Company: AIRTP
Filing Date: 2025-08-12
Form Type: 10-K/A
Source: 0000353184-25-000069
Chunk: 31

Company: AIR T INC
Filing Date: 2025-08-12
Form: 10-K/A
Chunk 31
---
 with respect to each aircraft leased. The dry-lease agreements provide for the reimbursement by FedEx of our costs, without mark up, incurred in connection with the operation of the leased aircraft for the following: fuel, landing fees, third-party maintenance, parts and certain other direct operating costs. Under the dry-lease agreements, certain operational costs incurred by us in operating the aircraft are not reimbursed by FedEx at cost, and such operational costs are borne solely by us. An increase in unreimbursed operational costs would negatively affect our results of operations.

Because of our dependence on FedEx, we are subject to the risks that may affect FedEx’s operations.

<div align='center'>20</div>

Because of our dependence on FedEx, we are subject to the risks that may affect FedEx’s operations. These risks are discussed in FedEx’s periodic reports filed with the SEC including its Annual Report on Form 10-K for the fiscal year ended May 31, 2024. These risks include but are not limited to the following:

• Global economic and geopolitical conditions and developments in the markets in which it operates;

• Additional changes in international trade policies and relations could significantly reduce the volume of goods transported globally and adversely affect its business and result of operations;

• Its transportation businesses are affected by the price and availability of jet and vehicle fuel;

• Its ability to successfully implement its business strategy and transformation program

• A significant data breach or other disruption to its technology infrastructure could disrupt its operations and result in the loss of critical sensitive or confidential information;

• Failure to adjust its air network to remove costs related to services currently provided to the USPS could adversely affect our profitability;

• Insurance and claims expenses could have material adverse effect on it;

• The effects of any international conflicts or terrorist activities on the transportation infrastructure;

• The failure of third-party service providers to perform as expected, or disruptions in relationships with those providers or their provision of services to FedEx;

• The effects of a widespread outbreak of an illness or any other communicable disease or public health crisis;

• Failure to successfully implement its business strategy and effectively respond to changes in market dynamics and customer preferences;

• Its ongoing assessment of the role of FedEx Freight in its portfolio structure may not result in any consummated transaction or other outcome;

• It depends on the strong reputation and the value of the FedEx brand;

• The effect of intense competition;

• Its businesses are capital intensive, and it must make capital decisions based upon projected volume levels;

• Its ability to execute and effectively operate, integrate, leverage, and grow acquired businesses