10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended September 30, 2012

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to ________________

Commission File Number: 000-52593

SAKER AVIATION SERVICES, INC.

(Exact name of registrant as specified in its charter)

Nevada	87-0617649
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
101 Hangar Road, Avoca, PA	18641
(Address of principal executive offices)	(Zip Code)

(570) 457-3400

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes x         No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x         No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule

12b-2 of the Exchange Act.

 Large accelerated filer  o Accelerated filer  o Non-accelerated filer  o Smaller Reporting Company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o          No x

As of November 14, 2012, the registrant had 33,040,422 shares of its common stock, $0.001 par value, issued and outstanding.

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

Form 10-Q

September 30, 2012

Index

PART I - FINANCIAL INFORMATION
	ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS		Page
		Balance Sheets as of September 30, 2012 (unaudited) and December 31, 2011	1
		Statements of Operations for the Three and Nine months ended September 30, 2012 and 2011 (unaudited)	2
		Statements of Cash Flows for the Nine months ended September 30, 2012 and 2011 (unaudited)	3
		Notes to Financial Statements (unaudited)	4
	ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS                 OF OPERATIONS		8
	ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		13
	ITEM 4.  CONTROLS AND PROCEDURES		13
PART II - OTHER INFORMATION
	ITEM 6. EXHIBITS		14
SIGNATURES			15

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS
	September 30, 2012			December 31, 2011
	(unaudited)
CURRENT ASSETS
Cash	$	318,688		$	451,957
Accounts receivable		1,760,312			1,532,673
Inventories		244,930			285,171
Note receivable – current portion, less discount		106,509			101,077
Prepaid expenses and other current assets		468,773			373,385
Deferred income taxes		—			204,000
Total current assets		2,899,212			2,948,263
PROPERTY AND EQUIPMENT, net
of accumulated depreciation and amortization of $1,258,405 and $961,189 respectively		2,367,656			2,539,198
OTHER ASSETS
Deposits		198,368			181,259
Note receivable, less current portion and discount		220,137			300,712
Intangible assets – trade names		135,000			135,000
Goodwill		2,368,284			2,368,284
Total other assets		2,921,789			2,985,255
TOTAL ASSETS	$	8,188,657		$	8,472,716
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	905,987		$	781,675
Customer deposits		132,247			138,756
Lines of credit		—			650,000
Accrued expenses		441,509			385,872
Deferred income taxes		169,150			—
Notes payable – current portion		532,269			488,846
Total current liabilities		2,181,162			2,445,149
LONG-TERM LIABILITIES
Notes payable - less current portion		1,252,826			1,809,902
Total liabilities		3,433,988			4,255,051
STOCKHOLDERS’ EQUITY
Preferred stock - $.001 par value; authorized 9,999,154;
none issued and outstanding		—			—
Common stock - $.001 par value; authorized 100,000,000;
33,040,422 shares issued and outstanding as of September 30, 2012 and December 31, 2011		33,040			33,040
Additional paid-in capital		19,877,366			19,850,134
Accumulated deficit		(15,155,737	)		(15,665,509	)
TOTAL STOCKHOLDERS’ EQUITY		4,754,669			4,217,665
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	8,188,657		$	8,472,716

See notes to condensed consolidated financial statements.

1

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months Ended September 30,						For the Nine months ended September 30,
	2012			2011			2012			2011
REVENUE	$	4,882,781		$	4,643,683		$	12,893,110		$	11,993,660
COST OF REVENUE		2,868,775			2,905,280			7,585,957			7,067,977
GROSS PROFIT		2,014,006			1,738,403			5,307,153			4,925,683
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES		1,557,300			1,327,867			4,219,712			3,963,096
OPERATING INCOME		456,706			410,536			1,087,441			962,587
OTHER INCOME (EXPENSE)
OTHER INCOME (EXPENSE), net		3,864			4,607			39,607			20,780
INTEREST INCOME		6,014			5,642			19,358			24,454
INTEREST EXPENSE		(42,585	)		(39,914	)		(116,634	)		(118,108	)
TOTAL OTHER INCOME (EXPENSE)		(32,707	)		(29,665	)		(57,669	)		(72,874	)
INCOME BEFORE INCOME TAX EXPENSE		423,999			380,871			1,029,772			889,713
INCOME TAX EXPENSE
CURRENT		(71,000	)		(150,000	)		(147,000	)		(243,000	)
DEFERRED		(157,000	)		(86,000	)		(373,000	)		(262,000	)
INCOME TAX EXPENSE		(228,000	)		(236,000	)		(520,000	)		(505,000	)
NET INCOME		195,999			144,871			509,772			384,713
Net income per Common Share – Basic and Diluted	$	0.01		$	0.00		$	0.02		$	0.01
Weighted Average Number of Common Shares
Outstanding – Basic		33,040,422			33,040,422			33,040,422			33,045,420
Weighted Average Number of Common Shares Outstanding – Diluted		34,278,110			34,844,369			34,278,110			34,849,367

See notes to condensed consolidated financial statements.

2

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine months ended September 30,
	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	509,772		$	384,713
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		297,216			259,551
Management fee recorded through additional paid in capital		—			745,669
Loss on dispositions of equipment		—			2,799
Stock based compensation		27,232			5,247
Changes in operating assets and liabilities:
Accounts receivable		(227,639	)		(376,158	)
Inventories		40,241			(6,939	)
Prepaid expenses and other current assets		(95,388	)		41,828
Deposits		(17,109	)		275,105
Deferred income taxes		373,150			250,631
Accounts payable		124,312			407,205
Customer deposits		(6,509	)		(53,696	)
Accrued expenses		55,637			(1,255,691	)
TOTAL ADJUSTMENTS		571,143			295,551
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,080,915			680,264
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposition of equipment		—			65,247
Payment of note receivable		75,143			70,077
Purchase of property and equipment		(125,674	)		(917,885	)
NET CASH USED IN INVESTING ACTIVITIES		(50,531	)		(782,561	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable		(513,653	)		(809,305	)
Purchase of common stock, retired		—			(11,989	)
Line of credit, net		—			150,000
Repayment of line of credit		(650,000	)		—
Redemption of non-controlling interest		—			(476,995	)
NET CASH USED IN FINANCING ACTIVITIES		(1,163,653	)		(1,148,289	)
NET CHANGE IN CASH		(133,269	)		(1,250,586	)
CASH – Beginning		451,957			1,541,992
CASH – Ending	$	318,688		$	291,406
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the periods for:
Interest	$	116,634		$	118,108
Income Taxes	$	146,796		$	253,608
SUPPLEMENTAL DISCLOSURE OF NON-CASH FLOW INFORMATION
Increase in notes payable for the redemption of non-controlling interest	$	—		$	1,956,952

 See notes to condensed consolidated financial statements.

