Despite a challenging first quarter of fiscal 2012, which ended on June 30, Air T reported double-digit increases in its overnight airfreight segment. Up 21 percent from the first quarter of fiscal 2011, Air T attributes the growth of this sector to higher administrative fees and profits resulting from maintenance labor.
Not all of Air T’s numbers were high, however. The company’s consolidated net earnings were down significantly from the first quarter of fiscal 2011, falling from $299,000 to $168,000.
Still, Air T Chairman and CEO Walter Clark calls his company’s airfreight operations the highlight of the financial period. “We are less than satisfied with the overall results of our first quarter, but we are encouraged by the results of our air cargo segment,” he said in a statement. “That segment has had strong results as of late and is adding aircraft after several years of contraction.”
What’s more, Clark explained, Air T’s ground equipment sales backlog is high — rising $1.3 million from last year — and should result in higher profits in the second quarter of fiscal 2012. Plus, he said, “Our ground support services segment, while still recovering from the Delta contract changes, is continuing to add new stations and work.”
Consolidated revenues also grew for Air T in the first fiscal quarter of 2012, rising 10 percent from the same quarter of the prior fiscal year.