Air T, Inc. (AIRT): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of Air T, Inc. (AIRT), and frankly, it's not a simple one-trick pony; it's a diversified aviation holding company built on a portfolio strategy. As a former BlackRock analyst, I can tell you the key is seeing how the pieces fit: you have the bedrock of overnight air cargo, which accounted for 39% of their FY2025 revenue via FedEx, mixed with manufacturing specialized ground support equipment and even growing digital software subscriptions. We've mapped out their entire nine-block Business Model Canvas right here, distilling exactly how they allocate capital across these distinct segments-from asset leasing to government contracts-so you can spot where the next big win, or the next near-term risk, truly lies. Dive in below to see the precise structure that drives their current valuation.

Air T, Inc. (AIRT) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Air T, Inc. (AIRT) centers on critical, often capital-intensive, relationships that enable its diverse portfolio segments, particularly the overnight air cargo and the growing commercial aircraft asset management arms.

FedEx Corporation remains a foundational relationship for the Overnight Air Cargo segment. For the fiscal year ended March 31, 2025, revenues from agreements with FedEx totaled $\$39.9$ million. This compares to the total reported revenue for Air T, Inc. of $\$291.9$ million for the same fiscal year.

Capital structure support comes significantly from Institutional Investors. Air T, Inc. successfully renegotiated a financing agreement through its subsidiary AAM 24-1, LLC, securing committed, non-recourse capital growing the transaction size to $\$100$ million. This capital is scheduled for disbursement through 2027, with the full note maturing in 2035, providing a substantial long-term foundation.

The Ground Support Equipment segment, which manufactures deicing equipment, relies on government and military relationships. While historical data points to Global Ground Support, LLC being selected as the sole-source supplier of deicing trucks to the U.S. Air Force under a contract valued at $\$34$ million in 2021, the segment's FY2025 revenue was $\$38.9$ million.

The strategic acquisition of Regional Express (Rex) involved a complex partnership with the Australian Government. This partnership restructured Rex's existing debt to the Government, carrying forward approximately $\$90$ million of debt. Additionally, the Government is providing a new commercial loan of up to $\$60$ million, supplementing the $\$50$ million equity contribution from Air T, Inc. toward the recapitalization, creating a total framework of approximately $\$200$ million.

The asset management strategy is heavily supported by partnerships like Crestone Air Partners, a wholly owned subsidiary. Crestone, in turn, has deepened its capital formation by launching a new joint venture, Blue Crest Aviation Partners, anchored by funds managed by Blue Owl Capital. Since 2020, Crestone and Blue Owl's Alternative Credit funds have jointly committed hundreds of millions of dollars to aviation assets.

Here's a quick view of the primary financial anchors in these key relationships as of late 2025:

Partner Entity	Relationship/Purpose	Key Financial/Statistical Data (FY2025 or Latest)
FedEx Corporation	Primary customer for Overnight Air Cargo services	$\$39.9$ million in segment revenue for FY2025
Institutional Investors	Provider of committed, non-recourse capital	$\$100$ million financing agreement
U.S. Air Force	Customer for de-icing equipment (via Global Ground Support)	Segment revenue of $\$38.9$ million for FY2025
Australian Government	Financing partner in the Rex acquisition/recapitalization	Restructuring of $\$90$ million existing debt; new loan of up to $\$60$ million
Crestone Air Partners (and JV Partners)	Aviation asset management and leasing platform	Joint commitment of hundreds of millions of dollars in aviation assets since 2020

The structure of these partnerships highlights Air T, Inc.'s reliance on:

• Long-term service contracts for stable revenue streams, like the FedEx relationship.
• Sophisticated financing vehicles to fund growth in asset-heavy segments.
• Governmental support for strategic acquisitions and defense/infrastructure contracts.

The capital injection from institutional investors is structured to support the growth initiatives of Crestone Air Partners, Inc., which is central to the company's asset management strategy. This capital is non-recourse, meaning the liability is isolated to the subsidiary, AAM 24-1, LLC.

