Air T Shareholders Approve Board, Pay and Deloitte as Rex Engine Constraints Persist

Key Points

• Air T shareholders approved all proposals at the 2026 annual meeting, including the election of five directors, executive compensation and Deloitte & Touche’s appointment as independent auditor for fiscal 2027.
• Rex Regional Airlines remains constrained by limited engine MRO capacity. Parts availability has mostly improved, but only 30 Saab 340 aircraft are operating—slightly behind the company’s commitment to operate more than 40 by December 2027.
• Air T is focusing on expanding aircraft asset management through Crestone and Contrail rather than acquiring more regional airlines. Contrail’s debt rose to $13.7 million primarily because of a May 2026 teardown-package acquisition and a minority-interest redemption.

Air T NASDAQ: AIRT shareholders approved all matters presented at the company’s 2026 annual meeting, including the election of five directors, an advisory vote on executive compensation and the ratification of Deloitte & Touche as its independent registered public accounting firm for fiscal 2027.

Chairman, President and CEO Nick Swenson said 2,483,550 shares, representing 92.1% of Air T’s 2,696,509 outstanding common shares as of the June 26 record date, were represented at the Aug. 25 meeting. Craig Colosso of Equiniti Trust Company, serving as voting inspector, confirmed that a quorum was present.

The company said a complete vote tally would be included in a Form 8-K filing with the Securities and Exchange Commission within four business days.

Board Elections and Other Votes

Shareholders elected all five board nominees: Swenson, Raymond Cabillot, William Foudray, Gary Kohler and Peter McClung. The directors were elected by plurality vote, according to the meeting discussion.

Investors also approved, on an advisory and non-binding basis, the compensation paid to the company’s named executive officers. Swenson said the board and its compensation committee expect to consider the result when making future executive-compensation decisions.

In addition, shareholders ratified the appointment of Deloitte & Touche as Air T’s independent registered public accounting firm for the fiscal year ending March 31, 2027. Deloitte was first appointed by the audit committee on Sept. 27, 2018, and audited the company’s financial statements for the fiscal year ended March 31, 2026.

Rex Regional Supply Chain Constraints

During the shareholder question-and-answer session, Swenson addressed supply-chain issues affecting Rex Regional Airlines. He identified two primary constraints: the availability of engine parts and maintenance, repair and overhaul, or MRO, capacity to overhaul and deliver operational engines.

Swenson said Air T believes the parts-supply issue has “mostly” been relieved at present, while cautioning that conditions could change. He said the more significant current issue is MRO throughput and the ability of shops to produce usable engines.

“The type of engine that Rex uses is overhauled by a limited number of shops in the world,” Swenson said, adding that shop priorities are part of the reason the company has been slow to produce good engines.

Rex currently has 30 Saab 340 aircraft operating, Swenson said. The company has commitments with the Australian Commonwealth to endeavor to operate more than 40 Saab 340 aircraft by December 2027. Swenson said the company has not yet reached the final date for assessing that goal, but acknowledged that 30 aircraft in service puts it “slightly behind” those commitments.

Aircraft Asset Management and Contrail Debt

Swenson said Air T does not currently intend to expand its airline-operations footprint by acquiring additional regional airlines. However, he said the company is expanding its aircraft asset-management operations through Crestone and Contrail.

That business has been supported by the company’s capital partners, Swenson said, and has grown historically.

Addressing a question about Contrail debt rising to $13.7 million from $6.2 million cited in the company’s latest fourth-quarter fiscal 2027 presentation, Swenson attributed the increase primarily to two factors:

• The acquisition of a new teardown package in May 2026.
• The redemption of a non-controlling interest following the retirement of Contrail’s minority owner.

Swenson added that Contrail’s debt has historically moved up and down based on the level of inventory it holds. No further shareholder questions were submitted through the company’s online platform or through the phone lines before the meeting concluded.

About Air T (NASDAQ:AIRT)

Air T, Inc NASDAQ: AIRT is a U.S.-based telecommunications company specializing in prepaid and pay-as-you-go voice and data services. Headquartered in Boca Raton, Florida, Air T offers a mix of retail and wholesale solutions designed to connect end users and enterprise customers across domestic and international markets. The company's product portfolio includes prepaid wireless plans, long-distance calling services, roaming arrangements, calling cards and VoIP solutions.

Through proprietary networks and strategic partnerships with major carriers, Air T provides voice and data connectivity under subscription-free and subscription-based models.

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