Air T posts Q1 operating loss, hurt by Arena acquisition costs and fleet depreciation

Air T said fiscal first-quarter revenue rose 63% year over year to $115.5 million on the Arena acquisition, but the company posted an operating loss of $12.8 million and adjusted EBITDA fell 45% year over year to $0.8 million.

The company did not provide specific financial guidance for the current or future periods.

Operating loss was primarily driven by transaction and integration costs related to Crestone's acquisition of Arena Aviation Partners.

Elevated depreciation from the fair-value step-up of the Rex aircraft fleet following purchase accounting also contributed to losses.

Aircraft availability in the Rex segment was limited by unscheduled engine removals and third-party maintenance turnaround times.