Air T – which provides overnight express services for FedEx among its portfolio of interests – has reported an overall net loss attributable to stockholders of $2.7 million in the third quarter (Q3) ending 31 December 2018.
Revenues for the air cargo segment declined one per cent to $17.9 million in Q3 2019 compared to $18 million in Q3 2018. Operating income for this segment reached $0.1 million, a decrease of $0.9 million when compared to the operating income of Q3 2018.
Air T said this decrease is due primarily to “our absorption of higher operating costs (mainly increased flight crew costs to meet operational requirements); and higher general and administrative staff needed to meet higher-frequency requirements”.
Overall company revenues reached $63.6 million for Q3 2018, a 43 per cent increase over the prior year comparable quarter.
Operating income of $1.5 million, an increase of $0.9 million from the prior year comparable quarter’s operating income of $0.6 million.
Non-operating expense of $3.6 million, an increase of $2.3 million over the prior year comparable quarter. Net loss attributable to Air T stockholders was $2.7 million as compared to net loss of $0.7 million in Q3 2018.
Air T president and chief executive officer, Nick Swenson said: “While segment operating performance varied significantly, our consolidated third quarter operating results grew nicely from the prior year third quarter, as well as quarter over quarter.”
He said growth was driven by the commercial jet engines and parts segment, in contrast to the air cargo services segment.
“In contrast, Air Cargo Services reported significantly lower operating results in the period. Higher direct and indirect flight crew expenses have significantly eroded our margins. We are pursuing appropriate accommodation and remain hopeful that Air Cargo will deliver acceptable profit levels – on time,” he added.
As of 31 March, 2017, Air T’s air cargo segment had 80 aircraft under the dry-lease agreements with FedEx. Mountain Air Cargo and CSA Air are Air T subsidiaries.