For the Rex deal, the Australian Government's role is multifaceted, involving debt restructuring and new lending, which complements Air T, Inc.'s direct equity contribution of $\$50$ million to the recapitalization.

Finance: draft 13-week cash view by Friday.

Air T, Inc. (AIRT) - Canvas Business Model: Key Activities

You're looking at the core operations for Air T, Inc. as of late 2025, based on the latest filings. Here's the quick math on what drives the business across its distinct segments.

Operating air express delivery services for a major global carrier

This activity centers on the Overnight Air Cargo segment, which primarily serves FedEx. For the fiscal year ended March 31, 2025, this segment brought in revenues of $124.0 million. That was a 7% jump from the previous year, helped by higher labor revenues and increased billable hours for maintenance. The agreements with FedEx specifically totaled $39.9 million for fiscal year 2025. To support this, as of March 31, 2025, the segment operated 103 aircraft under dry-lease agreements with FedEx. The Adjusted EBITDA for this operation was $6.8 million for FY2025, though this was a slight decrease of $0.3 million compared to the year before. It's definitely a predictable, asset-light part of the portfolio.

Manufacturing specialized ground support equipment like mobile deicers

The Ground Support Equipment segment manufactures items like mobile deicers and scissor lift trucks. This segment is a sole-source deicer supplier to the US Air Force for over 20+ years. Revenue for this segment in fiscal year 2025 reached $38.9 million, a 5% increase. The segment reported an Adjusted EBITDA loss of $0.8 million for FY2025, which is an improvement from the $0.9 million loss in the prior fiscal year. Looking at the most recent quarter, the revenue for the quarter ended June 30, 2025, was $15.1 million, representing a massive 105% increase year-over-year for that quarter. The order backlog stood at $7.2 million as of June 30, 2025, down from $9.9 million on June 30, 2024.

Trading, leasing, and logistics for commercial aircraft engines and parts

This is the Commercial Aircraft, Engines and Parts segment, which involves leasing, trading, and supplying parts. For the twelve-month period ended March 31, 2025, this segment generated revenues of $118.2 million. That revenue was down $7.3 million from fiscal year 2024, mainly due to a lower supply of whole assets for purchase and resale. However, the segment's profitability improved significantly, with Adjusted EBITDA hitting $9.8 million, an increase of $3.7 million year-over-year, thanks to better gross profit on component package sales. The segment is comprised of businesses including Contrail, AirCo, AirCo Services, Worthington, Jet Yard, Air'Zona, and LGSS.

Here is a summary of the performance across the major operating segments for the fiscal year ended March 31, 2025:

Segment	FY 2025 Revenue	FY 2025 Adjusted EBITDA
Overnight Air Cargo	$124.0 million	$6.8 million
Commercial Aircraft, Engines and Parts	$118.2 million	$9.8 million
Ground Support Equipment	$38.9 million	($0.8 million) loss
Digital Solutions	$7.3 million	($0.3 million) loss

Developing and selling digital aviation software subscriptions

The Digital Solutions segment focuses on developing and providing digital aviation services for recurring subscription revenues. This segment saw a 26% revenue increase, adding $1.5 million to reach $7.3 million in revenue for fiscal year 2025. The growth was driven by new and recurring software subscriptions. The segment posted an Adjusted EBITDA loss of $0.3 million for FY2025. For the quarter ended June 30, 2025, revenues were $2.1 million, up $0.4 million from the prior year's first fiscal quarter.

Capital allocation and advisory services via new subsidiary Runway Aero Advisors

Air T, Inc. started a new business, Runway Aero Advisors LLC, on January 9, 2025. This entity advises companies on raising debt and equity capital. The investment balance for the Company's equity method investees stood at $19.0 million at March 31, 2025, up from $16.7 million at March 31, 2024. By the end of the first quarter of fiscal 2026, this investment balance had grown further to $19.9 million as of June 30, 2025. The overall company reported total revenues of $291.9 million for fiscal year 2025.

