Air T Posts $15.8M Q1 Loss as Rex Integration and Debt Costs Weigh
AIRT has more than doubled off its 52-week low of $14.56.
Summary
Air T reported a $15.8 million Q1 FY2027 net loss, driven by Rex integration costs, higher interest expense, and acquisition-related charges. Revenue rose 63% to $115.5 million, but debt increased to $246.3 million and cash fell to $21.7 million.
Key Events · Earnings and Guidance · AIRT
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Q1 Net Loss Widens to $15.8M
Net loss attributable to Air T stockholders was $15.8 million for the quarter ended June 30, 2026, compared to a $1.6 million loss in the prior-year quarter. Diluted loss per share was $5.86.
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Revenue Up 63% on Rex Acquisition
Total revenue increased 63% to $115.5 million, driven by the regional airline segment (Rex) contributing $55.9 million. Overnight air cargo revenue was $30.0 million, commercial aircraft $20.5 million, and ground support equipment fell 76% to $3.7 million.
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Operating Loss Driven by Integration Costs
Operating loss was $12.8 million, including $3.0 million of Arena acquisition transaction costs and $8.8 million of depreciation and amortization at Rex. Rex's operating loss was $7.7 million, primarily due to $11.8 million in fuel expense.
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Debt Rises to $246.3M Net
Total debt, net of unamortized premiums and issuance costs, increased to $246.3 million from $208.2 million at March 31, 2026. This includes a $15 million advance under the Multiple Advance Note and a new $2.8 million Overline Note with Alerus.
Analysis · AIRT · Energy & Transportation
Air T's first quarter of fiscal 2027 swung to a $15.8 million net loss attributable to stockholders, compared to a $1.6 million loss a year ago. The loss reflects the full-quarter impact of the Rex regional airline acquisition, which contributed $55.9 million in revenue but also $7.7 million in operating losses, plus $3.0 million in Arena acquisition costs and a $3.4 million increase in interest expense. Total debt climbed to $246.3 million net, and cash declined to $21.7 million. The company states it has sufficient liquidity for at least 12 months, but the combination of operating losses, rising debt, and a shrinking cash position raises near-term financial risk.
At the time of this filing, AIRT was trading at $29.43 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $79.2M. The 52-week trading range was $14.56 to $35.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.