Air T's operating income falls to US$1.2m in quarter ending June 30

AIR T, Inc (AIRT) has posted an operating income of US$1

19 August 2019 - 19:00
AIR T, Inc (AIRT) has posted an operating income of US$1.2 million for its fiscal quarter ended June 30. The result represented a decline of $1.4 million compared to the same period a year earlier.

Net income attributable to shareholders was $1.8 million, down from $2.8 million a year earlier.

For the fiscal quarter under review, revenues totalled $55.7 million, down eight per cent year on year.

CEO Nick Swenson said the results 'reflect unusual year-over-year segment variances, each of which is driven by independent factors.' He said the company believes it is on 'target to meet or exceed its consolidated fiscal 2020 plan'.

A breakdown of its business results show that its commercial jet engines and parts segment recorded revenues of $16.3 million in the first quarter of its fiscal year 2020, a decrease of $11 million over the same period of fiscal 2019. Last year Contrail experienced record levels of sales and income in the first quarter, selling four whole engines for $17.4 million.

This segment leases commercial jet engines and aircraft; buys, sells and trades in surplus and aftermarket commercial jet engines, engine parts and airframes.

The overnight air cargo segment, which provides air express delivery services mainly for FedEx, achieved four per cent higher revenues at $18.3 million in Q1 FY2020. Operating income stood at zero, after falling by $1.0 million when compared to the operating income of Q1 2019. This decrease is due to extra pilot incentives and bonus expenses as a result of the nationwide pilot shortage.

The aviation ground support maintenance services segment, which provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers across the US, suffered a Q1 2020 revenue decline of six per cent year on year to total $8.5 million. The decrease is due to a reduction of business in the southeast region.

Operating income for this segment was $0.2 million for the quarter under review, compared to a loss of $0.1 million in the same quarter of the prior year, due primarily to operational improvements across the system.

The aviation ground support equipment segment that manufactures and provides mobile de-icers and other specialised equipment products to passenger and cargo airlines, airports, the military and industrial customers, recorded revenues of $12.3 million for the fiscal quarter ended June 30, 2019. This represents an increase of 92 per cent year on year. Operating income for this segment was $1.3 million, up $1 million.

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