Sky Harbour Group Corporation (SKYH): Business Model Canvas [Dec-2025 Updated]

You're trying to map out how Sky Harbour Group Corporation (SKYH) actually makes money building those high-end private jet hangars, right? Honestly, it's a real estate play disguised as an aviation service, focusing on locking down prime airport land with long-term ground leases-they had 18 signed by October 2025. Their model hinges on outsourcing infrastructure investment for jet owners, generating primary income from 1-to-10-year exclusive leases, backed by a $200 million construction facility from J.P. Morgan. Below, I've broken down the nine blocks so you can see exactly how they plan to scale this capital-intensive, high-stickiness business.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Key Partnerships

You're hiring before product-market fit, so securing the right capital and land access partners is everything for Sky Harbour Group Corporation. Here's the breakdown of the key relationships underpinning the infrastructure build-out as of late 2025.

Financing and Capital Partners

Sky Harbour Group Corporation closed a $200 million tax-exempt warehouse drawdown committed bank facility with J.P. Morgan acting as the lender and administrative agent in September 2025. This facility, issued through the Public Finance Authority (Wisconsin), provides 65% leverage for eligible new hangar projects and has a five-year bullet maturity. The initial applicable floating interest rate was approximately 5.60%. Subject to credit approval, this facility has the option to be expanded to $300 million. As of September 30th, 2025, consolidated cash and US Treasuries totaled $47.9 million, alongside access to this $200 million facility.

The company also monetizes assets through Joint Venture (JV) partners. A binding Letter of Intent was executed for a JV at Miami Opa Locka Executive Airport.

The key financial terms of these major capital and monetization partnerships are laid out here:

Airport Authority Ground Leases

Access to land is secured through long-term ground leases with airport authorities. Sky Harbour Group Corporation has signed 18 ground leases to date. The portfolio average term for these leases is approximately 50 years, with some extending up to 75 years. For instance, the Long Beach Airport ground lease was approved for a 50-year term. As of June 30, 2025, the Weighted Average Remaining Lease Term for ground leases unimproved at commencement was 53.2 years.

The structure of these long-term land agreements includes:

• Number of ground leases signed: 18.
• Portfolio average ground lease term: 50-year.
• Longest ground lease term noted: 75 years.
• Weighted Average Remaining Lease Term (Unimproved): 53.2 years (as of 6/30/2025).
• Target for new ground leases in 2025: five.

Construction and Ancillary Service Partners

The rapid, standardized campus build-out relies on construction partners, with estimated construction costs around $300 per square foot. The company's projected rental revenue is $39 per square foot, supplemented by ancillary service revenue from fuel sales estimated at $5 to $6 per square foot.

Revenue figures related to campus operations and fuel sales for 2025 periods show the scale of ancillary service provision:

• Q1 2025 Rental Revenue: $4.5 million.
• Q1 2025 Fuel Revenue: $1.1 million.
• Q3 2025 Consolidated Revenue Growth (YoY): 78.2%.

The company is focused on generating revenue from its core rental agreements while using fuel sales as a supplementary income stream from its campus operations.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Key Activities

You're looking at the core engine of Sky Harbour Group Corporation's value creation-the physical execution of their real estate strategy. This is where the long-term assets are secured and built.

Securing long-term ground leases at key Tier 1 and executive airfields is the foundational activity. As of late 2025, Sky Harbour Group Corporation has secured land at 18 airports. These ground leases, which are classified as operating leases, have remaining terms ranging between 16 to 73 years. The company signed 18 ground leases, each averaging a 50-year term, with some extending up to 75 years. The long-term plan is to establish a presence at 50 airports.

The next activity is Standardized, high-quality hangar campus development and construction. Constructed assets and construction in progress reached over $308 million at the end of Q3 2025, marking an increase of $108 million year-over-year. Prototype hangar sizes have increased to 37,000 square feet, designed to accommodate up to five super-heavy business jets. Construction costs are estimated at $300 per square foot.

The core leasing activity involves Leasing hangars exclusively to home-based aircraft for 1-10 year terms. While the ground leases are long-term, the tenant hangar leases are shorter. Rental revenue is projected at $39 per square foot, with an additional $5 to $6 per square foot from fuel sales. The targeted stabilized yield on cost is in the mid-teens. The company targets a return on equity of approximately 30% when paired with leverage.

