Air T Inc. Air T Funding Alpha Income Trust Preferred Securities (AIRTP)

FairStock Score: 12/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a discount. Air T is not that today. It operates in aviation services—overnight cargo, ground support equipment, parts, and regional airlines. Its FedEx dry-lease relationship, with 103 aircraft as of March 31, 2026, offers some recurring revenue, but this is a capital-intensive, cyclical industry with little pricing power. The filed numbers show violent swings: in fiscal 2024, ended 2024-03-31, Air T lost $6.8M; in fiscal 2025, ended 2025-03-31, it lost $6.1M; then in fiscal 2026, ended 2026-03-31, it earned $78.0M on $327.1M of revenue. That profit surge earned the Lynch turnaround label, but it did not persist: in fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $115.5M yet net income was -$15.8M and diluted EPS was -$5.86. Financial health is poor. Trailing free cash flow is -$64.4M, a -13.7% FCF yield; debt-to-equity is 3.18; ROCE is -5.54%; Altman Z is 1.20; Piotroski is 3/9. The 10.58% preferred yield looks generous, but it must be covered by a business with negative free cash flow and high leverage. At the 2026-10-13 close of $18.80, FairStock calculations show P/B of 0.78, but P/E of 55.29, Graham Number of $13.61, and a -38.13% margin of safety. Beta 0.28 is low, but that is not safety when cash flow is negative.

In plain English: Air T runs overnight cargo flights, aircraft equipment, and aviation services. The business has swung between losses and a large profit, and the latest quarter was a loss. The preferred stock offers a high income yield, but the price does not look cheap compared with the company's earnings and financial safety.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K/A (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer