (5.9) (7.1) (5.8) (5.6) TOTAL DEBT, NET OF CASH AND CASH EQUIVALENTS 104.8$ 106.4$ 120.1$ 131.2$
Operating Income Reconciliation (Between Twelve-Month Period Ended 9/30 and As Reported) 46 LTM RESULTS 2Q23 2Q24 2Q25 2Q26 2Q27 Operating Income / (Loss) FY Ended 3/31 (10-K) 8.8M$ (4.4M)$ 1.3M$ 1.9M$ (11.2M)$ Add: Operating Income / (Loss) - Six Months Ended 9/30, Current Year (10-Q) 1.0M$ 1.4M$ 3.1M$ 6.4M$ (24.6M)$ Less: Operating Income / (Loss) - Six Months Ended 9/30, Prior Year (10-Q) 0.7M$ 1.0M$ 1.4M$ 3.1M$ 6.4M$ LTM Operating Income / (Loss) FY Ended 9/30 9.1M$ (4.0M)$ 2.9M$ 5.2M$ (42.2M)$
Revenue Reconciliation (Between Twelve-Month Period Ended 9/30 and As Reported) 47 LTM RESULTS 2Q23 2Q24 2Q25 2Q26 2Q27 Revenue, FY Ended 3/31 (10-K) 177.1M$ 247.3M$ 286.8M$ 291.9M$ 327.1M$ Add: Revenue - Six Months Ended 9/30, Current Year (10-Q) 111.6M$ 150.4M$ 147.7M$ 135.0M$ 262.4M$ Less: Revenue - Six Months Ended 9/30, Prior Year (10-Q) 80.2M$ 111.6M$ 150.4M$ 147.7M$ 135.0M$ Revenue, FY Ended 9/30 208.4M$ 286.2M$ 284.1M$ 279.2M$ 454.5M$
SUMMARY RISK FACTORS 48 For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. The purchase of securities of Air T, Inc., the “Company,” is highly speculative and involves a very high degree of risk. An investment in the Company is suitable only for persons who can afford the loss of their entire investment. Accordingly, in making an investment decision with respect to the Company’s securities, investors should carefully consider all material risk factors, including the risks, uncertainties and additional information set forth below as well as set forth in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our definitive proxy statements, all of which are filed with the SEC. Additional risks not presently known or are currently deemed immaterial could also materially and adversely affect our financial condition, results of operations, business and prospects. General Business Risks ● Market fluctuations may affect the Company’s operations. ● Rising inflation may result in increased costs of operations and negatively impact the credit and securities markets generally, which could have a material adverse effect on our results of operations and the market price of our securities. ● We could experience significant increases in operating costs and reduced profitability due to competition for skilled management and staff employees in our operating businesses. ● Legacy technology systems require a unique technical skillset which is becoming scarcer. ● Security threats and other sophisticated computer intrusions could harm our information systems, which in turn could harm our business and financial results. ● We may not be able to insure certain risks adequately or economically. ● Legal liability may harm our business. ● Our business might suffer if we were to lose the services of certain key employees.
Risks Related to Our Segment Operations ● The operating results of our segments may fluctuate, particularly our commercial aircraft, engines and parts segment. ● Our overnight air cargo segment is dependent on a significant customer. ● Our dry-lease agreements with FedEx subject us to operating risks. ● Because of our dependence on FedEx, we are subject to the risks that may affect FedEx’s operations. ● A material reduction in the aircraft we fly for FedEx could materially adversely affect our business and results of operations. ● Sales of deicing equipment can be affected by weather conditions. ● We are affected by the risks faced by commercial aircraft operators and MRO companies because they are our customers. ● Our engine values and lease rates, which are dependent on the status of the types of aircraft on which engines are installed, and other factors, could decline. ● Upon termination of a lease, we may be unable to enter into new leases or sell the airframe, engine or its parts on acceptable terms. ● Failures by lessees to meet their maintenance and recordkeeping obligations under our leases could adversely affect the value of our leased engines and aircraft which could affect our ability to re-lease the engines and aircraft in a timely manner following termination of the leases. ● We may experience losses and delays in connection with repossession of engines or aircraft when a lessee defaults. ● Our commercial aircraft, engines and parts segment and its customers operate in a highly regulated industry and changes in laws or regulations may adversely affect our ability to lease or sell our engines or aircraft. ● Our aircraft, engines and parts could cause damage resulting in liability claims. ● We have risks in managing our portfolio of aircraft and engines to meet customer needs. ● Liens on our engines or aircraft could exceed the value of such assets, which could negatively affect our ability to repossess, lease or sell a particular engine or aircraft. ● In certain countries, an engine affixed to an aircraft may become an addition to the aircraft and we may not be able to exercise our ownership rights over the engine. ● Higher or volatile fuel prices could affect the profitability of the aviation industry and our lessees’ ability to meet their lease payment obligations to us. ● Interruptions in the capital markets could impair our lessees’ ability to finance their operations, which could prevent the lessees from complying with payment obligations to us. For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS 49