3

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial statements and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and disclosures required for annual financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statements and related footnotes for Saker Aviation Services, Inc. and its subsidiaries (collectively, the “Company”), which appear in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission.

The condensed consolidated balance sheet as of September 30, 2012 and the condensed consolidated statements of operations and cash flows for the nine months ended September 30, 2012 and 2011 have been prepared by the Company without audit. In the opinion of the Company’s management, all adjustments (consisting of normal recurring accruals) necessary to make the Company’s financial position as of September 30, 2012 and its results of operations and cash flows for the three and nine months ended September 30, 2012 not misleading have been included. The results of operations for the three and nine months ended September 30, 2012 are not necessarily indicative of the results to be expected for any full year or any other interim period.

The Company has evaluated subsequent events which have occurred after September 30, 2012.

NOTE 2 – Management’s Liquidity Plans

As of September 30, 2012, the Company had cash of $318,688 and had a working capital surplus of $718,050. The Company generated revenue of $12,893,110 and net income of $509,772 for the nine months ended September 30, 2012.

Effective January 30, 2012, the Company entered into an amended and restated Loan Agreement (the “Amended and Restated Loan Agreement”) with Bank of America. The Amended and Restated Loan Agreement increased the Company’s revolving credit facility (“B of A Credit Facility”) to $1,150,000. No amounts were outstanding under the B of A Credit Facility as of September 30, 2012.

The B of A Credit Facility requires interest payments based on outstanding balances at an interest rate calculated using the 30-day LIBOR rate plus 300 basis points, and is annually renewable at Bank of America’s option. An annual fee of 0.50% of the total availability of the B of A Credit Facility is also incurred.

On September 21, 2011, the Company entered into an agreement with Bank of America whereby the bank established an equipment line of credit for up to $130,000. On May 1, 2012, the principal amount drawn by the company against this line of credit of $118,703 was converted into a term loan (the “B of A Equipment Loan”). The B of A Equipment Loan is being amortized over five years and bears interest at a rate equal to the bank’s prime rate plus 1.5 %.

On July 20, 2011, the Company entered into a loan agreement with Bank of America that provided the Company with a $318,198 term loan facility (the “B of A Term Loan”). The B of A Term Loan is being amortized over 48 months, bears interest at a rate of 4.2% and matures on July 20, 2015. A one-time origination fee of 1.0% was incurred at the commencement of the B of A Term Loan.

The Company is party to a concession agreement with the City of New York for the operation of the Downtown Manhattan Heliport (the “Heliport”), which expires on October 31, 2018. Under this agreement, the Company must pay the greater of 18% of the first $5 million in program year gross receipts and 25% of gross receipts in excess of $5 million or minimum annual guaranteed payments that began at $1.2 million in Year 1 of the agreement, which commenced on November 1, 2008, and increase to approximately $1.7 million in Year 10 of the agreement. During the nine months ended September 30, 2012, the Company incurred approximately $1,560,000 in concession fees with the City of New York, which are recorded as cost of revenue.

NOTE 3 - Summary of Significant Accounting Policies

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC d/b/a Saker Aviation Services (“FFH”), FBO Air Wilkes-Barre, Inc. d/b/a Saker Aviation Services (“FBOWB”), and FBO Air Garden City, Inc. d/b/a Saker Aviation Services (“FBOGC”). All significant inter-company accounts and transactions have been eliminated in consolidation.

4

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Reclassifications

Certain reclassifications were made to the prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income or loss in any period.

Net Income Per Common Share

Net income for the three and nine months ended September 30, 2012 was $195,999 and $509,772, respectively, and net income for the three and nine months ended September 30, 2011 was $144,871 and $384,713, respectively. Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices are greater than the average market price of the common stock during the period. 

The following table sets forth the components used in the computation of basic net income per share:

	For the Three Months Ended September 30,				For the Nine months ended September 30,
	2012*		2011*		2012*		2011*
Weighted average common shares outstanding, basic		33,040,422		33,040,422		33,040,422		33,045,420
Common shares upon exercise of options		1,237,688		1,803,947		1,237,688		1,803,947
Weighted average common shares outstanding, diluted		34,278,110		34,844,369		34,278,110		34,849,367

* Outstanding stock options and warrants aggregating 1,050,000 and 900,000 for the three and nine months ended September 30, 2012 and 2011, respectively, were excluded from the computation of diluted earnings per share as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2012 and 2011, respectively.

Stock Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the grant-date fair value. The Company recognizes these compensation costs over the requisite service period of the award, which is generally the option vesting term. For

the nine months ended September 30, 2012 and 2011, the Company incurred stock-based compensation of $27,232 and $5,247, respectively. Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. As of September 30, 2012, the unamortized fair value of such options totaled $4,500.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. Because the Company's employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options.

Recently Issued Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. ASU 2011-08 is effective for the Company in the year ending December 31 2013 and earlier adoption is permitted. The Company has adopted ASU 2011-08 on its consolidated financial statements.

