Air T Q2 Revenue Jumps 129% to $146.9M on Rex Deal

Air T Inc. reported second-quarter fiscal 2027 revenue of $146.9 million for the three months ended September 30, 2026, the company said in its quarterly update, up from $64.2 million in the same period a year earlier. Adjusted EBITDA fell to $4.4 million from $7.9 million. The Nasdaq-listed holding company, which operates six aviation-linked segments across 21 companies, attributed the revenue jump largely to its December 2025 acquisition of Australian regional carrier Regional Express Holdings.

Context — why Air T's Q2 FY27 update matters now

The quarter is the first full reporting period in which Air T consolidates Regional Express, the Saab 340 operator it bought in December 2025 through an Australian administration process. That deal reshaped the company's segment mix: revenue more than doubled, but the acquired airline arrived with a cost base the company is still working to stabilise.

Air T's own historical table shows how far the business has travelled. Revenue stood at $60.7 million in 2Q23, $79.0 million in 2Q24, $81.2 million in 2Q25 and $64.2 million in 2Q26 before this quarter's $146.9 million. On a last-twelve-month basis, revenue reached $454.5 million against $279.2 million a year earlier.

The company's twelve-year summary, running from March 2014 to September 2026, shows businesses growing from 3 to 21, total assets from $37.2 million to $483.0 million, and book value from $27.4 million to $47.9 million. Total debt stands at $272.4 million, of which $89.2 million is holdco recourse debt.

The catalyst chain is straightforward. Air T closed Rex, folded it into a new Regional Airline segment, and now faces the task of returning aircraft to service and stabilising an operation the company itself describes as subject to extensive regulation. Management flagged higher unscheduled engine removals and lower third-party MRO throughput as drags on aircraft availability.

Data — what Air T's Q2 FY27 numbers show

Segment detail explains where the revenue came from and where the profit went. Regional Airline contributed $56.8 million of revenue and negative $0.9 million of Adjusted EBITDA, with $9.4 million of depreciation and amortisation and fuel as the primary driver of the loss. Overnight Air Cargo, the FedEx feeder operation, posted $34.5 million of revenue and $2.6 million of Adjusted EBITDA, up from $1.8 million a year earlier.

Commercial Aircraft, Engines and Parts generated $28.5 million of revenue and $1.5 million of Adjusted EBITDA, down $5.4 million year over year. The company attributed the decline to a $7.0 million one-time gain on an aircraft sale booked in the prior-year quarter, partly offset by improvement at AirCo and LGSS.

Segment	2Q27 Revenue	2Q27 Adj. EBITDA
Regional Airline	$56.8M	($0.9M)
Overnight Air Cargo	$34.5M	$2.6M
Commercial Aircraft, Engines, Parts	$28.5M	$1.5M
Ground Support Equipment	$18.9M	$2.7M
Aviation Leasing & Asset Mgmt	$7.8M	$1.3M
Digital Solutions	$2.6M	$0.1M

Ground Support Equipment revenue nearly doubled to $18.9 million from $9.6 million, with Adjusted EBITDA of $2.7 million, which the company tied to more deicing trucks sold to the U.S. Military. Backlog was $11.6 million at September 30, 2026, versus $12.9 million a year earlier.

Analysis — what Air T's results mean for aviation and small-cap investors

The headline revenue number is an acquisition artefact as much as an operating result. Stripping out Regional Airline, the legacy segments produced roughly $90 million of revenue and about $5.3 million of Adjusted EBITDA, against $64.2 million and $7.9 million a year earlier. The profit decline sits almost entirely in Commercial Aircraft, Engines and Parts, where the prior-year $7.0 million aircraft-sale gain flattered the comparison.

Aviation Leasing and Asset Management, formed in June 2026 from Crestone Air Partners and Arena, contributed $7.8 million of revenue and $1.3 million of Adjusted EBITDA. That figure absorbed $3.3 million of unfavourable earnout remeasurement, $2.2 million of D&A and $0.5 million of integration costs. The company also restructured Crestone in June 2026, buying 10% common interests from Mill Road investors and reducing its remaining Crestone Asset Management stake to approximately 29%.

The counter-argument is use. Total debt of $272.4 million against $47.9 million of book value leaves little cushion if Rex's operating losses persist. The company lists its ability to meet debt service covenants and refinance obligations among its stated risks.

Positioning reflects that tension. Air T trades at a $75.7 million market capitalisation against $325.9 million of enterprise value, a spread that signals the equity is priced as an option on management's ability to convert the Rex acquisition into cash flow. Investors holding the stock are effectively long a turnaround, not a steady compounder.

Outlook — what to watch next for Air T

The company did not disclose a date for its next quarterly filing or a formal earnings call. The next scheduled data point is the fiscal third-quarter update, covering the three months ending December 31, 2026.

Three items matter most. First, whether Regional Airline narrows its Adjusted EBITDA loss as aircraft return to service, since the company cited unscheduled engine removals as a specific cause of the shortfall. Second, Ground Support Equipment backlog, which fell to $11.6 million from $12.9 million and depends on deicing demand through the Northern Hemisphere winter. Third, any update on the Rex purchase price allocation, which the company warned may be revised during the measurement period and could materially change reported results.

On the balance sheet, watch total debt against the $89.2 million holdco recourse figure. A further increase would sharpen the covenant question the company itself raised in its risk disclosures.

Frequently Asked Questions

What does Air T's Q2 FY27 revenue jump mean for retail investors?

Revenue rose to $146.9 million from $64.2 million because Air T consolidated Regional Express for a full quarter after buying it in December 2025. That is growth by acquisition, not organic expansion. Adjusted EBITDA fell to $4.4 million from $7.9 million, so the larger revenue base did not translate into more operating profit. Retail investors should read the segment table, not the top line.

Why did Air T's Adjusted EBITDA fall while revenue more than doubled?

Two forces combined. Regional Airline lost $0.9 million of Adjusted EBITDA, dragged by $9.4 million of depreciation and fuel costs, plus lower aircraft availability from unscheduled engine removals. Separately, Commercial Aircraft, Engines and Parts dropped $5.4 million year over year because the prior-year quarter included a $7.0 million one-time aircraft sale gain that did not repeat.

What happens next for Air T and the Rex acquisition?

Air T must stabilise Regional Express operations while managing $272.4 million of total debt. The company flagged that the Rex purchase price allocation may still be revised during the measurement period, which could change reported results. It also cited compliance with Rex Regional Commitments and retention of regulated route contracts as risks. The next update covers the quarter ending December 31, 2026.

Bottom Line

Air T bought revenue with Rex, but the profit test now sits squarely on Regional Airline's loss narrowing.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.