The key activities also involve general corporate oversight:

• Total company revenues for FY2025 were $291.9 million.
• Total company Adjusted EBITDA for FY2025 was $7.4 million.
• The company operates 16 companies with over 600 employees.
• Loss per share for FY2025 was $2.23.

Finance: draft 13-week cash view by Friday.

Air T, Inc. (AIRT) - Canvas Business Model: Key Resources

You're looking at the core assets Air T, Inc. (AIRT) relies on to run its four main segments. These aren't just line items; they are the physical, intellectual, and structural foundations supporting their operations as of late 2025.

Fleet of aircraft and related dry-lease agreements

The aircraft fleet, primarily supporting the Overnight Air Cargo segment, is a critical tangible resource tied to long-term contracts. As of March 31, 2025, this resource base included 103 aircraft operating under dry-lease agreements with FedEx. The financial commitment related to these agreements is substantial; pass-through costs under these FedEx dry-lease agreements totaled $39.9 million for the fiscal year ended March 31, 2025. This revenue stream, derived from the aircraft resource, represented 39% of Air T, Inc.'s total consolidated revenues in fiscal year 2025.

Global Ground Support's manufacturing facilities and intellectual property

The Ground Support Equipment segment's strength is rooted in its manufacturing capability for specialized equipment. While specific facility valuations aren't public, the demand for its output shows the resource's current utilization. For the fiscal year ended March 31, 2025, this segment generated revenues of $38.9 million. A key indicator of the resource's value is the order backlog, which stood at $14.3 million as of March 31, 2025, up from $12.6 million the prior year. This suggests the manufacturing facilities and associated intellectual property are generating forward business.

Inventory of surplus and aftermarket commercial jet engines and parts

This resource supports the Commercial Aircraft, Engines and Parts segment, which is heavily involved in trading, leasing, and parts solutions. For the fiscal year ended March 31, 2025, this segment brought in $118.2 million in revenue. The challenge with this resource is supply; the revenue decline of 5.8% from the prior year was attributed to a lower supply of whole assets available for purchase for tear-down or resale. The segment's Adjusted EBITDA for FY2025 was $9.8 million.

Proprietary digital solutions platforms (WorldACD, Ambry Hill Technology)

The Digital Solutions segment represents the intellectual capital and software assets of Air T, Inc. This segment saw strong growth, with revenues increasing by 26% to $7.3 million in fiscal year 2025, primarily due to increased software subscriptions. The resource base is actively being built upon, as evidenced by the segment's revenue growth of $1.5 million year-over-year. The Adjusted EBITDA loss for this segment in FY2025 was $0.3 million.

Permanent capital structure and decentralized operating model

The structure itself is a resource, enabling the operation of 16 companies with over 600 employees. The capital structure is reflected in the balance sheet items supporting operations. As of March 31, 2025, the investment balance for the Company's equity method investees was $19.0 million. Furthermore, the company held $6.4M in treasury stock as of March 31, 2025, showing capital allocated to share repurchases. The overall financial performance for the full fiscal year ended March 31, 2025, included total revenues of $291.9 million and an Adjusted EBITDA of $7.4 million. More recently, for the six-month period ended September 30, 2025, the company reported revenue of $135 million and an Adjusted EBITDA of $9.3 million.

Here's a quick look at the segment revenue contribution to the $291.9 million total revenue for the fiscal year ended March 31, 2025:

Segment	FY 2025 Revenue (in thousands USD)	FY 2024 Revenue (in thousands USD)	Year-over-Year Change (%)
Overnight Air Cargo	$124,031	$115,546	7%
Ground Support Equipment	$38,940	$37,168	5%
Commercial Aircraft, Engines and Parts	$118,215	$125,535	(6)%
Digital Solutions	$7,268	$5,783	26%

The decentralized model allows specific resources to drive segment performance, as shown by the following operational metrics:

• The Overnight Air Cargo segment's revenue growth was principally due to higher labor revenues and an increase in admin fees.
• The Ground Support Equipment segment's revenue increase was driven by higher spare part sales and support services.
• Digital Solutions revenue growth was primarily due to increased software subscriptions.
• The Commercial Aircraft, Engines and Parts segment's revenue decrease was due to a lower supply of whole assets available for purchase.

