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Prologis for private jet hangars.

WeWork for private jet hangars.

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• Private Hangar Leasing: Provides long-term leases for premium, purpose-built hangar facilities designed for business and private jets.
• Hangar Campus Development: Designs, constructs, and operates integrated private aviation campuses at high-demand airports.
• Hangar Campus Management: Offers ongoing operational management and support services for their private aviation campuses, ensuring security, maintenance, and facility upkeep.

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Sky Harbour (Symbol: SKYH) - Major Customers

Sky Harbour primarily sells to other companies, specifically those operating private and business aircraft that require hangar facilities and related services. Due to client confidentiality and the nature of its real estate leasing business, Sky Harbour does not publicly disclose the names of its specific tenants.

However, based on Sky Harbour's public statements and investor materials, its major customers fall into the following categories of companies. Below are prominent examples of companies within these categories that represent the typical profile of Sky Harbour's clientele:

• Fractional Ownership and Charter Operators: These companies manage large fleets of private jets, requiring significant hangar infrastructure for basing, maintenance, and operations across various locations. Examples of major players in this category that would typically utilize such services include:
  • NetJets (a subsidiary of Berkshire Hathaway, Symbols: BRK.A, BRK.B)
  • Wheels Up Experience Inc. (Symbol: UP)
  • Flexjet (a private company)
• Corporate Flight Departments: These are internal flight operations managed by corporations that own and operate private jets for executive travel and business purposes. While Sky Harbour does not name specific corporate tenants, these typically represent large public and private companies that maintain their own flight operations.
• Aircraft Management Companies: Firms that specialize in managing, operating, and maintaining private aircraft on behalf of high-net-worth individuals or other corporations. These companies often lease hangar space as part of their comprehensive service offerings. An example of a major player in this category is Jet Aviation (a subsidiary of General Dynamics, Symbol: GD).

It is important to reiterate that while the companies listed above are representative of Sky Harbour's target customer segments, Sky Harbour does not confirm specific tenant relationships publicly.

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Tal Keinan, Chairman and Chief Executive Officer

Tal Keinan co-founded and was the former CEO of Clarity Capital, an investment management firm, and also founded Clarity Capital Group. He served as a partner at the Israeli Private Equity firm Giza in the early 2000s. Mr. Keinan founded Sky Harbour in 2018 and has led the team since its inception in October 2017. Sky Harbour was acquired by Yellowstone Acquisition Co. on January 25, 2022, and he assumed the role of Chairman and CEO on that date. He is also the Chairman of Koret Israel Economic Development Funds, a significant nonprofit lender to small and micro businesses in Israel. Prior to his business career, he was a veteran of the Israeli Air Force, serving for 18 years as an F-16 pilot and air combat instructor, retiring with the rank of Lieutenant Colonel. He holds an MBA from Harvard Business School.

Francisco X. Gonzalez, Chief Financial Officer

Francisco X. Gonzalez is known for his expertise in private activity bonds, having spent 25 years at Goldman Sachs where he was referred to as the "guru" or "rabbi" of private activity bonds. He joined Sky Harbour after having spun himself out to a hedge fund.

Michael W. Schmitt, Chief Accounting Officer

Eric Stolpman, VP, Real Estate

Tim Herr, VP, Finance & Treasurer

Tim Herr has been with Sky Harbour since its inception in 2018. He began his career as a Navy pilot and joined Tal Keinan after attending business school.

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The key risks to Sky Harbour (NYSE: SKYH) are primarily related to its aggressive growth strategy, significant debt burden, and the challenges inherent in its real estate development model.

1. Execution Risk, Development Costs, and Path to Profitability: Sky Harbour is pursuing an ambitious expansion plan, with its growth heavily reliant on the "execution/timing of new campuses" and a "rapid campus rollout." The company is currently "unprofitable with high leverage" and has reported a "TTM net loss of $32.7M" due to substantial "heavy development costs." The firm is "investing heavily to fund its expansion," with approximately "$150–175M of new funding (debt or equity)" planned for 2025 to complete its pipeline of campuses. This highlights the significant risk associated with the company's ability to efficiently manage these development projects, control costs, and ultimately achieve profitability.
2. High Leverage and Financing Dependence: Sky Harbour's balance sheet "carries high leverage (Debt/Equity >200%)", exposing it to "the risk of default under our debt obligations." The company's continued growth is contingent on its "access to external sources of capital, and our ability to obtain financing or access capital markets may be limited." This substantial debt and ongoing need for external funding introduce a significant financial risk to the business.
3. Competition for Prime Airport Land: A core aspect of Sky Harbour's business model is securing "scarce 'buildable land on existing airports' niche." However, the company faces "potential competition over prime airport sites", and its growth strategy "depends in part upon our ability to enter into new ground leases at airports." The ability to continuously acquire suitable land on favorable terms is crucial for its expansion and presents an ongoing operational risk.

