Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 64

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 64
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loss) by segment during the nine months ended December 31, 2024 compared to the same nine months in the prior fiscal year (in thousands):

30

Nine Months EndedDecember 31,Change20242023Overnight Air Cargo$5,510 $5,568 $(58)Ground Equipment Sales(173)(619)446 Commercial Jet Engines and Parts7,389 2,002 5,387 Corporate and Other(7,589)(7,140)(449)$5,137 $(189)$5,326 

Consolidated operating income for the nine months ended December 31, 2024 was $5.1 million compared to an operating loss of $0.2 million for the comparable nine months of the prior year.

The overnight air cargo segment's operating income for the nine months ended December 31, 2024 remained relatively flat compared to the same period in the prior year, despite a $7.2 million increase in revenue. This was primarily due to higher margins in flight operations being offset by lower margins in maintenance revenue, driven by increased operating expenses.

The ground equipment sales segment's operating loss for the nine months ended December 31, 2024 was $0.2 million compared to operating loss of $0.6 million in the prior year comparable period. The modest improvement in operating loss despite the $1.2 million revenue increase was primarily due to changes in volume and customer mix. The higher revenue was driven by sales to lower-margin customers or higher-volume orders with reduced profitability, which impacted the overall improvement in operating loss.

The commercial jet engines and parts segment generated operating income of $7.4 million in the current year nine-month period compared to operating income of $2.0 million in the prior year nine-month period. The increase was primarily attributable to Contrail's  higher profit margin on component part sales in the current year compared to the prior year.

The corporate and other segment's operating loss for the nine-month period ended December 31, 2024 was $7.6 million compared to an operating loss of $7.1 million in the prior year comparable period. The increase in operating loss was primarily driven by higher health insurance claims the current year period. 

Following is a table detailing non-operating income (expense) during the nine months ended December 31, 2024 compared to the same nine months in the prior fiscal year (in thousands):

Nine Months EndedDecember 31,Change20242023Interest expense$(6,