Air T's fiscal first quarter ended June 30, 2026, reported on August 14, was the first full quarter since the December 2025 acquisition of Regional Express (Rex), the Australian regional carrier, and the June 10, 2026 purchase of Arena Aviation Partners. Consolidated revenue jumped 63% to $115.5 million, but the quarter produced an operating loss of $12.8 million, down from operating income of $0.8 million a year earlier, and a net loss attributable to common stockholders of $15.8 million, or $5.86 per share, versus a $1.6 million loss in the prior-year quarter. The entire swing came from Rex, which alone lost $7.7 million of operating income on $55.9 million of revenue, and from the newly created aviation leasing and asset-management segment, which absorbed $3.5 million of transaction and start-up costs.
The equity consequence of this quarter is that Air T's reported profitability now rests on two pillars that are moving in opposite directions. The legacy FedEx feeder business, the commercial aircraft and parts operations, and the deicing-truck maker together still fund the holding company's overhead, while the two newest acquisitions, Rex and the aviation leasing platform, are consuming cash and recognizing non-cash losses as they are integrated. What saved the bottom line from being far worse was a $3.1 million non-operating gain from equity-method investments, led by a $1.8 million gain on the redemption of common interests in Crestone Asset Management, the aircraft asset manager, which offset none of the operating loss but did reduce the net loss at the pre-tax line.
The single load-bearing risk is leverage: at June 30, 2026, Air T carried roughly $246 million of debt against a common equity market value of about $79 million, financed increasingly by expensive instruments that carry 8.5% to 12% coupons, and it has just put in place an at-the-market equity program allowing up to $8 million of stock sales. The falsifiable clock for the thesis is the Rex recovery: the next quarterly prints through fiscal 2027 show whether Rex's adjusted EBITDA of $1.9 million in the June quarter, which excludes $8.8 million of depreciation and $0.7 million of integration costs, can be converted into cash-flow-positive operations while the fleet reactivation program proceeds and fuel costs normalize. If Rex narrows its operating loss through the September and December quarters while the legacy segments hold their ground support equipment orders, the equity re-rates toward the book value per share of roughly $24.22; if the losses persist and the ATM is used to fund cash burn, the multiple on a shrinking equity base compresses further.