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Sky Harbour (NYSE: SKYH) is a real estate development and operating company that specializes in private aviation infrastructure, primarily focusing on developing, leasing, and managing general aviation hangars for business aircraft in the United States. They offer "home-basing hangar campuses" that include private and semi-private hangars, along with a suite of services for aircraft owners and operators, such as private terminals, ground handling, concierge services, and maintenance support.

The addressable market for Sky Harbour's main products and services can be identified within the broader aircraft hangar market, with a specific focus on the private and business aviation sectors.

• The North America Aircraft Hangar Market was valued at approximately USD 346 million in 2023. This market is driven by increasing investments in aviation infrastructure and the growing demand for Maintenance, Repair, and Overhaul (MRO) facilities. North America holds the largest share in the global aircraft hangar market, and the United States alone accounted for over 88.50% of the North American aircraft hangar market in 2024.
• Globally, the private hangar construction market size stood at USD 5.34 billion in 2024 and is projected to reach an estimated USD 9.15 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 6.2%. This growth is fueled by increasing private aircraft ownership and the modernization of aviation infrastructure worldwide.

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1. Expansion of Hangar Campus Network: Sky Harbour is aggressively expanding its footprint across the United States by developing and opening new "Home Base Operator" (HBO) campuses. The company plans to grow its operational campuses from nine to a projected 23 by the end of 2025, with key expansions in major markets such as Phoenix, Dallas, Denver, New York, Florida, and Texas. This significant increase in available hangar space is a primary driver for future revenue.
2. Increased Occupancy and Leasing of New Facilities: As new hangar campuses become operational, the leasing up of these facilities to business jet owners and operators will directly contribute to revenue growth. The company has seen increased revenues from incorporating operations from recent acquisitions, such as the Camarillo campus, and anticipates step-function increases in revenue as new campuses are leased and rental income commences.
3. Higher Rental Rates and Premium Lease Pricing: Sky Harbour expects revenue growth to be driven by higher rental rates upon lease renewals. The company's unique business model, which focuses on high-end, boutique private hangar space at key airports with limited developable land, supports premium lease pricing and robust net margins.
4. Growth in Fuel Sales and Ancillary Services: In addition to hangar rentals, revenue is also generated from fuel sales and other services provided to aircraft owners and visitors. The company's earnings reports indicate growth in both rental and fuel revenues, highlighting the importance of these ancillary offerings.

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Capital Allocation Decisions (Last 3-5 Years) for Sky Harbour (SKYH)

Share Repurchases

• Sky Harbour has shown net common equity repurchases of approximately $3.02 million in 2020, $13.61 million in 2021, $13.68 million in 2022, $25.44 million in 2023, and $53.68 million in 2024.

Share Issuance

• In January 2022, Sky Harbour became a publicly traded company through a business combination with Yellowstone Acquisition Company, a Special Purpose Acquisition Company (SPAC).
• The SPAC transaction provided up to $238 million in gross proceeds, which included $138 million in cash held in trust by Yellowstone Acquisition Company (prior to redemptions) and a $55 million investment from a wholly-owned subsidiary of Boston Omaha Corporation.
• In October 2024, Sky Harbour completed an initial closing of an equity raise (PIPE) issuing 3,955,790 shares for approximately $37.58 million in net proceeds at $9.50 per share, with a second closing for up to an additional $37.58 million scheduled for December 2024, aiming for total proceeds of about $75.2 million.

Inbound Investments

• As part of its SPAC merger in 2022, Boston Omaha Corporation provided a $55 million investment in Sky Harbour Group and committed to a $45 million backstop, totaling a $100 million investment and commitment.
• Sky Harbour raised $75 million in equity from a PIPE offering at the end of 2023.
• The company secured approximately $75.2 million through an equity raise (PIPE) in late 2024, with participation from existing and new long-term investors.

Capital Expenditures

• Sky Harbour's capital expenditures are primarily focused on developing and expanding its network of business aviation hangar campuses across the United States.
• Constructed assets and construction-in-progress reached over $295 million by the end of Q2 2025, showing a year-over-year increase of $125 million.
• The company secured a $200 million tax-exempt warehouse debt facility with J.P. Morgan, expected to fund 5-6 upcoming development projects, and plans to utilize approximately $240 million (from equity raise and anticipated $150 million private activity debt financing) to support initial development phases at 6-7 new airport campuses through 2026.