5

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 4 - Inventories

Inventories consist primarily of maintenance parts and aviation fuel, which the Company sells to its customers. The Company also maintains fuel inventories for commercial airline use and charges into-plane fees when servicing commercial aircraft. A summary of inventories as of September 30, 2012 and December 31, 2011 is set forth in the following table:

	September 30, 2012		December 31, 2011
Parts inventory	$	99,377	$	105,162
Fuel inventory		134,313		167,540
Other inventory		11,239		12,469
Total inventory	$	244,930	$	285,171

Included in inventories are amounts held for third parties of $116,728 and $173,023 as of September 30, 2012 and December 31, 2011, respectively, with an offsetting liability included as part of accrued expenses.

NOTE 5 - Stockholders’ Equity

Stock Options

Details of all options outstanding are presented in the table below:

	Number of Options			Weighted Average Exercise Price
Balance, January 1, 2012		1,675,000		$	0.14
Granted		100,000			0.05
Exercised		—			—
Forfeited		(350,000	)		0.38
Balance, September 30, 2012		1,425,000		$	0.08
Exercisable at September 30, 2012		425,000		$	0.08

On June 1, 2012, the Company granted an employee a stock option under the Plan to purchase 100,000 shares of common stock at $0.05 per share, the closing price of the Company’s common stock on May 31, 2012. Fifty-thousand shares subject to such option vest on December 31, 2012 and the remaining 50,000 shares vest on December 31, 2013. This option is valued at $5,000 and is being amortized over the vesting period.

On April 17, 2012, four sets of options of 25,000 shares each, representing a total of 100,000 shares, expired.

On April 1, 2012, an option for 250,000 shares expired.

NOTE 6 – Related Parties

The law firm of Wachtel & Masyr, LLP provides certain legal services to the Company. William B. Wachtel, the Company’s Chairman of the Board of Directors, is a managing partner of this firm. During the nine months ended September 30, 2012 and 2011, the Company was billed approximately $0 for legal services. At September 30, 2012 and December 31, 2011, the Company has recorded in accounts payable an obligation for legal fees to such firm of approximately $250 related to legal services provided by such firm.

6

SAKER AVIATION SERVICES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

On August 29, 2011, the Company entered into a Redemption Agreement with the non-controlling interest in a subsidiary of the Company. As part of this agreement, the non-controlling interest relinquished its membership interest in the subsidiary in return for earn-out payments of the non-controlling interest’s capital account of $2,769,000. Of that amount, $444,000 was paid upon the execution of the Redemption Agreement, an additional approximately $808,000 has been paid through September 30, 2012. The balance is recorded as a liability at a discount rate of 7%. Continuing earn-out payments shall continue to be made on a monthly basis in an amount equal to (i) 5% of the subsidiary’s gross receipts, plus (ii) 5% of the subsidiary’s pre-tax profit.

NOTE 7 - Litigation

From time to time in the normal course of its business, the Company may be a party to one or more claims or disputes which may result in litigation. The Company's management does not, however, presently expect that any such matters, either individually or in the aggregate, will have a material adverse effect on the Company's business, financial condition or results of operations.

7

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read together with the condensed consolidated financial statements and related notes appearing in Item 1 of this report. This Item 2 contains forward-looking statements that involve risks and uncertainties. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date of this report. Actual results may differ materially from those included in such forward-looking statements. Factors which could cause actual results to differ materially include those set forth at the end of this Item 2 under the heading "Cautionary Statement Regarding Forward Looking Statements," those discussed elsewhere in this report and those discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

OVERVIEW

Saker Aviation Services, Inc. (“we”, “us”, “our”) is a Nevada corporation, the common stock, $0.001 par value per share (the “common stock”), of which is publicly traded on the OTCQB Marketplace under the symbol “SKAS”. Through our subsidiaries, we operate in the fixed base operation (“FBO”) segment of the general aviation industry. We serve as the operator of a heliport FBO, two primarily fixed-wing aircraft FBOs and provide consulting services for an FBO facility that we do not own. FBOs provide ground-based services, such as fueling and aircraft storage for general aviation, commercial and military aircraft; aircraft maintenance; as well as other miscellaneous services.

We were formed on January 17, 2003 (our date of inception) as a proprietorship and were incorporated in Arizona on January 2, 2004. We became a public company as a result of a reverse merger transaction on August 20, 2004 with Shadows Bend Development, Inc., an inactive public Nevada corporation and subsequently changed our name to FBO Air, Inc. On December 12, 2006, we changed our name to FirstFlight, Inc. On September 2, 2009, we changed our name to Saker Aviation Services, Inc.

Our business activities are carried out as an FBO at the Wilkes-Barre/Scranton (Pennsylvania) International Airport, as an FBO at the Garden City (Kansas) Regional Airport, as the FBO and operator of the Downtown Manhattan (New York) Heliport, and as a consultant to the FBO and operator of the Niagara Falls (New York) International Airport.

The Wilkes-Barre facility became part of our company as a result of our acquisition of Tech Aviation Service, Inc. (“Tech”) in March 2005. The Garden City facility became part of our company as a result of our acquisition of the FBO assets of Central Plains Aviation, Inc. (“CPA”) in March 2005.

The New York heliport facility became part of our company through the award of a concession agreement by the City of New York to operate the Downtown Manhattan Heliport, which was assigned to our subsidiary, FirstFlight Heliports, LLC d/b/a Saker Aviation Services (“FFH”).

The FBO segment of the general aviation industry is highly fragmented. According to the National Air Transportation Association (“NATA”), the industry is populated by over 3,000 operators that serve customers at one or more of over 3,000 airport facilities across the country that have at least one paved 3,000-foot runway. The vast majority of these companies are single location operators. NATA characterizes companies with operations at three or more airports as “chains.” An operation with FBOs in at least two distinctive regions of the country is considered a “national” chain while multiple locations within a single region are considered “regional” chains.

REVENUE AND OPERATING RESULTS

Comparison of the Three and Nine months ended September 30, 2012 and September 30, 2011.

8

REVENUE

Revenue increased by 5.1 percent to $4,882,781 for the three months ended September 30, 2012 as compared with corresponding prior-year period revenue of $4,643,683. For the nine months ended September 30, 2012, revenue increased by 7.5 percent to $12,893,110 as compared with revenue of $11,993,660 in the same period in the prior year.