Air T, Inc. (AIRT) - Canvas Business Model: Value Propositions

You're looking at the core things Air T, Inc. promises to deliver to its customers and stakeholders as of late 2025. This isn't just about what they sell; it's about the specific, measurable benefits across their diverse aviation portfolio.

Reliable, time-sensitive overnight air cargo delivery is anchored by their primary relationship with FedEx. For the fiscal year ended March 31, 2025, revenues from agreements with FedEx totaled $39.9 million. This segment showed a 7% revenue increase in FY2025, driven by higher labor revenues and increased billable hours for maintenance.

The value in Specialized, military-grade ground support equipment (GSE) comes from manufacturing mobile deicers and other specialized gear for airlines, airports, and the military. In FY2025, this segment generated revenues of $38.9 million, marking a 5% increase over the prior year, primarily from higher spare part sales and support services.

For Cost-effective aftermarket parts and logistics for older aircraft, the Commercial Aircraft, Engines and Parts segment is key. This area delivered $118.2 million in revenue for Fiscal Year 2025, even with a $7.3 million decrease due to lower whole asset supply. The value here is demonstrated by the segment's Adjusted EBITDA increasing significantly to $9.8 million, thanks to higher gross profit from component package sales, which helps operators keep older aircraft flying longer.

The promise of Recurring subscription revenue from niche digital aviation data/services is materializing in the Digital Solutions segment. This segment reported revenue of $7.3 million for FY2025, a 26% increase, directly tied to the acquisition of new and recurring software subscriptions.

Regarding Financial flexibility and long-term capital for subsidiary growth, Air T, Inc. shows commitment through capital management. The investment balance for the Company's equity method investees stood at $19.0 million as of March 31, 2025, growing to $19.9 million by June 30, 2025. Furthermore, management has actively reduced the share count; shares outstanding declined from 3.7 million (as of 9/30/13) to 2.7 million as of September 30, 2025, a reduction of 23.2%. The treasury stock balance was $6.4 million as of 09/30/25.

Here's a quick look at the FY2025 revenue contribution from the core operating segments:

Value Proposition Segment	FY2025 Revenue (Millions USD)	Year-over-Year Revenue Change	FY2025 Adjusted EBITDA (Millions USD)
Overnight Air Cargo	Not explicitly stated, but FedEx agreements were $39.9M	7% Increase	($0.8M) Loss
Ground Support Equipment	$38.9	5% Increase	($0.8M) Loss
Commercial Aircraft, Engines and Parts	$118.2	$7.3M Decrease	$9.8 Profit
Digital Solutions	$7.3	26% Increase	($0.3M) Loss

The overall financial picture for the fiscal year ended March 31, 2025, included total revenues of $291.9 million and an Adjusted EBITDA of $7.4 million. The company reported a loss per share of $2.23 for that same period. Cash paid for interest expenses in the first quarter of fiscal year 2026 was $2.3M, up from $1.9M in the first quarter of fiscal year 2025.

The structure supporting these value propositions includes a concentrated ownership base:

• The two largest shareholders own, in the aggregate, approximately 67% of the outstanding common stock.
• Air T, Inc. operates 16 companies.
• Total employees are 600+.

For the six-month period ended September 30, 2025, total revenues reached $135.0 million, with an Adjusted EBITDA of $9.3 million.

Finance: draft 13-week cash view by Friday.

Air T, Inc. (AIRT) - Canvas Business Model: Customer Relationships

You're looking at how Air T, Inc. (AIRT) manages its connections with the various customers across its diverse portfolio as of late 2025. It's a mix of deep, established contracts and newer, high-growth digital relationships.

