Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 63

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 63
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.6 %Commercial Jet Engines and Parts91,865 90,463 1,402 1.5 %Corporate and Other7,853 6,273 1,580 25.2 %$225,535 $214,154 $11,381 5.3 %

Revenues from the overnight air cargo segment for the nine months ended December 31, 2024 increased by $7.2 million (8.5%) compared to the nine months ended December 31, 2023. The increase was principally attributable to higher administrative fees and pass-through revenues due to a larger fleet consisting of 105 aircraft as of December 31, 2024 compared to 85 aircraft as of December 31, 2023.

The ground equipment sales segment's revenue for the nine-month period ended December 31, 2024 was $33.7 million compared to $32.5 million in the same period in the prior fiscal year. The increase was primarily driven by an increase in parts and service revenue bolstered by overhaul work in the third quarter of the current fiscal year. 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. This trend was likely influenced by a growing emphasis on maintaining existing fleets to address operational needs in key markets.

The commercial jet engines and parts segment contributed $91.9 million of revenues in the nine months ended December 31, 2024 compared to $90.5 million in the comparable prior year nine months period. The increase was primarily driven by higher component part sales at Contrail in the current year compared to the prior year. This is partially offset by a total of five whole engine sales at Contrail and Worthington combined in the prior year compared to none in the current year. We believe Contrail's increased component part sales is driven by airlines focusing on their existing fleets of 14,000 aircraft due to the cancellation or delay of new orders from the OEMs, allowing the company to leverage its expertise and serviceable engine portfolio to meet immediate demands.

Revenues from the corporate and other segment in the nine months ended December 31, 2024 increased by $1.6 million (25.2%) compared to the nine months ended December 31, 2023. The increase was primarily attributable to increased software subscriptions at Shanwick due to growing customer base.

Following is a table detailing operating income (