ALTAIR INTERNATIONAL CORP. (ATAO)·Q1 2025 Earnings Summary

Executive Summary

• Altair International Corp. (Premier Air Charter Holdings Inc. post-name change) reported Q1 2025 revenue of $5,875,523 and a net loss of $1,223,605 as the business transitioned to charter aviation; revenue was essentially flat year over year while profitability deteriorated due to pre-revenue operating costs, aircraft maintenance, and higher interest expense .
• Charter sales benefited from aircraft added to the fleet (~$1,049,751), but were offset by grounded aircraft and the conversion of management contracts to leases, compressing gross profit to $146,588 .
• Liquidity remains tight: current assets of $844,776 vs current liabilities of $7,507,891; substantial related-party obligations ($7.5M) and a going concern warning highlight financing risk .
• Structural catalysts include the March 11, 2025 merger closing (Premier becomes a wholly owned subsidiary) and an April 25, 2025 corporate name change under Item 5.03; however, no formal Q1 2025 Item 2.02 press release or earnings call transcript is available, limiting near-term IR visibility .

What Went Well and What Went Wrong

What Went Well

• Fleet expansion drove ~$1,049,751 in charter revenue from newly added aircraft; legacy aircraft also showed a $345,927 charter revenue improvement .
• Operating cash flow turned positive at $994,869, supported by related-party working capital flows .
• Disaggregated revenue shows charter sales increased year over year ($5,801,367 vs $5,175,371), indicating underlying demand despite operational headwinds .

What Went Wrong

• Cost of sales rose by $712,301 year over year ($5,728,935 vs $5,016,634), driving gross profit down to $146,588 and pressuring margins due to pre-charter costs and grounded aircraft .
• Operating loss of $855,678 driven by removed pass-through maintenance (~$250,000), higher salaries ($63,233), and elevated consulting fees ($83,091) linked to the merger .
• Interest expense increased sharply (up ~$286,850) tied to aircraft financing; management flagged going concern risks and heavy reliance on related-party financing and advances .

Financial Results

Income Statement vs Prior Year

Disaggregated Revenue

Balance Sheet and Cash Flow KPIs

Trend vs Prior Two Quarters (Pre-Merger ATAO vs Post-Merger)

Note: Q3 2024 and Q2 2025 reflect pre-merger Altair (development-stage, no revenue); Q1 2025 reflects consolidated Premier charter operations post-merger .

Guidance Changes

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript is available; themes drawn from filings.

Management Commentary

• “Revenues… totaled $5,875,523… the Company realized approximately $1,049,751 in Charter Revenue from aircraft added to the fleet,” offset by lost charter revenue from grounded aircraft and conversion of management contracts to leases .
• “Loss from Operations… is primarily due to… ~$460,000 in pre-charter revenue operating costs… ~$280,000 in the cost of grounded aircraft… aircraft maintenance costs of approximately $250,000… increased salaries and wages of $63,233… increased consulting fee of $83,091” .
• “Other Expense… increase is primarily attributable [to] interest expense related to aircraft leases and additional debt… increased interest expense of $286,850 incurred in financing aircraft” .
• Liquidity: “At March 31, 2025, the Company had current assets of $844,776 and current liabilities of $7,507,891… support… is dependent on receiving support from related parties… there is substantial doubt about the Company’s ability to continue as a going concern” .

Q&A Highlights

Not applicable; no Q1 2025 earnings call transcript is available in the document catalog.

Estimates Context

Wall Street consensus (S&P Global) for ATAO Q1 2025 EPS and revenue was unavailable due to missing mapping; therefore, results cannot be benchmarked to consensus. If needed, we will update once S&P Global coverage is established.

Key Takeaways for Investors

• The step-change from development-stage to operating charter aviation is evident: $5.88M revenue in Q1 2025, but profitability under pressure as integration and pre-revenue costs flow through P&L .
• Positive operating cash flow ($994,869) provides some flexibility, yet cash declined to $146,590; working capital deficit and related-party funding reliance remain critical risk factors .
• Fleet adds are contributing to charter revenue, but maintenance grounding and lease conversions reduce high-margin maintenance and management revenue streams, compressing gross profit .
• Interest burden from aircraft financing materially impacts earnings; deleveraging or refinancing could be a medium-term lever if access to capital improves .
• Regulatory overhang (FAA investigation) introduces headline and operational risk, though management has implemented new procedures; outcome and potential penalties are currently not estimable .
• Corporate actions (merger closing, name change) may broaden investor awareness, but the absence of a Q1 2025 8‑K Item 2.02 press release and no earnings call transcript constrains near-term IR communication catalysts .
• Near-term trading implications: high sensitivity to financing updates, fleet utilization, and any resolution of the FAA matter; medium-term thesis depends on scaling charter ops while stabilizing cost structure and interest expense .