Managing and operating 9 operational hangar campuses as of late 2025 is the current scale of operations. As of October 2025, nine campuses are operational in Denver, Phoenix, and Dallas, with nine more in the pipeline. This follows the opening of new campuses in Dallas Addison (ADS) and Seattle Boeing Field (BFI) in Q2 2025. The company reiterated its guidance of reaching operating cash-flow breakeven on a consolidated run-rate basis by year-end 2025.

For cost control, Sky Harbour Group Corporation focuses on Internal construction management via Ascend Aviation Services to control costs. The company has intensified vertical integration, bringing general contracting in-house to enhance development speed and cost control. This vertical integration also includes manufacturing steel components in Texas to contribute to cost efficiency.

Here's a quick look at the operational scale and financial performance supporting these activities as of late 2025:

The execution of these activities is supported by specific financing milestones:

• Secured a $200 million facility with JPMorgan, expandable to $300 million.
• The municipal bond coupon rate on the first bond deal averages 4.18%.
• The company raised $250 million in equity and $166 million in long-term, tax-exempt debt.
• Consolidated cash and US Treasuries totaled $47.9 million as of September 30th, 2025.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Key Resources

You're looking at the hard assets and financial backing that let Sky Harbour Group Corporation (SKYH) execute its nationwide network strategy. These aren't just line items; they are the physical and financial scaffolding supporting every Home Base Operator (HBO) campus.

The foundation of the physical network is secured through long-term real estate commitments. As of late 2025, Sky Harbour Group Corporation has locked down significant airport real estate.

• Signed long-term ground leases: 18 as of October 2025.
• Average ground lease term: 50 years.
• Maximum ground lease term observed: Up to 75 years.

The value tied up in the physical infrastructure is substantial, reflecting the ongoing development pace across the portfolio. This includes both completed hangars and those actively under construction as of the third quarter of 2025.

The total value of these tangible assets is a key metric for understanding the scale of their physical footprint.

To fuel this physical expansion, Sky Harbour Group Corporation has secured significant, dedicated capital. The J.P. Morgan facility is designed specifically to bridge the gap between development and long-term bond financing.

This facility provides immediate, flexible capital for new projects. It's a critical component for maintaining development momentum.

• Committed J.P. Morgan construction debt facility: $200 million.
• Potential expansion of the facility: Up to $300 million, subject to credit approval.
• Financing structure includes capitalized monthly interest for the first 3 years.

The intellectual property underpinning the rapid build-out is another core resource. Sky Harbour Group Corporation uses proprietary, standardized designs to ensure consistency and speed across different airport sites. These designs are not abstract; they have concrete specifications.

Here's what that standardization looks like in physical terms for their prototype hangars:

• Prototype hangar size: 37,000 square feet.
• Capacity per prototype hangar: Accommodates up to five super-heavy business jets.

Finally, liquidity remains a key resource, showing the company's immediate financial flexibility as of the end of Q3 2025. This cash position, enhanced by the new debt facility, gives them runway.

You can see the immediate balance sheet strength here:

Finance: draft 13-week cash view by Friday.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Value Propositions

You're looking at the core offering that sets Sky Harbour Group Corporation apart from the traditional fixed-base operator (FBO) model. The value proposition here is control and exclusivity, which is a huge deal for owners of high-value assets.

Exclusive, dedicated private hangar home-basing, unlike shared FBO space.

Sky Harbour Group Corporation sells dedicated space, not shared ramp time. This means aircraft owners get their own private facility, which is a significant differentiator from the high-traffic, shared environment of a typical FBO. This control translates directly into better security and faster departure times. The company's tenant base reflects this premium focus, with clientele primarily being high-net-worth individuals, charter operators, and corporations.

High-end, fully serviced infrastructure for corporate and private jets.

The infrastructure itself is built to a high standard, designed to minimize aircraft downtime. The prototype hangar size has increased to accommodate larger fleets, now measuring 37,000 square feet, capable of sheltering up to five super-heavy business jets. The investment in this infrastructure is substantial, with construction costs estimated around $300 per square foot. When fully built out, a single campus is projected to feature about 200,000 square feet of hangar space.

The revenue capture from this high-end service is reflected in the projected rental rate of $39 per square foot, which is supplemented by an estimated $5 to $6 in fuel sales per square foot. As of Q3 2025, Sky Harbour Group Corporation reported consolidated revenues of $7.3 million, a 78% year-over-year increase, showing the market is responding to this premium offering.

Here's a quick look at the scale of the physical assets and financial backing supporting this value:

Long-term stability and security for aircraft home base (up to 10-year leases).