For the three months ended September 30, 2012, revenue associated with the sale of jet fuel, aviation gasoline and related items increased by 3.0 percent to approximately $2,600,000 as compared to approximately $2,500,000 in the three months ended September 30, 2011. The increase was related to a combination of higher volume of gallons along with higher average fuel prices as compared with the prior year. We generally price our fuel products on a fixed dollar margin basis. As the cost of fuel increases, the corresponding customer price increases as well. If volume is constant, this methodology yields higher revenue but at comparable gross margins.

For the three months ended September 30, 2012, revenue associated with services and supply items increased by 7.6 percent to approximately $2,200,000 as compared to approximately $2,100,000 in the three months ended September 30, 2011. The increase was driven by higher levels of activity and related revenue in Heliport operations, which offset a decrease in maintenance activity and related revenue in the three months ended September 30, 2012 as compared to the same period in the prior year.

For the three months ended September 30, 2012, all other revenue increased by 11.4 percent to approximately $68,000 as compared to approximately $61,000 in the three months ended September 30, 2011.

For the nine months ended September 30, 2012, revenue associated with the sale of jet fuel, aviation gasoline and related items increased by 12.3 percent to approximately $7,000,000 as compared to approximately $6,200,000 in the nine months ended September 30, 2011. The increase was related to a combination of a higher volume of gallons along with higher average fuel prices as compared with the prior year.

For the nine months ended September 30, 2012, revenue associated with services and supply items increased by 2.0 percent to approximately $5,800,000 as compared to approximately $5,700,000 in the nine months ended September 30, 2011.

For the nine months ended September 30, 2012, all other revenue increased by 19.7 percent to approximately $164,000 as compared to approximately $137,000 in the nine months ended September 30, 2011.

GROSS PROFIT

Total gross profit increased 15.9 percent to $2,014,006 in the three months ended September 30, 2012 as compared with the three months ended September 30, 2011. Gross profit as a percent of revenue increased to 41.2 percent in the three months ended September 30, 2012 as compared to 37.4 percent in the same period in the prior year. The increase in gross margin is related to a higher mix of service and supply gross profit, which generally carries a higher margin as compared to fuel and related gross profit.

Total gross profit increased 7.7 percent to $5,307,153 in the nine months ended September 30, 2012 as compared with the nine months ended September 30, 2011. Gross profit as a percent of revenue was essentially flat at 41.2 percent in the nine months ended September 30, 2012 as compared to 41.1 percent in the same period in the prior year.

OPERATING EXPENSE

Selling, General and Administrative

Total selling, general and administrative (“SG&A”) expenses were $1,557,300 in the three months ended September 30, 2012, an increase of approximately $229,000 or 17.3 percent, as compared to the same period in 2011. Personnel expense drove the increase as additional headcount were added to handle the additional volume and activity.

9

SG&A associated with our FBO operations was approximately $1,500,000 in the three months ended September 30, 2012, an increase of approximately $214,000, or 16.7 percent, as compared to the three months ended September 30, 2011. SG&A associated with our FBO operations as a percentage of revenue was 30.6 percent for the three months ended September 30, 2012, as compared with 27.5 percent in the corresponding prior year period.

Corporate SG&A was approximately $65,000 for the three months ended September 30, 2012, representing an increase of approximately $16,000 as compared with the corresponding prior year period.

Total SG&A was $4,219,711 in the nine months ended September 30, 2012, an increase of approximately $256,000 or 6.5 percent, as compared to the same period in 2011. Personnel expense drove the increase as additional headcount were added to handle the additional volume and activity.

SG&A associated with our FBO operations were approximately $4,000,000 in the nine months ended September 30, 2012, an increase of approximately $241,000, or 6.4 percent, as compared to the nine months ended September 30, 2011. SG&A associated with our FBO operations as a percentage of revenue was 31.2 percent for the six and nine months ended September 30, 2012, as compared with 31.5 percent in the corresponding prior year period.

Corporate SG&A was approximately $196,000 for the nine months ended September 30, 2012, an increase of approximately $16,000, or 8.8 percent, as compared to the corresponding prior year period.

OPERATING INCOME

Operating income for the three and nine months ended September 30, 2012 was $456,706 and $1,087,441, respectively, as compared to $410,536 and $962,587 in the three and nine months ended September 30, 2011, respectively. Improvements on a year-over-year basis were driven by a combination of higher levels of revenue leading to increased gross profit, which offset higher SG&A, as described above.

Depreciation and Amortization

Depreciation and amortization was approximately $298,000 and $260,000 for the nine months ended September 30, 2012 and 2011, respectively. The increase was largely attributed to the depreciation recorded in connection with the capital improvement program at the Heliport, as described in our Annual Report on Form 10-K for the year ended December 31, 2011.

Interest Income/Expense

Interest income for the three and nine months ended September 30, 2012 was $6,014 and $19,358, respectively, as compared to $5,642 and $24,454 in three and nine months ended September 30, 2011, respectively. Interest expense for the three and nine months ended September 30, 2012 was $42,585 and $116,634, respectively, as compared to $39,914 and $118,108 in the same periods in 2011.

Income Tax

Income tax expense for the three and nine months ended September 30, 2012 was $228,000 and $520,000, respectively, as compared to $236,000 and $505,000, respectively, for the three and nine months ended September 30, 2011.

Net Income Per Share

Net income for the three and nine months ended September 30, 2012 was $195,999 and $509,772, respectively. Net income for the three and nine months ended September 30, 2011 was $144,871 and $384,713, respectively.

Basic and diluted net income per share for the three and nine months ended September 30, 2012 was $0.01 and $0.02, respectively. Basic and diluted net income per share for the three and nine months ended September 30, 2011 was $0.00 and $0.01, respectively.

10

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2012, we had cash of $318,688 and had a working capital surplus of $718,050. We generated revenue of $12,893,110 and net income of $509,772 for the nine months ended September 30, 2012.

Effective January 30, 2012, we entered into an amended and restated Loan Agreement (the “Amended and Restated Loan Agreement”) with Bank of America. The Amended and Restated Loan Agreement increased our revolving credit facility (“B of A Credit Facility”) to $1,150,000. No amounts were outstanding under the B of A Credit Facility as of September 30, 2012.

