Air T Finalizes Rex Acquisition and Long-Term Financing

Air T ( (AIRT) ) has provided an update.

On December 17, 2025, Air T, Inc., through its subsidiary structure, completed the court-approved acquisition of all outstanding shares of Regional Express Holdings Limited (Rex), assuming approximately A$108 million of liabilities for a nominal cash price of $1.00, and simultaneously put in place a complex, multi-party financing stack to support Rex’s restructuring and ongoing operations. The deal is anchored by a US$40 million, 11.5% senior secured note issued to Honeywell-affiliated investors, whose proceeds fund a new A$50 million credit facility from Air T to the Rex group, and by amended and new loan facilities from the Commonwealth of Australia, which remains a secured creditor with about A$108 million outstanding and up to an additional A$60 million in undrawn funding for engine overhauls and operations. An intercreditor framework sets priority over aircraft and other collateral, mandates excess cash flow sweeps between Air T and the Commonwealth, and gives the Commonwealth step-in and equity acquisition rights if Air T-linked notes go unpaid, while new warrants in the acquisition vehicle align certain executives with the performance – and risk – of the Rex financing structure. Air T and Rex’s management present the transaction as the resolution of a financially challenging period and the start of a “revitalised” phase aimed at restoring Rex’s fleet from about 31 to 45 aircraft over two years and reinforcing regional air connectivity across Australia, with long-dated facilities and shared governance rights positioning both Air T and the Australian government as key long-term stakeholders in the airline’s future.

The most recent analyst rating on (AIRT) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Air T stock, see the AIRT Stock Forecast page.

Spark’s Take on AIRT Stock

According to Spark, TipRanks’ AI Analyst, AIRT is a Neutral.

Air T’s overall stock score is primarily impacted by its weak financial performance and valuation, reflecting significant challenges in profitability and high leverage. However, recent corporate events provide a positive outlook, potentially enhancing operational flexibility and growth prospects. Technical analysis indicates a bearish trend, further weighing on the score.

To see Spark’s full report on AIRT stock, click here.

More about Air T

Air T, Inc., founded in 1980 and listed on NASDAQ, operates as a diversified portfolio of aviation-related businesses and financial assets. Its core segments span overnight air cargo, ground support equipment sales, commercial jet engines and parts, and other corporate activities, with a strategic focus on expanding, strengthening and diversifying after-tax cash flow per share through investments in essential aviation and adjacent industries. Regional Express Holdings Limited (Rex), established in 2002, is Australia’s largest independent regional airline with the world’s largest Saab 340 fleet, serving regional and remote communities nationwide and operating over 1,000 weekly flights, alongside pilot training academies and a propeller maintenance facility.

Average Trading Volume: 1,491

Technical Sentiment Signal: Sell

Current Market Cap: $54.57M

See more data about AIRT stock on TipRanks’ Stock Analysis page.