For the aircraft owner, the commitment is long-term security. While tenant lease terms are reported in the range of one to five years, with some extending to ten years, the underlying ground leases Sky Harbour Group Corporation secures from airports are much longer. These ground leases average a 50-year term, with some extending up to 75 years, providing the company with deep, long-term control over the real estate necessary to guarantee tenant stability.

Outsourcing of infrastructure investment for aircraft owners.

Sky Harbour Group Corporation handles the massive capital outlay required for building these facilities, allowing aircraft owners to avoid this burden. The company finances this growth through various means, including a $200 million facility with JPMorgan and strategic asset monetization. For example, a joint venture for a Miami Opa Locka Phase 2 hangar secured $30.75 million in upfront cash for a 75% stake, while Sky Harbour retained a 53-year lease for the hangar.

Network effect of a growing nationwide campus footprint (targeting 23 airports by YE25).

The value proposition is amplified by the network. The explicit goal is to reach 23 airport ground leases by the end of 2025. As of Q3 2025, management confirmed 19 airports were under operation or development. This growing footprint means that as the network expands, the utility for a customer with aircraft based across multiple regions increases, solidifying the 'nationwide network' promise. The company is less than $1 million away from achieving its run-rate operating cash flow breakeven target by year-end 2025, which supports the sustainability of this expansion.

• The company is formalizing pre-leasing as standard for all future developments.
• Re-leases at existing locations are fetching premiums of 20% to 30%.
• The company is exploring pilots for pre-leasing at Bradley International Airport (BDL) and Dulles International Airport (IAD).

Finance: draft 13-week cash view by Friday.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Customer Relationships

You're building a nationwide network of premium aviation infrastructure, so your customer relationships are the bedrock of your entire revenue model. For Sky Harbour Group Corporation (SKYH), this block is all about locking in high-value, long-term tenants who value dedicated service over transient stop-offs.

Dedicated, high-touch sales and relationship management for long-term tenants.

The core relationship is with the 'home based' aircraft owner, meaning they are not just stopping by; they are establishing their primary operational base at one of your campuses. This necessitates a high-touch approach, which is reflected in the nature of the revenue. The majority of Sky Harbour Group Corporation's revenue is generated from rents and fees earned pursuant to the lease and service agreements entered into with these tenants. The company benefits from a resilient customer base, which is a key factor supporting the long-term viability of the model.

High stickiness due to multi-year, exclusive lease agreements.

Stickiness is built into the physical contracts. The ground leases that underpin the entire campus development have remaining terms ranging between 16 to 73 years as of June 30, 2025. This long-term commitment shields the revenue stream from short-term market fluctuations, though the company does face risks related to construction costs during the growth phase. The focus is on securing these long-term lease contracts as a foundation.

The scale of the relationship commitment can be seen in the network expansion targets:

• Airports in operation or development as of Q3 2025: 19.
• Target for total airports by year-end 2025: 23.
• Occupancy rate at existing operational hangars as of Q2 2024: 94%.

Direct service provision through the Home Base Operator (HBO) model.

The Home Base Operator (HBO) model is the direct service delivery mechanism. It's designed to offer private and corporate customers the best physical infrastructure coupled with dedicated service tailored specifically for based aircraft. This contrasts with traditional fixed-base operators (FBOs) by focusing on a comprehensive, dedicated experience. The goal of this integrated service is offering the shortest time to wheels-up in business aviation.

Here's a look at the revenue impact from leasing and service commencement:

Note: Consolidated revenue for the six months ended June 30, 2025, was not explicitly broken down into rental/fuel components in the provided snippet, so the table uses the reported Rental Revenue for the six-month period and the reported Q2 YoY growth rate for context.

Pre-leasing programs to secure commitments before campus completion.

Sky Harbour Group Corporation is actively using pre-leasing to de-risk the ramp-up phase of new facilities. Management has highlighted that the pilot program for pre-leasing was successful and has been converted into a permanent leasing program going forward. This strategy helps secure commitments ahead of the physical completion, which is critical given the expected 4-6 month lease-up cycle for campuses like Phoenix (DVT), Dallas-Addison (ADS), and Denver (APA). The company is focusing on Tier 1 airports and same-field expansion, which is where this pre-leasing focus is concentrated.

The company is gearing for scale, and this leasing strategy is central to that.

Finance: draft the 13-week cash view by Friday, focusing on cash burn until the run-rate breakeven target for year-end 2025 is hit.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Channels

The Channels block for Sky Harbour Group Corporation (SKYH) involves physical assets, direct sales efforts, and capital market engagement to reach and serve its Customer Segments.