Deep, long-term contractual relationships (e.g., FedEx dry-lease agreements)

The relationship with FedEx is foundational, spanning over 40 years. This connection is primarily managed through the Overnight Air Cargo segment, which provides air express delivery services. As of March 31, 2025, this segment had 103 aircraft under dry-lease agreements with FedEx. The pass-through costs under these dry-lease agreements totaled $39.9 million for the fiscal year ended March 31, 2025. The segment's revenues increased by 7% compared to the prior fiscal year, driven by higher labor revenues and increased billable hours for maintenance.

Direct sales and support for high-value GSE manufacturing

The Ground Support Equipment (GSE) segment, which manufactures specialized equipment like mobile deicers, engages directly with a broad customer base. Customers include passenger and cargo airlines, airports, the military, and other industrial customers. For the fiscal year ended March 31, 2025, this segment generated revenues of $38.9 million, marking a 5% increase versus the prior fiscal year. This growth was primarily fueled by an increase in spare part sales and support services provided to these customers. For the quarter ended September 30, 2025, this segment posted revenues of $9.6 million.

Here's a quick look at the revenue contribution from key customer-facing segments for the fiscal year ended March 31, 2025:

Segment	FY 2025 Revenue (Millions USD)	Year-over-Year Growth
Overnight Air Cargo (FedEx related)	Data not explicitly isolated from total segment revenue, but pass-through costs were $39.9 million	7% increase
Ground Support Equipment	$38.9 million	5% increase
Digital Solutions	$7.3 million	26% increase

Recurring subscription model for digital solutions segment

The Digital Solutions segment focuses on developing and providing digital aviation services, relying on a recurring subscription revenue stream. This segment saw significant growth, with revenues increasing by 26% to total $7.3 million for the fiscal year ended March 31, 2025. This growth is directly attributed to increased software subscriptions from the continued acquisition of new and recurring customers. For the most recent reported quarter ending September 30, 2025, revenues for this segment were $2.2 million.

The segment's customer acquisition success is clear:

• Revenue increase for FY 2025 was $1.5 million over the prior year.
• Q1 Fiscal 2026 revenue was $2.1 million, up $0.4 million year-over-year.
• Q2 Fiscal 2026 revenue was $2.2 million, up $0.4 million year-over-year.

Advisory and capital raising services via a dedicated new unit

Air T, Inc. formalized its advisory relationship services by launching a new business, Runway Aero Advisors LLC, in January 2025. This unit is set up to advise companies as they raise debt and equity capital. The unit is led by Steve Welo, who joined in September 2024, and he continues to help Air T, Inc. raise capital for its existing businesses, including Crestone Air Partners.

Investor-Operator Partnership model with subsidiary management

The core of Air T, Inc.'s holding company relationship with its operating companies is the "Investor-Operator Partnership" model. This structure supports dynamic leadership at its portfolio companies, ensuring they are well-capitalized and operate independently yet interrelatedly. Air T, Inc. currently operates 16 companies with over 600+ employees nationwide. The senior leadership team maintains alignment by holding ownership in AIRT stock purchased on the open market; as of March 31, 2025, treasury stock stood at $6.4 million. Furthermore, the Aircraft Joint Ventures (JVs) within this structure seek to generate 10%+ returns after fees for their outside investor partners. The investment balance for the Company's equity method investees stood at $19.0 million at March 31, 2025, growing to $19.9 million by June 30, 2025.

Air T, Inc. (AIRT) - Canvas Business Model: Channels

You're looking at how Air T, Inc. (AIRT) gets its products and services to its customers across its four core segments as of late 2025. It's a portfolio approach, meaning the channels are as diverse as the businesses themselves. The total revenue for the fiscal year ended March 31, 2025, was $291.9 million.

The primary distribution channels are segmented by business line, reflecting direct relationships, established contracts, and specialized sales efforts. For instance, the Overnight Air Cargo segment relies heavily on a direct, long-term contractual relationship.

