Air T, Inc. (NASDAQ: AIRT) announced the full quarterly schedule for its newly issued Alpha Income Preferred (AIP) securities, a preferred‑share program that will pay a cash distribution of $0.50 per share—an 8.00% annual coupon—throughout 2026 and 2027.
The AIP securities carry a maturity date of June 7, 2049, are redeemable, and have a liquidation preference of $25.00 per share. The call date of June 7, 2024 has already passed, leaving the securities as a long‑term, fixed‑income instrument for shareholders.
Record dates for the 2026 distribution cycle are February 13, May 14, August 14, and November 13, with corresponding payment dates on February 17, May 15, August 17, and November 16. For 2027, record dates fall on February 12, May 14, August 13, and November 12, with payments on February 16, May 17, August 16, and November 15.
Air T’s decision to issue the AIP securities aligns with its broader strategy to fund recent acquisitions—most notably the Regional Express purchase—and to manage its significant debt load. By offering a fixed‑income stream, the company aims to attract income‑focused investors while preserving flexibility in its equity structure.
Financially, Air T reported a 2% revenue increase to $291.9 million for the fiscal year ended March 31, 2025, but posted a net loss per share of $2.23. In the first quarter of fiscal 2026, revenue rose 7% to $70.9 million, yet the net loss widened to $1.6 million. The company’s debt remains substantial, and the new preferred dividend commitment adds a recurring cash outflow that will test its ability to sustain payouts amid ongoing losses.
Analysts have not yet reacted to the distribution dates, but the issuance signals Air T’s confidence in its cash‑flow generation and its willingness to commit to a long‑term preferred dividend despite current profitability challenges. The move is expected to broaden the company’s investor base and provide a steady income stream for shareholders.
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