The B of A Credit Facility requires interest payments based on outstanding balances at an interest rate calculated using the 30-day LIBOR rate plus 300 basis points, and is annually renewable at Bank of America’s option. An annual fee of 0.50% of the total availability of the B of A Credit Facility is also incurred.

On September 21, 2011, we entered into an agreement with Bank of America whereby the bank established an equipment line of credit for up to $130,000. On May 1, 2012, the principal amount drawn by the company against this line of credit of $118,703 was converted into a term loan (the “B of A Equipment Loan”). The B of A Equipment Loan is being amortized over five years and bears interest at a rate equal to the bank’s prime rate plus 1.5 %.

On July 20, 2011, we entered into a loan agreement with Bank of America that provided us with a $318,198 term loan facility (the “B of A Term Loan”). The B of A Term Loan is being amortized over 48 months, bears interest at a rate of 4.2% and matures on July 20, 2015. A one-time origination fee of 1.0% was incurred at the commencement of the B of A Term Loan.

We are party to a concession agreement with the City of New York for the operation of the Downtown Manhattan Heliport (the “Heliport”), which expires on October 31, 2018. Under this agreement, we must pay the greater of 18% of the first $5 million in program year gross receipts and 25% of gross receipts in excess of $5 million or minimum annual guaranteed payments that began at $1.2 million in Year 1 of the agreement, which commenced on November 1, 2008, and increase to approximately $1.7 million in Year 10 of the agreement. During the nine months ended September 30, 2012, we incurred with the City of New York approximately $1,560,000 in concession fees, which are recorded in the cost of revenue.

During the nine months ended September 30, 2012, we had a net decrease in cash of $133,269. Our sources and uses of funds during this period were as follows:

Cash from Operating Activities

For the nine months ended September 30, 2012, net cash provided by operating activities was $1,080,915. This amount included an increase in operating cash related to net income of $509,772 and additions for the following items: (i) depreciation and amortization, $297,216; (ii) stock-based compensation expense, $27,232; (iii) inventories, $40,241; (iv) deferred income taxes, $373,150; (iv) accounts payable, $124,312; and (vii) accrued expenses, $55,637. The increase in cash provided by operating activities in 2012 was offset by the following items: (i) accounts receivable, $227,639; (ii) prepaid expenses, $95,388; (iii) deposits, $17,109; (iv) and customer deposits, $6,509. For the nine months ended September 30, 2011, net cash provided by operating activities was $680,264. This amount included an increase in operating cash related to net income of $384,713 and additions for the following items: (i) depreciation and amortization, $259,551; (ii) management fees recorded through additional paid in capital, $745,669; (iii) stock-based compensation expense, $5,247; (iv) accounts payable, $407,205; (v) deposits, $275,105; (vi) deferred income taxes, $250,631; (vii) prepaid expenses, $41,828; and (viii) loss on disposition of equipment, $2,799. The increase in cash used in operating activities in 2011 was offset by the following items: (i) accounts receivable, $376,158; (ii) inventories, $6,939; (iii) customer deposits, $53,696; and (v) accrued expenses, $1,255,691.

11

Cash from Investing Activities

For the nine months ended September 30, 2012, net cash used in investing activities was $50,531 and was attributable to the purchase of property and equipment of $125,674 offset by the repayment of notes receivable of $75,143. For the nine months ended September 30, 2011, net cash used in investing activities was $782,561 and was attributable to the purchase of property and equipment, $917,885 offset by the payment of notes receivable of $70,077; and (iv) proceeds from the disposition of equipment of $65,247.

Cash from Financing Activities

For the nine months ended September 30, 2012, net cash used in financing activities was $1,163,653, consisting of the repayment of notes payable, $513,653, and the repayment of line of credit, $650,000. For the nine months ended September 30, 2011, net cash used in financing activities was $1,148,289, consisting of (i) the redemption of non-controlling interest, $476,995; (ii) the repayment of notes payable, $809,305; and (iii) purchase of common stock, retired, $11,989; offset by (iv) line of credit, net, $150,000.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Recent Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. ASU 2011-08 is effective for us in the year ended December 31, 2013 and earlier adoption is permitted. We have adopted ASU 2011-08 on our consolidated financial statements.

12

CAUTIONARY STATEMENT FOR FORWARD-LOOKING STATEMENTS

Statements contained in this report may contain information that includes or is based upon "forward-looking statements" relating to our business. These forward-looking statements represent management's current judgment and assumptions, and can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are frequently accompanied by the use of such words as "anticipates," "plans," "believes," "expects," "projects," "intends," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, but not limited to, those relating to:

§ our ability to secure the additional debt or equity financing, if required, to execute our business plan;

§ our ability to identify, negotiate and complete the acquisition of targeted operators, consistent with our business plan;

§ existing or new competitors consolidating operators ahead of us;

§ our ability to attract new personnel or retain existing personnel, which would adversely affect implementation of our overall business strategy.

Any one of these or other risks, uncertainties, other factors, or any inaccurate assumptions made by the Company may cause actual results to be materially different from those described herein or elsewhere by us. Undue reliance should not be replaced on any such forward-looking statements, which speak only as of the date they were made. Certain of these risks, uncertainties, and other factors are described in greater detail in our Annual Report on Form 10-K for the year ended December 31, 2011 and in other filings we make with the Securities and Exchange Commission. Subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above and elsewhere in our reports filed with the Securities and Exchange Commission. We expressly disclaim any intent or obligation to update any forward-looking statements.