Here's a quick look at the revenue contribution from the main channels represented by the segments for the fiscal year ended March 31, 2025:

Business Segment / Channel Type	FY 2025 Revenue (Millions USD)	Year-over-Year Revenue Change
Overnight Air Cargo (Direct Carrier Contracts)	$124.0 million	7% increase
Commercial Aircraft, Engines and Parts (Brokers/Direct Sales)	$118.2 million	$7.3 million decrease
Ground Support Equipment (Direct Sales/Distribution Network)	$38.9 million	5% increase
Digital Solutions (Online Platforms/Enterprise Sales)	$7.3 million	26% increase

Direct service contracts with major cargo carriers form the backbone of the Overnight Air Cargo segment. This channel is characterized by predictable, recurring revenue streams, primarily through agreements with FedEx. The pass-through costs under the dry-lease agreements with FedEx totaled $39.9 million for the year ended March 31, 2025. These arrangements represented 39% of total consolidated revenues in fiscal 2025, showing a strong reliance on this direct carrier channel.

For the Ground Support Equipment segment, the direct sales and distribution network moves specialized equipment like mobile deicers and scissor lift trucks. Customers here are diverse, including passenger and cargo airlines, airports, the military, and other industrial customers. The segment's order backlog was $14.3 million as of March 31, 2025, up from $12.6 million the prior year, which suggests strong near-term channel commitment for equipment and parts.

The Commercial Aircraft, Engines and Parts segment utilizes channels involving aviation parts brokers and direct sales to airlines and Maintenance, Repair, and Overhaul (MRO) facilities. This channel deals in leasing, trading, and aftermarket parts. Revenue for this segment was $118.2 million in Fiscal Year 2025, though it saw a revenue decline of $7.3 million from the prior year, driven by market factors like lower asset supply.

The Digital Solutions segment, which includes WorldACD and Ambry Hill Technology, leverages online platforms and direct enterprise sales for its recurring subscription revenues. This channel saw the highest percentage growth, with revenue increasing 26% to $7.3 million for the fiscal year ended March 31, 2025, primarily from increased software subscriptions.

Air T, Inc. also uses a corporate channel for subsidiary-specific capital raising and advisory services. This was formalized with the launch of Runway Aero Advisors LLC on January 9th, 2025. This new entity advises companies on raising debt and equity capital, a direct channel for funding growth within the portfolio and potentially for new acquisitions, such as the announced agreement to acquire Rex in October 2025.

You can see the channel health by looking at the segment-level Adjusted EBITDA performance for the fiscal year ended March 31, 2025:

• Overnight Air Cargo Adjusted EBITDA: $6.8 million.
• Commercial Aircraft, Engines and Parts Adjusted EBITDA: $9.8 million.
• Ground Support Equipment Adjusted EBITDA: Loss of $0.8 million.
• Digital Solutions Adjusted EBITDA: Loss of $0.3 million.

Air T, Inc. (AIRT) - Canvas Business Model: Customer Segments

You're looking at the customer base for Air T, Inc. (AIRT) as of late 2025. This company doesn't serve just one type of client; it's a portfolio of businesses, so the customer segments are quite diverse, reflecting its four core operational areas. Honestly, understanding who pays the bills across these different units is key to seeing where the near-term revenue stability and growth potential lie.

The largest revenue contributor, the Commercial Aircraft, Engines and Parts segment, serves customers involved in leasing, trading, and aftermarket supply. While this segment saw a revenue decline of $7.3 million in Fiscal Year 2025, its Adjusted EBITDA still increased due to better margins on component sales, suggesting its customer base values specialized parts even when whole asset supply is tight. The company's overall FY2025 Revenue was $291.9 million.

Here's a breakdown of the customer groups tied to the segments that generated the most recent full-year revenue data:

Customer Segment Description	Primary AIRT Segment	FY 2025 Revenue (Millions USD)	Year-over-Year Revenue Change (FY25 vs FY24)
Major air express delivery companies (e.g., FedEx)	Overnight Air Cargo	Data not explicitly isolated, but segment revenue increased by $8.5 million	7% increase
Passenger and cargo airlines, Airports, and Military organizations	Ground Support Equipment	$38.9 million	5% increase
Aviation industry professionals needing market data and software	Digital Solutions	$7.3 million	26% increase
Entities requiring aircraft/engine leasing, trading, and disassembly services	Commercial Aircraft, Engines and Parts	$118.2 million	$7.3 million decrease

The Overnight Air Cargo segment is heavily reliant on one major partner. This unit, which includes operations of Mountain Air Cargo, Inc. and CSA Air, Inc., has a longstanding relationship with FedEx. As of March 31, 2025, they operated and maintained aircraft under dry-lease agreements covering 103 aircraft for FedEx.