Direct sales team securing long-term lease contracts

The direct sales approach is supported by a permanent pre-leasing strategy for new developments, securing commitments before construction is complete.

• Ground leases signed average a 50-year term, with some extending up to 75 years.
• New campus leases command rental rates approximately 23-38% above original market estimates based on CBRE 2022 benchmarks.
• Rental revenue is projected at $39 per square foot, supplemented by fuel sales of $5 to $6 per square foot.
• The company is focusing on Tier 1 airports and pursuing same-field expansion for revenue capture.

Operational hangar campuses (e.g., Dallas, Denver, Phoenix, Seattle)

The physical channel is the network of Home-Basing Solutions (HBS) campuses, which are the core delivery mechanism for the value proposition.

Sky Harbour Group Corporation reaffirmed guidance to deliver 23 airports by the end of 2025. As of Q3 2025, nine campuses were conducting resident flight operations, with nine more in development. The long-term target is a presence across 50 major U.S. airfields.

The physical assets represent a significant capital commitment, with constructed assets and construction in progress exceeding $308.0 million at the end of Q3 2025. Prototype hangar sizes have increased to 37,000 square feet, capable of sheltering up to five super-heavy business jets.

Investor Relations and financial roadshows to secure capital

Capital formation is a critical channel for funding the development pipeline, which includes a focus on debt facilities and equity raises.

The company anticipates reaching breakeven on a cash flow from operations basis by next month on a run rate basis.

Corporate website and direct outreach to corporate flight departments

The corporate website, https://ir.skyharbour.group, serves as a primary hub for investor information and general corporate updates. Direct outreach targets the core customer segments: high net-worth individuals and Fortune 500 companies.

• Investor Relations contact email: investors@skyharbour.group.
• The company's offering includes fully customizable office space alongside hangar shelter.
• The business model is designed to offer the shortest time to wheels-up in business aviation.

Finance: draft 13-week cash view by Friday.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Customer Segments

You're looking at the core clientele Sky Harbour Group Corporation targets with its dedicated hangar real estate model. This isn't about quick turnarounds; it's about providing a permanent, exclusive address for high-value assets.

The customer segments are highly specific, focusing on those who value asset security, dedicated space, and predictable operational tempo over high-volume transient services. As of late 2025, Sky Harbour Group Corporation is on track to meet its goal of having 23 airports in its portfolio by the end of 2025, which directly supports serving this defined customer base across the United States.

Corporate flight departments and business jet operators.

This group represents a significant portion of the demand for Sky Harbour Group Corporation's private hangar space. These are entities that operate aircraft for corporate travel and require consistent, reliable infrastructure at key business locations. The focus here is on providing a dedicated home base, which aligns with the company's strategy of differentiating itself from fixed-base operators by offering private hangars.

The tenant mix data from October 2025 shows that charter operators and corporations account for 30% of Sky Harbour Group Corporation's tenant base.

Ultra-High-Net-Worth Individuals (UHNWIs) with large private aircraft.

UHNWIs are the primary focus, as their need for privacy and dedicated, high-quality facilities is paramount. These clients often own the largest and most valuable business jets, which require specialized hangar dimensions, such as the 37,000 square foot prototype hangars designed to accommodate up to five super-heavy business jets.

The data clearly shows the concentration of this segment:

Rental revenue for the three months ended June 30, 2025, was $5.2M, reflecting the core income derived from leasing these dedicated spaces to these customer types.

Aircraft owners requiring a permanent, dedicated, and exclusive home base.

The entire value proposition of Sky Harbour Group Corporation is built around serving aircraft owners who need a permanent home base, as opposed to transient or shared facilities. This exclusivity is a key differentiator in the market. The company develops and manages these business aviation hangars specifically as Home-Basing campuses. This commitment to a dedicated home base is what drives the demand for their long-term leasing structure.

Tenants seeking long-term leases (1 to 10 years) in supply-constrained markets.

Sky Harbour Group Corporation actively targets airfields where there is a known imbalance between hangar supply and demand. The lease structure is designed to capture the long-term value appreciation in these constrained markets while offering tenants a stable, multi-year commitment. The company's leasing strategy has shifted to a permanent pre-leasing program for new developments.

The typical lease terms offered to tenants reflect this strategy:

• Lease lengths generally range from one to five years.
• Some agreements extend up to ten years.
• Leases are structured as either gross or triple-net, with tenants covering insurance, taxes, and utilities.
• The company avoids locking in value too early, preferring shorter tenant leases due to anticipated inflation in asset value.