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4 – Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management, including our President, Chief Executive Officer and principal financial officer (the same executive is both our principal executive officer and principal financial officer), has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon, and as of the date of that evaluation, our President, Chief Executive Officer and principal financial officer concluded that the disclosure controls and procedures were effective, in all material respects, to ensure that information required to be disclosed in the reports filed and submitted by us under the Securities Exchange Act of 1934, as amended, is (i) recorded, processed, summarized and reported as and when required, and (ii) is accumulated and communicated to our management, including our President, Chief Executive Officer and principal financial officer, as appropriate.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

13

PART II – OTHER INFORMATION

Item 6.  Exhibits

Exhibit Nto.	Description of Exhibit
31.1	Rule 13a-14(a)/15d-14(a) Certification of President and Chief Executive Officer (principal executive and principal financial officer). *
32.1	Section 1350 Certification. *

* Filed herewith

** 101.INS	XBRL Instance Document
**101.SCH	XBRL Taxonomy Extension Schema Document
**101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
**101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
**101.LAB	XBRL Taxonomy Extension Label Linkbase Document
**101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

** Pursuant to Rule 406T of Regulation S-T, the information in this exhibit shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement, prospectus or other document filed under the Securities Act of 1933, or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in such filings.

14

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Saker Aviation Services, Inc.
Date:November 14, 2012	By:	/s/ Ronald J. Ricciardi
		Ronald J. Ricciardi President and Chief Executive Officer

15

EX-31.1

EXHIBIT 31.1

Certification of President and Chief Executive Officer (principal executive and financial officer)

Pursuant To Rule 13a-14(a)/15d-14(a)

I, Ronald J. Ricciardi, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Saker Aviation Services, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2012

By:  /s/ Ronald J. Ricciardi                                                    

Ronald J. Ricciardi

President and Chief Executive Officer (principal executive and financial officer)

EX-32.1

EXHIBIT 32.1

Section 1350 Certification

Pursuant to U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), Ronald J. Ricciardi, the President and Chief Executive Officer (principal executive officer and principal financial officer) of Saker Aviation Services, Inc. does hereby certify that:

1.   The Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 (the “Report”) of Saker Aviation Services, Inc. fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of Saker Aviation Services, Inc.

Date:November 14, 2012	By:	/s/ Ronald J. Ricciardi
		Ronald J. Ricciardi
		President and Chief Executive Officer (principal executive and financial officer)

A signed original of this written statement required by Section 906 has been provided to Saker Aviation Services, Inc. and will be retained by Saker Aviation Services, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

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Inventories

9 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE 4 - Inventories

Inventories consist primarily of maintenance parts and aviation fuel, which the Company sells to its customers. The Company also maintains fuel inventories for commercial airline use and charges into-plane fees when servicing commercial aircraft. A summary of inventories as of September 30, 2012 and December 31, 2011 is set forth in the following table:

	September 30, 2012		December 31, 2011
Parts inventory	$	99,377	$	105,162
Fuel inventory		134,313		167,540
Other inventory		11,239		12,469
Total inventory	$	244,930	$	285,171

Included in inventories are amounts held for third parties of $116,728 and $173,023 as of September 30, 2012 and December 31, 2011, respectively, with an offsetting liability included as part of accrued expenses.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 3 - Summary of Significant Accounting Policies

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC d/b/a Saker Aviation Services (“FFH”), FBO Air Wilkes-Barre, Inc. d/b/a Saker Aviation Services (“FBOWB”), and FBO Air Garden City, Inc. d/b/a Saker Aviation Services (“FBOGC”). All significant inter-company accounts and transactions have been eliminated in consolidation.

Reclassifications

Certain reclassifications were made to the prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income or loss in any period.

Net Income Per Common Share

Net income for the three and nine months ended September 30, 2012 was $195,999 and $509,772, respectively, and net income for the three and nine months ended September 30, 2011 was $144,871 and $384,713, respectively. Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices are greater than the average market price of the common stock during the period. 

The following table sets forth the components used in the computation of basic net income per share:

	For the Three Months Ended September 30,				For the Nine months ended September 30,
	2012*		2011*		2012*		2011*
Weighted average common shares outstanding, basic		33,040,422		33,040,422		33,040,422		33,045,420
Common shares upon exercise of options		1,237,688		1,803,947		1,237,688		1,803,947
Weighted average common shares outstanding, diluted		34,278,110		34,844,369		34,278,110		34,849,367

* Outstanding stock options and warrants aggregating 1,050,000 and 900,000 for the three and nine months ended September 30, 2012 and 2011, respectively, were excluded from the computation of diluted earnings per share as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2012 and 2011, respectively.

Stock Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the grant-date fair value. The Company recognizes these compensation costs over the requisite service period of the award, which is generally the option vesting term. For

the nine months ended September 30, 2012 and 2011, the Company incurred stock-based compensation of $27,232 and $5,247, respectively. Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. As of September 30, 2012, the unamortized fair value of such options totaled $4,500.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. Because the Company's employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options.

Recently Issued Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. ASU 2011-08 is effective for the Company in the year ending December 31 2013 and earlier adoption is permitted. The Company has adopted ASU 2011-08 on its consolidated financial statements.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Cash	$ 318,688	$ 451,957
Accounts receivable	1,760,312	1,532,673
Inventories	244,930	285,171
Note receivable - current portion, less discount	106,509	101,077
Prepaid expenses and other current assets	468,773	373,385
Deferred income taxes	0	204,000
Total current assets	2,899,212	2,948,263
of accumulated depreciation and amortization of $1,258,405 and $961,189 respectively	2,367,656	2,539,198
OTHER ASSETS
Deposits	198,368	181,259
Note receivable, less current portion and discount	220,137	300,712
Intangible assets - trade names	135,000	135,000
Goodwill	2,368,284	2,368,284
Total other assets	2,921,789	2,985,255
TOTAL ASSETS	8,188,657	8,472,716
LIABILITIES AND STOCKHOLDERS EQUITY
Accounts payable	905,987	781,675
Customer deposits	132,247	138,756
Lines of credit	0	650,000
Accrued expenses	441,509	385,872
Deferred income taxes	169,150	0
Notes payable - current portion	532,269	488,846
Total current liabilities	2,181,162	2,445,149
LONG-TERM LIABILITIES
Notes payable - less current portion	1,252,826	1,809,902
Total liabilities	3,433,988	4,255,051
STOCKHOLDER'S EQUITY
Preferred stock - $.001 par value; authorized 9,999,154; none issued and outstanding	0	0
Common stock - $.001 par value; authorized 100,000,000; 33,040,422 shares issued and outstanding as of September 30, 2012 and December 31, 2011	33,040	33,040
Additional paid-in capital	19,877,366	19,850,134
Accumulated deficit	(15,155,737)	(15,665,509)
TOTAL STOCKHOLDERS' EQUITY	4,754,669	4,217,665
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 8,188,657	$ 8,472,716

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Basis of Presentation

9 Months Ended

Sep. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial statements and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and disclosures required for annual financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statements and related footnotes for Saker Aviation Services, Inc. and its subsidiaries (collectively, the “Company”), which appear in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission.