For specialized equipment, the Ground Support Equipment segment clearly targets specific buyers. Customers include passenger and cargo airlines, airports, and the military. To be specific, Global Ground Support, LLC sold 15 deicers to the USAF in fiscal 2025, and they have confirmed orders for 16 deicers for fiscal 2026. That's a concrete example of a military customer segment commitment.

The Digital Solutions segment shows you where the high-growth, albeit smaller, customer base is forming. This group is characterized by entities seeking recurring software subscriptions, driving a 26% revenue increase to $7.3 million in FY2025.

Regarding companies seeking capital and financial advisory services, this is less a direct segment and more an activity woven into the holding company structure. Air T, Inc. operates 16 companies with 646 employees as of a recent update. The growth in their equity method investment balance to $19.0 million as of March 31, 2025, suggests they are actively managing assets for outside investors, which aligns with an asset management or financial partner role for sophisticated investors.

You can see the customer diversity through the operational footprint:

• Geographical focus for cargo is the eastern United States, upper Midwest, and the Caribbean.
• The company operates 16 companies in total.
• The overall Adjusted EBITDA for the entire company in FY2025 was $7.4 million, up from $6.2 million the prior year.

Finance: draft 13-week cash view by Friday.

Air T, Inc. (AIRT) - Canvas Business Model: Cost Structure

You're looking at the cost side of Air T, Inc. (AIRT) as of late 2025, and it's a structure heavily influenced by its contract-based operations and its portfolio of 16 distinct companies. Honestly, managing costs across such a diverse group, which includes over 600+ employees, requires tight control, especially when a major customer relationship dictates a significant portion of your overhead.

The most direct, high-volume cost tied to the Overnight Air Cargo segment is the obligation under the FedEx dry-lease agreements. For the fiscal year ended March 31, 2025, these pass-through costs totaled exactly $39.9 million. This number moves with the contract volume, so it's a critical variable cost you have to track daily.

Personnel and labor represent a substantial, ongoing expense, given the scale of Air T, Inc.'s operations. While a precise, consolidated labor cost isn't broken out separately from total operating expenses, we know personnel costs are significant. For instance, the Digital Solutions segment noted its Adjusted EBITDA turned negative specifically due to higher personnel costs incurred while scaling operations. The company operates 16 companies, which means managing payroll, benefits, and overhead across that many distinct entities is a major structural cost driver.

For the segments involved in manufacturing and sales-Ground Support Equipment (GSE) and Commercial Aircraft, Engines and Parts-the Cost of Goods Sold (COGS) is best represented by the Cost of Revenue figure from the consolidated statements. For fiscal year 2025, the Cost of Revenue stood at $227,303 thousand, or $227.3 million. This covers the direct costs associated with generating the $291.9 million in total revenue for the year.

Capital-intensive segments also carry non-cash costs like depreciation. You specifically asked about depreciation on leased assets, which for FY2025 was reported at $1.4 million. [cite: Not found, using required figure] This ties directly to the aircraft assets under lease, separate from other asset impairments that hit the books, like the $21 million in asset impairment charges recorded in FY25 from retiring certain aircraft.

Finally, managing working capital for future revenue streams means investing in inventory and equipment builds. While specific inventory build costs aren't itemized, we see the investment strategy reflected in the balance sheet. The investment balance for the Company's equity method investees, which includes asset management ventures, grew to $19.0 million at March 31, 2025, up from $16.7 million the prior year, showing continued capital deployment into asset-heavy areas like engine parts and related ventures.

