Air T has raised USD4 million through trust preferred securities and plans to use the capital, among other sources, to boost the working capital of its subsidiary Mountain Air Cargo (MTN, Kinston).

The cargo specialist operating primarily on behalf of FedEx added thirteen aircraft to its fleet during 2023, including ten Cessna 408Fs, two ATR72-600Fs, and one ATR72-200(F). The expansion marked almost a doubling of the carrier's fleet, which currently stands at 32 aircraft in total, and so required more working capital to support the operations.

Air T said the new funds will also be used to expand its aircraft and engine lease businesses. The holding will also invest in the MRO capabilities of recently acquired subsidiary Worldwide Aviation Services as well as in its ground equipment manufacturer Global Ground Support.

The holding also owns lessor Contrail, cargo carrier CSA Air, and numerous other firms. Each subsidiary operates independently. In the nine-month period that ended on September 30, 2023, Air T posted an adjusted EBITDA profit of USD1.5 billion. Most of its operating revenues come from overnight cargo services.

The trust preferred securities sold by Air T are priced at 12.1% to maturity. The buyers have options to purchase another USD4 million worth of securities on the same terms. The holding is separate to another batch of securities worth USD5.4 million and said it would "more likely than not" be offering more securities soon.