For example, non-cancelable future minimum lease payments from tenants as of June 30, 2025, show required payments extending through 2029 and beyond, with the bulk of the commitment falling into the later years of the lease terms. Finance: draft 13-week cash view by Friday.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Cost Structure

The Cost Structure for Sky Harbour Group Corporation is heavily weighted toward capital deployment for asset expansion, followed by fixed and variable operating costs associated with the operational campuses.

Heavy Capital Expenditures (CapEx) on New Construction represents a primary cost driver as Sky Harbour Group Corporation executes its nationwide network build-out. For the first quarter of 2025, the company reported CapEx of $46 million dedicated to new campus construction.

The cost to build these physical assets is substantial, with management estimating construction costs around $300 per square foot. This figure is supported by earlier commentary noting an average build cost between $240 - $300 per rentable square foot.

A significant portion of the fixed cost base involves securing the land rights. Ground lease payments to airport authorities are structured as long-term fixed costs, with executed ground leases averaging a 50-year term, and some extending up to 75 years. The actual cost paid for this ground rent is approximately $3 per square foot.

Financing these large capital outlays results in considerable interest expense. The debt structure heavily utilizes tax-exempt municipal bonds, which provide a cost of capital advantage. The municipal bond coupon rate on the first bond deal averages 4.18%. This is favorable compared to market rates, as the company reports pricing its debt roughly 200 basis points below what would otherwise be market.

Once campuses are operational, ongoing expenses are incurred to run the facilities. For the second quarter of 2025, the reported Campus operating expenses totaled $2.226 million (or $2,226 thousand). These expenses include payroll and hangar maintenance and operation, estimated to be around $3 to $4 per square foot.

Here is a summary of key cost components identified:

The operating expenses for the three and six months ended June 30, 2025, are detailed below:

• Campus operating expenses for the three months ended June 30, 2025: $2,226 thousand.
• Campus operating expenses for the six months ended June 30, 2025: $4,109 thousand.
• Interest expense for the three months ended June 30, 2025: $133 thousand.
• Interest expense for the six months ended June 30, 2025: $271 thousand.

The company is also managing significant long-term liabilities that factor into the overall financial structure, including operating lease liabilities of $175.370 million and net bonds payable of $162.72 million as of June 30, 2025.

Finance: draft 13-week cash view by Friday.

Sky Harbour Group Corporation (SKYH) - Canvas Business Model: Revenue Streams

You're looking at how Sky Harbour Group Corporation (SKYH) actually brings in the money, which is key for valuing any infrastructure play like this. The revenue streams are pretty focused, centered on long-term contracts for their premium hangar space.

The Long-term Hangar Lease Revenue is definitely the primary source you need to watch. For the second quarter of 2025, this segment brought in $5.2 million. This recurring revenue base is what underpins the whole model, so you want to see that number climbing as more campuses stabilize.

Then you have the Ancillary Services Revenue, which is mainly fuel sales. In that same Q2 2025 period, this added another $1.4 million to the top line. Honestly, these two streams make up the bulk of the reported revenue for that quarter; $5.2 million plus $1.4 million equals the reported consolidated revenue of $6.6 million for Q2 2025.

Here's a quick look at the revenue cadence we're seeing as of late 2025:

Sky Harbour Group Corporation is also tapping into other cash sources. You'll see Upfront cash from strategic joint ventures and asset monetization. For instance, in Q3 2025, the company agreed to a Joint Venture (JV) partnership at Miami Opa Locka Executive Airport. Executives have also mentioned exploring potential hangar sales to select tenants, which would generate non-recurring upfront cash.

The quality of revenue shifts as campuses mature. Revenue from stabilized campuses enjoys a higher revenue per square foot because they are fully leased and operational, commanding premium rates. To give you a sense of the ramp, Q2 2025 revenue included roughly only $200,000 from the three new campuses that had just opened that quarter.

The overall top-line growth is defintely strong, with the Trailing Twelve Months (TTM) Revenue as of September 30, 2025, hitting $24.13 million. This reflects the ongoing leasing and operational ramp-up across their network, which included operations at nine airports as of Q3 2025.

Key revenue drivers and related figures include:

• Long-term Hangar Lease Revenue (Q2 2025): $5.2 million
• Ancillary Services Revenue, primarily fuel (Q2 2025): $1.4 million
• TTM Revenue (as of Sep 30, 2025): $24.1 million
• Revenue from new campuses in Q2 2025: roughly $200,000
• Q3 2025 consolidated revenue: $7.3 million

Finance: draft 13-week cash view by Friday.