Air T Q1 FY2027: Revenue Jumps 63% to $115.5M, but Operating Loss Hits $12.8M on Rex and Arena Integration Costs

summarizeSummary

Air T reported Q1 FY2027 revenue of $115.5M, up 63% YoY, but swung to a $12.8M operating loss driven by Rex integration costs and non-cash depreciation. The company also disclosed final terms for the Arena acquisition and launched a new Aviation Leasing segment.

check_boxKey Events · Earnings and Guidance · AIRT

• Q1 FY2027 Revenue Surges 63%

  Revenue reached $115.5M, up $44.6M from $70.9M in the prior-year quarter, driven by the first full quarter of Rex and the new Aviation Leasing segment.

• Operating Loss Widens to $12.8M

  Operating loss of $12.8M compared to operating income of $0.8M a year ago, driven by $8.8M non-cash D&A from Rex fleet revaluation and $3.0M Arena acquisition transaction costs.

• Rex Segment Posts Positive Adjusted EBITDA

  Rex generated $55.9M revenue and $1.9M Adjusted EBITDA, but an operating loss of $7.7M due to elevated depreciation from purchase accounting.

• Arena Acquisition Final Terms Disclosed

  Crestone acquired Arena for $33.9M ($21.7M cash + $12.2M contingent). Blue Owl invested $10M for 10.25% Class B preferred units; Air T owns 83.9% of Crestone.

auto_awesomeAnalysis · AIRT · Energy & Transportation

The first quarter delivered a dramatic revenue surge from the Rex and Arena acquisitions, yet the operating loss widened significantly due to non-cash depreciation from the Rex fleet revaluation and acquisition transaction costs. Liquidity remains tight with $21.7M in cash against $231.6M in net debt, and the new Aviation Leasing segment is still in its early ramp-up phase. The market will focus on whether Rex can sustain positive Adjusted EBITDA and whether the Arena platform can scale its fee revenue to offset fixed costs.