The condensed consolidated balance sheet as of September 30, 2012 and the condensed consolidated statements of operations and cash flows for the nine months ended September 30, 2012 and 2011 have been prepared by the Company without audit. In the opinion of the Company’s management, all adjustments (consisting of normal recurring accruals) necessary to make the Company’s financial position as of September 30, 2012 and its results of operations and cash flows for the three and nine months ended September 30, 2012 not misleading have been included. The results of operations for the three and nine months ended September 30, 2012 are not necessarily indicative of the results to be expected for any full year or any other interim period.

The Company has evaluated subsequent events which have occurred after September 30, 2012.

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Stockholders' Equity (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Number of Options, Balance, January 1, 2012	1,675,000
Number of Options, Granted	100,000
Number of Options, Exercised	0
Number of Options, Forfeited	(350,000)
Number of Options, Balance, September 30, 2012	1,425,000
Number of Options Exercisable at September 30, 2012	425,000
Weighted Average Exercise Price, Balance, January 1, 2012	$ 0.14
Weighted Average Exercise Price, Granted	$ 0.05
Weighted Average Exercise Price, Exercised	$ 0
Weighted Average Exercise Price, Forfeited	$ 0.38
Weighted Average Exercise Price, Balance, September 30, 2012	$ 0.08
Weighted Average Exercise Price, Exercisable at September 30, 2012	$ 0.08

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Related Parties (Details Textual) (USD $)	1 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended
	Aug. 29, 2012	Sep. 30, 2012 Accounts Payable [Member]	Dec. 31, 2011 Accounts Payable [Member]	Sep. 30, 2012 Wachtel & Masyr, LLP [Member]	Sep. 30, 2011 Wachtel & Masyr, LLP [Member]
Legal Fees		$ 250	$ 250	$ 0	$ 0
Repurchase of Non-Controlling Interest in Subsidiary	2,769,000
Payments For Execution Of Redemption Agreement	444,000
Additional Payments For Execution Of Redemption Agreement	$ 808,000
Percentage Of Discount Rate For Liability Incurred In Redemption Agreement	7.00%
Continuing Earn-Out Payments Terms	Continuing earn-out payments shall continue to be made on a monthly basis in an amount equal to (i) 5% of the subsidiary’s gross receipts, plus (ii) 5% of the subsidiary’s pre-tax profit.

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Management's Liquidity Plans

9 Months Ended

Sep. 30, 2012

Going Concern [Abstract]

Going Concern Disclosure [Text Block]

NOTE 2 – Management’s Liquidity Plans

As of September 30, 2012, the Company had cash of $318,688 and had a working capital surplus of $718,050. The Company generated revenue of $12,893,110 and net income of $509,772 for the nine months ended September 30, 2012.

Effective January 30, 2012, the Company entered into an amended and restated Loan Agreement (the “Amended and Restated Loan Agreement”) with Bank of America. The Amended and Restated Loan Agreement increased the Company’s revolving credit facility (“B of A Credit Facility”) to $1,150,000. No amounts were outstanding under the B of A Credit Facility as of September 30, 2012.

The B of A Credit Facility requires interest payments based on outstanding balances at an interest rate calculated using the 30-day LIBOR rate plus 300 basis points, and is annually renewable at Bank of America’s option. An annual fee of 0.50% of the total availability of the B of A Credit Facility is also incurred.

On September 21, 2011, the Company entered into an agreement with Bank of America whereby the bank established an equipment line of credit for up to $130,000. On May 1, 2012, the principal amount drawn by the company against this line of credit of $118,703 was converted into a term loan (the “B of A Equipment Loan”). The B of A Equipment Loan is being amortized over five years and bears interest at a rate equal to the bank’s prime rate plus 1.5 %.

On July 20, 2011, the Company entered into a loan agreement with Bank of America that provided the Company with a $318,198 term loan facility (the “B of A Term Loan”). The B of A Term Loan is being amortized over 48 months, bears interest at a rate of 4.2% and matures on July 20, 2015. A one-time origination fee of 1.0% was incurred at the commencement of the B of A Term Loan.

The Company is party to a concession agreement with the City of New York for the operation of the Downtown Manhattan Heliport (the “Heliport”), which expires on October 31, 2018. Under this agreement, the Company must pay the greater of 18% of the first $5 million in program year gross receipts and 25% of gross receipts in excess of $5 million or minimum annual guaranteed payments that began at $1.2 million in Year 1 of the agreement, which commenced on November 1, 2008, and increase to approximately $1.7 million in Year 10 of the agreement. During the nine months ended September 30, 2012, the Company incurred approximately $1,560,000 in concession fees with the City of New York, which are recorded as cost of revenue.

