Air T reports Q3 adjusted EBITDA $7.9M vs. $5.0M last year

Reports Q3 revenue $64.2M, down 21% y/y. Company Chairman and CEO Nick Swenson commented: “During the quarter, Contrail has reached the significant milestone of eliminating all of its bank debt and holding $6.7 million of cash and cash equivalents at September 30th. Joe and Miriam have done an outstanding job of deleveraging Contrail from the peak of $74.9 million of bank debt during COVID. We are grateful for their outstanding leadership of the Contrail business over many years. In addition, we believe Contrail is well positioned if the secondary market for end of life and low green time engines starts to soften. Earlier this year, the Air T (AIRT) HoldCo team started to engage with various parties about Rex Regional Airlines – the largest regional airline in Australia – which has been in voluntary administration since 2024. If courts approve the transaction, then we expect to close on the acquisition of Rex Regional sometime in December. This closing will mark the end of the beginning on a long journey that we are calling ‘the return to classic Rex.’ Expect to hear more from us as the process unfolds.”