Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 3

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 2
Chunk 3
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 primarily driven by the higher number of deicing trucks sold and higher parts and service revenue in the current year's quarter compared to the prior year's comparable quarter. We believe the increase in parts and service revenue was driven by heightened demand for maintenance and overhaul services, as customers prioritized ensuring the reliability of their equipment ahead of the winter season. At December 31, 2024, the ground equipment sales segment’s order backlog was $12.9 million compared to $6.2 million at December 31, 2023.

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The commercial jet engines and parts segment contributed $32.7 million of revenues in the quarter ended December 31, 2024 compared to $24.1 million in the comparable prior year quarter, which is an increase of $8.5 million (35.4%). This increase was largely attributed to higher component sales at Contrail during the current quarter. We believe this growth is due to airlines prioritizing the maintenance of their existing 737NG and A320CEO fleets, due in part by cancellations or delays in new aircraft deliveries from original equipment manufacturers ("OEM"). Contrail has been able to meet this rising demand by leveraging its inventory and expertise in providing serviceable aftermarket materials.

Revenues from the corporate and other segment for the three-month period ended December 31, 2024 increased by $0.6 million (27.6%) compared to the third quarter of the prior fiscal year. The increase was primarily attributable to increased software subscriptions at Shanwick driven by its growing customer base.

Following is a table detailing operating income (loss) by segment during the three months ended December 31, 2024 compared to the same quarter in the prior fiscal year (in thousands):

Three Months EndedDecember 31,Change20242023Overnight Air Cargo$1,864 $1,594 $270 Ground Equipment Sales184 (522)706 Commercial Jet Engines and Parts2,646 (627)3,273 Corporate and Other(2,878)(2,053)(825)$1,816 $(1,608)$3,424 

Consolidated operating income for the quarter ended December 31, 2024 was $1.8 million, compared to operating loss of $1.6 million in the comparable quarter of the prior year.

The overnight air cargo segment's operating income for the three-month period ended December 31, 2024 was $1.9 million compared to operating income of $1.6 million in