Sky Harbour revenues soar by 481% in third quarter
Sky Harbour reported third quarter financial results wherein it posted rental revenue of $2.5m, up 481% year-on-year (YoY) from $0.4m in same period last year due to higher tenant leases at Miami-Opa Locka Executive Airport (OPF) hangar and impact of additional tenant leases at Sugar Land Regional Airport (SGR), Nashville International Airport (BNA) and OPF hangars.
Sky Harbour is an infrastructure company that develops, leases and manages general aviation hangars for business aircraft across the United States.
“Our offering … represents the best home basing solution in business aviation. We are proud that we can already count the top flight departments in the country as Sky Harbour members,” said Tal Keinan, chairman and chief executive officer, Sky Harbour.
“The challenge ahead of us includes constant refinement of the Sky Harbour model, and aggressive scaling across North America,” he added.
The company’s operating expenses of $1.7m during the quarter ate up nearly 67% of the total revenue. The company said the $0.4m increase in operating revenues from the past year was a result of commencement of operations at BNA and OPF hangars and headcount increases.
However, despite the sharp increase in revenues, the company posted a loss of $2m.
The company’s portfolio consists of hangars in Texas, Florida, Nashville, Tennessee, Colorado and Arizona. The company has six airport campuses either in development or ongoing operations and is targeting fourteen additional airfields in the current growth phase and 30 more in the next few decades.
The company said that it is currently in negotiations for new ground leases at another five target airports at key metro markets. It expects that two of these ground leases will be finalized by fourth quarter of 2023, with the other three finalized by second quarter of 2024.
Sky Harbour’s revenue growth in the third quarter was impressive, and is a sign of high demand from business aircraft owners. But the company remains unprofitable, as its operating expenses new investments in hangars and workforce expansion continue to weigh on its bottom line.