Air T records 43 per cent profit drop for 2011
North Carolina-based Air T has posted consolidated net earnings of $2.1m for fiscal 2011 until March 31, down 43 per cent on 2010 ($0.87 per diluted share versus $1.54).
Consolidated revenue stood at $83.4m (+2.7 per cent), which the company attributes to a nine per cent or $3.3m increase in air cargo revenue. By comparison, there was a $112,000 decrease in ground equipment sales revenue and a $951,000 (10 per cent) decrease in ground equipment services revenue. Air T says the increase in cargo revenue was due to higher administrative fee and maintenance revenue relating to four aircraft purchased by FedEx. The decline in services revenue was attributable to “the reduction in scope of work” in 2H for the company’s largest customer, while sales declined owing to a lack of demand from the United States Air Force.
