Revenues in Air T’s overnight air cargo segment rose by five per cent to $72.8 million in the fiscal year ending 31 March, 2018 compared to $69.6 million it posted in the prior year.
The segment includes Mountain Air Cargo and CSA Air, which are both North American feeder airlines under contract with FedEx.
Air T said the increase was primarily due to higher administrative fees from FedEx as a result of an incremental aircraft lease arrangement and to cover certain operational costs, principally flight crew costs.
Segment maintenance revenues also grew due to increased scheduled aircraft maintenance in fiscal 2018 compared to the prior year.
Overall revenues at Air T rose to $194.5 million for the fiscal year ending 31 March, 2018, a 31 per cent increase over the prior year. Operating income rose to $4.2 million, as compared to prior-year operating loss of $3.1 million.
Air T chairman and chief executive officer, Nick Swenson said: “Our fiscal 2018 operating results reflect the outstanding performance of our business leaders and employees, as well as new acquisitions.
“Together they delivered top line growth coupled with improvements to bottom line performance, particularly after adjusting for audit expenses and investments in our corporate infrastructure.
“We are looking forward to steady growth in fiscal 2019. We continuously evaluate acquisitions and investments that will add to our portfolio of powerful businesses. Our investments must represent claims on growing free cash flows or discounts to intrinsic value.
“Yet people understand that enterprising and dynamic individuals and teams are at the heart of our corporate strategy. A large part of our job is making room for excellent leaders and applying resources as they move their organizations forward. The more we make sound decisions at the relevant level, the more we will continue to do better.”