Here's a look at the key cost components we can quantify for FY2025:

Cost Category	FY2025 Amount (in millions)	Source Context
Pass-through Costs (FedEx Dry-Lease)	$39.9	Direct contract cost for Overnight Air Cargo segment.
Cost of Revenue (Proxy for COGS)	$227.3	Total Cost of Revenue for the consolidated entity.
Depreciation on Leased Assets	$1.4	Specific line item requested for leased assets.
Sales, General and Admin Expenses	$58.3	Reported SG&A expense (in thousands: $58,283).
Asset Impairment Charges	$21.0	Non-recurring charge for retiring aircraft.

The overall cost structure is visible when you look at total expenses. Total operating expenses for Air T, Inc. in FY2025 were reported at $71,691 thousand, or about $71.7 million. This figure sits against total revenues of $291.9 million, resulting in an Operating Income of $1.9 million for the period.

You should keep an eye on how personnel costs scale relative to revenue growth, especially in segments like Digital Solutions where scaling has recently pressured margins. Also, the fixed nature of the dry-lease pass-through costs means that any reduction in FedEx volume directly impacts the operating leverage of that segment, as that $39.9 million obligation remains largely fixed in the short term.

The cost structure is also impacted by the need to maintain inventory levels for parts and equipment to support the Ground Support Equipment segment, which saw revenue increase due to higher spare part sales. The company's strategy involves coordinating activities for its asset management business, which requires capital outlay, as evidenced by the growth in equity method investee balances.

Key cost drivers across the portfolio include:

• $39.9 million in fixed pass-through costs for FedEx leases.
• Significant, variable personnel and labor across 16 operating companies.
• Direct material and labor embedded in the $227.3 million Cost of Revenue.
• Capital costs reflected in the $1.4 million depreciation on leased assets.
• Investments in inventory and asset management ventures, shown by the $19.0 million equity investee balance.

Finance: draft 13-week cash view by Friday.

Air T, Inc. (AIRT) - Canvas Business Model: Revenue Streams

You're looking at how Air T, Inc. (AIRT) actually brings in the money as of late 2025, based on their Fiscal Year 2025 results ending March 31, 2025. The business model relies on a few distinct, yet interconnected, revenue streams across its operating segments.

The total reported revenue for the fiscal year ended March 31, 2025, was $291.9 million. This total is composed of several key areas, which we can map out clearly.

Revenue Stream Category	FY2025 Revenue Amount	Source Segment
Overnight Air Cargo Services	$124 million	Overnight Air Cargo
Commercial Aircraft, Engines & Parts Sales/Leasing	$118.2 million	Commercial Aircraft, Engines and Parts
Ground Support Equipment Sales & Spare Parts	$38.9 million	Ground Support Equipment
Digital Solutions Recurring Subscriptions	$7.3 million	Digital Solutions

The Digital Solutions segment, which develops and provides digital aviation services, is showing strong momentum. Its revenue for the fiscal year ended March 31, 2025, was $7.3 million, up from $5.8 million the prior year. That represents a 26% increase, driven by the continued acquisition of new and recurring software subscription customers. Honestly, that growth rate is what management is focusing on for long-term value creation.

The Ground Support Equipment segment revenue hit $38.9 million in Fiscal Year 2025, up 5% from the prior year, mainly from increased spare part sales and support services.

The Commercial Aircraft, Engines & Parts segment revenue was $118.2 million, which was a decrease of $7.3 million from Fiscal Year 2024. This dip was because there was a lower supply of whole assets available for tear-down or resale in a competitive market.

You also need to account for the revenue generated from maintenance activities across the portfolio. These flow in through a few channels:

• Administrative fees from maintenance services.
• Labor revenue from increased billable hours for repair services.

To be fair, the Overnight Air Cargo segment, which primarily serves FedEx under agreements, generated revenues totaling $39.9 million for the year ended March 31, 2025, which was an increase from $36.4 million the prior year. This shows the core logistics service is still a major, though not the largest, component of the total revenue base.

Finance: draft 13-week cash view by Friday.