Risks Related to Our Segment Operations (continued) ● Our lessees may fail to adequately insure our aircraft or engines which could subject us to additional costs. ● If our lessees fail to cooperate in returning our aircraft or engines following lease terminations, we may encounter obstacles and are likely to incur significant costs and expenses conducting repossessions. ● If our lessees fail to discharge aircraft liens for which they are responsible, we may be obligated to pay to discharge the liens. ● If our lessees encounter financial difficulties and we restructure or terminate our leases, we are likely to obtain less favorable lease terms. ● Withdrawal, suspension or revocation of governmental authorizations or approvals could negatively affect our business. ● We are exposed to foreign exchange rate fluctuations and, through our international operations, we may suffer losses as a result of adverse fluctuations in foreign currency exchange rates. Risks Related to Our Structure and Financing/Liquidity Risks ● Our holding company structure may increase risks related to our operations. ● A small number of stockholders has the ability to control the Company. ● Although we do not expect to rely on the “controlled company” exemption, we do qualify as a “controlled company” within the meaning of the Nasdaq listing standards, and we could rely on exemptions from certain corporate governance requirements. ● An increase in interest rates or in our borrowing margin would increase the cost of servicing our debt and could reduce our cash flow and negatively affect the results of our business operations. ● Our inability to maintain sufficient liquidity could limit our operational flexibility and also impact our ability to make payments on our obligations as they come due. ● Future cash flows from operations or through financings may not be sufficient to enable the Company to meet its obligations. ● A large proportion of our capital is invested in physical assets and securities that can be hard to sell, especially if market conditions are poor. ● To service our debt and meet our other cash needs, we will require a significant amount of cash, which may not be available. ● If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to seek alternatives. ● Despite our substantial indebtedness, we may incur significantly more debt, and cash may not be available to meet our financial obligations when due or enable us to capitalize on investment opportunities when they arise. 50 For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS
Risks Related to Our Structure and Financing/Liquidity Risks (continued) ● Our current financing arrangements require compliance with financial and other covenants and a failure to comply with such covenants could adversely affect our ability to operate. ● Future acquisitions and dispositions of businesses and investments are possible, changing the components of our assets and liabilities, and if unsuccessful or unfavorable, could reduce the value of the Company and its securities. ● We face numerous risks and uncertainties as we expand our business. ● Our business strategy includes acquisitions, and acquisitions entail numerous risks, including the risk of management diversion and increased costs and expenses, all of which could negatively affect the Company’s ability to operate profitably. ● Strategic ventures may increase risks applicable to our operations. ● Rapid business expansions or new business initiatives may increase risk. ● Our policies and procedures may not be effective in ensuring compliance with applicable law. ● Compliance with the regulatory requirements imposed on us as a public company results in significant costs that may have an adverse effect on our results. ● Deficiencies in our public company financial reporting and disclosures could adversely impact our reputation. Risks Related to Air T Funding ● The ranking of the Company’s obligations under the Junior Subordinated Debentures and the Guarantee creates a risk that Air T Funding may not be able to pay amounts due to holders of the Trust Preferred Securities. ● The Company has the option to extend the Trust Preferred Securities interest payment period. ● Tax event or investment company act redemption of the Trust Preferred Securities. ● The Company may cause the Junior Subordinated Debentures to be distributed to the holders of the Trust Preferred Securities. ● There are limitations on direct actions against the Company and on rights under the guarantee. ● The covenants in the Indenture are limited. ● Holders of the Trust Preferred Securities have limited voting rights. 51 For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS
Risks Related to Rex ● We may not be able to successfully integrate Rex into our operations, including our financial reporting processes, which could adversely affect our business, results of operations, and financial condition. ● Rex operates in a highly regulated industry, and failure to comply with applicable laws and regulations could materially adversely affect our business. ● The Rex Acquisition involves risks related to voluntary administration proceedings in Australia and the DOCA structure, including uncertainties regarding liabilities, claims, obligations, and potential adverse impacts on customer and counterparty acceptance of Rex’s business following the proceedings. ● Our purchase accounting for the Rex Acquisition is preliminary and may change, which could materially affect our reported results, including the amount of any bargain purchase gain. ● The recognition of a bargain purchase gain could increase scrutiny by investors and regulators, and could lead to disputes regarding valuations and assumptions. ● A significant portion of Rex’s revenues, expenses, assets, and liabilities may be denominated in Australian dollars, and fluctuations in exchange rates could adversely affect our reported results. ● We incurred and assumed significant obligations in connection with the Rex Acquisition, including obligations related to CFA Debt, and we may require additional liquidity to support Rex’s operations. ● Rex’s operating costs and revenues may be subject to volatility, and Rex may not be able to offset cost increases or revenue decreases through pricing or other measures. ● A substantial portion of Rex’s workforce is represented by labor unions under Enterprise Agreements, and labor disputes, work stoppages, or unsuccessful negotiations of replacement agreements could disrupt Rex’s operations and adversely affect our business and results of operations. ● Wage escalations and other cost-of-living adjustments under Rex’s Enterprise Agreements could increase Rex’s operating costs, and Rex may not be able to fully offset those increases through pricing or other measures. 52 For more detail and explanation, please see the Company’s public filings including its Form S-3 and prospectus supplements filed with the SEC. SUMMARY RISK FACTORS