Sky Harbour Group Corporation (SHG) reported significant financial developments for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenue for the third quarter reached $4.1 million, a 64% increase from $2.5 million in 2023, primarily driven by the commencement of operations at the San Jose International Airport (SJC) and increased occupancy at other hangar campuses. For the nine-month period, revenue surged 90% to $10.1 million, up from $5.3 million, with rental revenue growth attributed to similar operational expansions.

Despite the revenue growth, the company faced escalating expenses. Total expenses for the third quarter rose to $9.0 million from $5.9 million, reflecting a 52% increase. This rise was largely due to a 120% increase in operating expenses, primarily from new ground lease expenses associated with multiple locations. The net loss for the third quarter ballooned to $20.7 million, compared to $2.0 million in the prior year, while the nine-month net loss increased to $37.7 million from $12.4 million in 2023.

The company's financial position showed mixed results. Total assets increased to $456.8 million as of September 30, 2024, up from $402.2 million at the end of 2023. However, cash reserves significantly decreased from $60.3 million to $3.5 million, while restricted cash rose from $12.0 million to $70.6 million. The accumulated deficit worsened from $19.4 million to $51.1 million, and total stockholders’ equity decreased from $132.2 million to $99.5 million.

Strategically, SHG made notable moves, including the acquisition of a 51% interest in Overflow Ltd. in May 2023, which is expected to enhance construction efficiency and reduce costs. The company also entered into several new ground leases across various airports, including a significant 30-year lease in Salt Lake City.

In terms of financing, SHG has been active in raising capital, entering a Private Placement Purchase Agreement in September 2024 to sell shares for approximately $31.8 million, with additional sales planned. The company continues to pursue equity and debt financing to support its expansion efforts, despite facing challenges related to rising interest rates and construction costs.

Overall, while Sky Harbour Group Corporation has experienced substantial revenue growth, it continues to grapple with increasing losses and operational expenses as it expands its aviation infrastructure development initiatives.