How did Air T's revenue and expenses shift in Q3 2025 compared to previous quarters?

**Air T's revenue increased significantly in Q3 2025 compared to the previous quarter**, driven primarily by robust performance across its business segments:

1. **Overnight Air Cargo**: This segment reported a 5% increase in revenue, reaching $30.6 million. The growth was attributed to an expanded fleet, which now operates 105 aircraft.
2. **Ground Equipment Sales**: Revenue surged by 40% to $11.8 million, with a backlog valued at $12.9 million. This segment demonstrated a successful cost management despite challenging market conditions, returning to profitability.
3. **Commercial Jet Engines and Parts**: This segment experienced a substantial increase, with revenue rising by $8.5 million to $32.7 million. The segment's performance was notable, driven by an interesting market dynamic: OEM delivery delays forcing airlines to extend the service life of existing fleets, which created robust demand for aftermarket parts.

In contrast, Air T's expenses remained stable or showed slight improvements in Q3 2025 compared to previous quarters:

1. **Operating Expenses**: The company reported an operating income of $1.8 million for the quarter ended December 31, 2024, an increase of $3.4 million from the prior year's comparable quarter, which had an operating loss of $1.6 million.
2. **Adjusted EBITDA**: Air T achieved an Adjusted EBITDA profit of $2.7 million for the quarter ended December 31, 2024, compared to an Adjusted EBITDA loss of $0.1 million in the prior year's comparable quarter.

Overall, Air T showcased strong revenue growth and improved operational efficiency in Q3 2025, contributing to a compelling turnaround story across its segments.