Financial Performance:
- FY2025: First full year of positive operating profit in company history
- Revenue: $246.3M (up 10% YoY)
- EBITDA: $20.9M (up 4x YoY)
- EBITDAR: $78.3M (up 25% YoY)
- Operating cash flow: up 247% YoY
- Cash on balance sheet: $20.5M (vs. $14M prior year)

Q4 2025 Results:
- Revenue: $60.3M (vs. $59.9M Q4 2024)
- ACMI revenue: $43.7M (up 22%), now 60% of total revenue mix (vs. 36% charter)
- Charter revenue: $14.1M (vs. $21.8M)
- Net loss: $1.9M ($0.03/share)
- EBITDAR: $19M; EBITDA: $5.3M
- Operating cash flow: $18.6M (up 80%)
- Block hours flown: 8,053 (up 4%); ACMI block hours: 6,752 (up 17%)
- Average utilization per aircraft: 554 (up 17% from 473)

Strategic Shift:
Company deliberately transitioning from charter to higher-margin ACMI flying, which delivers 10-15% better operating margins and more predictable revenue with lower demand/fuel risk. Growth achieved despite lower net available aircraft due to improved utilization and fleet productivity.

Fleet Status & Expansion:
- Current: 14 passenger aircraft + 4 cargo aircraft (2 active, 2 inactive)
- Q1 2026: 1 additional aircraft entered service
- Pipeline: 4 A319s in delivery process (1 delivered Q4, 1 taking delivery this week, 2 more pending); 2 A320s under LOI for Q2 delivery
- Total planned additions: 7 passenger aircraft for 2026
- Fleet additions tied to contracted/visible revenue, not speculative
- Management states could deploy 7+ additional aircraft immediately if available

Cargo Operations:
Challenging market conditions with excess capacity and pricing pressure. EBIT loss exceeded $10M for the year. Company actively evaluating long-term strategic role of cargo segment given stronger returns in passenger operations.

Revenue Quality Improvements:
- ACMI revenue per block hour: $6,367 (up 3%)
- Charter revenue per block hour: $14,082 (up 19%)

Key Contract Wins:
- New music tour contracts for spring 2026
- Professional hockey team ACMI contracts
- CSI Aviation (US government) contract extended through end of 2026
- Civil Reserve Air Fleet program extended 1 year
- Strong demand from collegiate athletics, professional sports, tour operators, government, and international partners

Market Position:
Management emphasizes constrained narrow-body charter aircraft supply, limited direct competition, and sustained demand. Company positioned as “leading narrow-body charter airline in North America” with proven operating platform and improved cost discipline.

2026 Outlook:
Focus on fleet expansion and increased utilization while maintaining margin integrity and operational reliability. Management confident in absorbing new capacity profitably given contracted revenue pipeline and market demand. No planned European summer flying (unlike prior years) due to strong North American demand and desire to maintain operational focus.

Transformation Narrative:
Company evolved from start-up charter operator to “scaled, optimized narrow-body charter airline” with strengthened leadership, enhanced maintenance infrastructure, improved systems/controls, and disciplined capital allocation focused on long-term profitability.