American cargo operator, Air T, has posted a 0.78 per cent year-on-year net profit increase to US$455,000 in third quarter ending December 31, drawn on revenues of $3.1 million, up 12 per cent year on year, according to Shipping Gazette.
Air T's Mountain Air Cargo and CSA Air subsidiaries operate single and twin-engine turbo-props in the eastern half of the US, Puerto Rico and the Caribbean Islands.
Higher profit was attributed to an increase in its overnight air cargo revenues of $2 million provided by the express delivery industry, a 17 per cent increase year on year.
Ground equipment sales revenue increased one per cent to $106,000 producing operating income of $767,000, the result of a 10 point increase in gross margins due to improved plant efficiencies and a substantial reduction in the sale of low margin flight-line tow tractor units to the military.
Ground equipment sales backlog was $10.2 million, compared to $9.2 million same quarter 2012 and $6.5 million as of March 31.
The North Carolina company's ground support services unit, Global Ground Support, reported a strong revenue increase of 29 per cent to $967,000 supported by ongoing growth in locations and in services offered to new and existing customers.
In the third quarter, the company's operating income declined by $210,000 due in part to a reduction in revenue aircraft, increased maintenance labour costs and increased maintenance facility costs this quarter. It was also negatively impacted by the $566,000 severance payment paid to its former CEO, Thomas Horton.
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