Sky Harbour posts 56% revenue growth in 1Q

Adjusted EBITDA on an annualised run rate basis is expected to reach $4m to $6m by year end, up from negative $6m in Q1.

Sky Harbour Group reported a 56% year-over-year increase in revenues in the first quarter of 2026, as the private aviation hangar developer continued to scale its campus portfolio across the United States.

Total revenues for the quarter reached $5.2m, beating budget by 3.2%, with rental revenue of $4.2m and fuel revenue of $1.1m.

Net income came in at $314,000, with total expenses of $4.9m driven by higher campus operating costs tied to new openings and increased headcount. Campus operating expenses came in at $1.75m came in 7.4% above budget while fuel expenses of $558,000 ran 28.8% over, reflecting higher activity volumes. Ground lease expenses of $1.02m and depreciation of $1.5m were broadly in line with budget.

Cash flow from operations reached $2.9m, nearly triple the $1m generated in the same period last year, with the improvement driven by higher revenues from new campus openings and increased occupancy.

Total assets stood at $363.7m, with cost of construction reaching $48.5m as the company continues to build out its pipeline, up from $38.9m at year end 2025.

“The pace of investment and new construction at Sky Harbour is accelerating,” said company’s chief financial officer Francisco Gonzalez on the earnings call. “Revenues experienced an increase of 56%YoY and 8% sequentially, given the new campus openings during the past year and increases in occupancy and rental rates.”

The most telling metric for the company in the quarter was re-lease pricing. The company said that across approximately 119,000sqft of hangar space that has been re-leased in the past 12 months, the average increase between one lease and the next was 23%, up from 22% in the prior quarter. This is on top of contractual annual escalators embedded in all leases, which increase at CPI with a floor of 4%.

“We are on the island of Manhattan from a real estate perspective. You just cannot build new airports. And we think that this scarcity is what is one of the key components of driving the value on a macro level in this company going forward,” CEO Tal Keinan said commenting on what was stimulating this growth.

The quarter’s most significant development was the opening of Miami Opa Locka Phase 2, which Sky Harbour delivered on time and on budget, with 68% of space already leased on opening day.

This campus is the first to use Sky Harbour’s Ascend integrated construction programme, which combines in-house architecture, engineering, steel manufacturing and construction management.

“Same campus expansion can be a lot more valuable than putting a new dot on the map,” said Keinan. “We know the market and even more importantly, the market knows us. There’s a lot of pent-up demand in Miami.”

Sky Harbour’s portfolio currently spans 59 hangars across eight campuses totalling 981,000sqft of leasable space, with 692,000sqft contracted.

Fully stabilised campuses including Sugar Land, Nashville and Miami Phase 1 are at or near 100% occupancy. Newer campuses at Denver (APA, 37% leased) and Phoenix (DVT, 71% leased) are in lease-up.

Across stabilised campuses, economic occupancy is running at 100% or above on all but one site, with San Jose leading at 132%. The company noted a growing trend of residents upgrading from semi-private to fully private hangars at significantly higher rents.

The company separately doubled its footprint at Stewart International Airport in New York, a Tier 1 market, and is considering developing the entire project at once rather than in phases.

For the first time since going public four years ago, Sky Harbour provided formal financial guidance. The company expects to exit 2026 with an annualised revenue run rate of $42m to $46m, with the step-up driven by Miami Phase 2 coming online and continued lease-up at Denver and Phoenix.

Gonzalez said 2026 is not the year investors should be focused on. “It is really 2027 revenues and 2028 revenues and EBITDA that really are the things that people need to be focused on,” he said, pointing to the volume of projects currently under construction that will deliver revenue step-ups as they open across the next 18 months.

Sky Harbour ended the quarter with $368m in available liquidity including $187m in cash and US treasuries, with only $19m drawn on its $200m JPMorgan credit facility.

Total assets stood at $363.7m against bonds payable of $162.9m, with members’ equity of $101.8m.