Air T Annual Operating Revenues Surge
The increase in operating revenues was primarily due to nine percent increase in air cargo revenue.
According to the company, the rise in air cargo revenue was due to increased administrative fee and maintenance revenue related to four aircraft that FedEx purchased during the fiscal year 2011.
Net earnings were $2.13m for the year 2011, a decrease of 43 percent, compared to $3.75m for the same period of 2010.
The decrease in net earnings was primarily due to the decreased profitability in the company's ground equipment sales segment as margins in that segment were dramatically affected by changes to its customer base.
At march 31, 2011, backlog was $9.6m, compared to $1.3m at march 31, 2010 and $8.4m at march 31, 2009.
Walter Clark, chairman and CEO of Air T, said: â€œFiscal year 2011 has been a challenge to our company but even in these difficult times we have remained a strong and profitable company. Global's deicer business has been affected by the lack of deliveries to the USAF during this past fiscal year. Fiscal 2011 was the first year in the last eleven years that no deliveries to the USAF were made.
â€œWhile we have not seen the USAF deicer orders that we had been experiencing, we have had good success in the domestic and international commercial markets, albeit at decreased margins. On a positive note, operating levels at our air cargo delivery business stabilized and we actually saw an increase in the number of aircraft that we operate for FedEx this past year.â€
Air T, through its subsidiaries, Mountain Air Cargo, CSA Air, Global Ground Support and Global Aviation Services, provides overnight air freight service to the express delivery industry, manufactures and sells aircraft deicers and other special purpose industrial equipment, and provides ground support equipment and facilities maintenance to airlines.
Will the firm further increase operating revenues in 2012?
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