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CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2012	Dec. 31, 2011
Accumulated Depreciation Depletion and Amortization Property Plant and Equipment	$ 1,258,405	$ 961,189
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized	9,999,154	9,999,154
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized	100,000,000	100,000,000
Common stock, shares issued	33,040,422	33,040,422
Common stock, shares outstanding	33,040,422	33,040,422

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Management's Liquidity Plans (Details Textual) (USD $)	3 Months Ended		9 Months Ended				9 Months Ended					9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Sep. 30, 2012 Concession Agreement [Member]	Sep. 30, 2012 B Of A Equipment Loan [Member]	Sep. 30, 2012 B Of A Term Loan [Member]	May 01, 2012 B Of A Term Loan [Member]	Jul. 20, 2011 B Of A Term Loan [Member]	Sep. 30, 2012 B Of A Credit Facility [Member]	Jan. 30, 2012 B Of A Credit Facility [Member]	Sep. 21, 2011 Equipment Line Of Credit [Member]
Cash	$ 318,688	$ 291,406	$ 318,688	$ 291,406	$ 451,957	$ 1,541,992
Working Capital	718,050		718,050
Revenue, Net	4,882,781	4,643,683	12,893,110	11,993,660
Net Income (Loss) Attributable To Parent	195,999	144,871	509,772	384,713
Line of Credit Facility, Maximum Borrowing Capacity													1,150,000	130,000
Line of Credit Facility, Remaining Borrowing Capacity												0
Line of Credit Facility, Interest Rate Description												LIBOR plus 300 basis points
Line of Credit Facility, Commitment Fee Percentage												0.50%
Conversion Of Line Of Credit In To Term Loan										118,703
Debt Instrument, Description of Variable Rate Basis								prime rate plus 1.5%
Debt Instrument Amortization Peiod								5 years	48 months
Long-term Debt, Gross											318,198
Debt Instrument, Interest Rate, Stated Percentage											4.20%
Debt Instrument Origination Fee Percentage									1.00%
Debt Instrument, Maturity Date									Jul. 20, 2015
Percentage Payable Greater Than Gross Receipts During Period							18.00%
Amount Of Gross Receipts During Period							5,000,000
Percentage Payable Greater Than Gross Receipts In Year One							25.00%
Amount Paid Greater Than Gross Receipts In Year One							1,200,000
Minimum Annual Guarantee, Year One							5,000,000
Amount Paid Greater Than Gross Receipts In Year Ten							1,700,000
Concession Fees							$ 1,560,000

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DOCUMENT AND ENTITY INFORMATION	9 Months Ended
	Sep. 30, 2012	Nov. 14, 2012
Entity Registrant Name	Saker Aviation Services, Inc.
Entity Central Index Key	0001128281
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	skas
Entity Common Stock Shares Outstanding		33,040,422
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2012

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Summary of Significant Accounting Policies (Details)	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
Weighted average common shares outstanding - basic (in shares)	33,040,422	[1]	33,040,422	[1]	33,040,422	[1]	33,045,420	[1]
Common shares upon exercise of options (in shares)	1,237,688	[1]	1,803,947	[1]	1,237,688	[1]	1,803,947	[1]
Weighted average common shares outstanding - diluted (in shares)	34,278,110	[1]	34,844,369	[1]	34,278,110	[1]	34,849,367	[1]

[1] Outstanding stock options and warrants aggregating 1,050,000 and 900,000, respectively, were excluded from the compilation of diluted earnings per share as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2012 and 2011, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended				9 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Sep. 30, 2012		Sep. 30, 2011
REVENUE	$ 4,882,781		$ 4,643,683		$ 12,893,110		$ 11,993,660
COST OF REVENUE	2,868,775		2,905,280		7,585,957		7,067,977
GROSS PROFIT	2,014,006		1,738,403		5,307,153		4,925,683
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	1,557,300		1,327,867		4,219,712		3,963,096
OPERATING INCOME	456,706		410,536		1,087,441		962,587
OTHER INCOME (EXPENSE)
OTHER INCOME (EXPENSE), net	3,864		4,607		39,607		20,780
INTEREST INCOME	6,014		5,642		19,358		24,454
INTEREST EXPENSE	(42,585)		(39,914)		(116,634)		(118,108)
TOTAL OTHER INCOME (EXPENSE)	(32,707)		(29,665)		(57,669)		(72,874)
INCOME BEFORE INCOME TAX EXPENSE	423,999		380,871		1,029,772		889,713
INCOME TAX EXPENSE
CURRENT	(71,000)		(150,000)		(147,000)		(243,000)
DEFERRED	(157,000)		(86,000)		(373,000)		(262,000)
INCOME TAX EXPENSE	(228,000)		(236,000)		(520,000)		(505,000)
NET INCOME	$ 195,999		$ 144,871		$ 509,772		$ 384,713
Net income per Common Share - Basic and Diluted (in dollars per share)	$ 0.01		$ 0.00		$ 0.02		$ 0.01
Weighted Average Number of Common Shares Outstanding - Basic (in shares)	33,040,422	[1]	33,040,422	[1]	33,040,422	[1]	33,045,420	[1]
Weighted Average Number of Common Shares Outstanding - Diluted (in shares)	34,278,110	[1]	34,844,369	[1]	34,278,110	[1]	34,849,367	[1]

[1] Outstanding stock options and warrants aggregating 1,050,000 and 900,000, respectively, were excluded from the compilation of diluted earnings per share as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2012 and 2011, respectively.

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Litigation

9 Months Ended

Sep. 30, 2012

Legal Proceedings [Abstract]

Legal Proceedings [Text Block]

NOTE 7 - Litigation

From time to time in the normal course of its business, the Company may be a party to one or more claims or disputes which may result in litigation. The Company's management does not, however, presently expect that any such matters, either individually or in the aggregate, will have a material adverse effect on the Company's business, financial condition or results of operations.

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Related Parties

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 6 – Related Parties

The law firm of Wachtel & Masyr, LLP provides certain legal services to the Company. William B. Wachtel, the Company’s Chairman of the Board of Directors, is a managing partner of this firm. During the nine months ended September 30, 2012 and 2011, the Company was billed approximately $0 for legal services. At September 30, 2012 and December 31, 2011, the Company has recorded in accounts payable an obligation for legal fees to such firm of approximately $250 related to legal services provided by such firm.

On August 29, 2011, the Company entered into a Redemption Agreement with the non-controlling interest in a subsidiary of the Company. As part of this agreement, the non-controlling interest relinquished its membership interest in the subsidiary in return for earn-out payments of the non-controlling interest’s capital account of $2,769,000. Of that amount, $444,000 was paid upon the execution of the Redemption Agreement, an additional approximately $808,000 has been paid through September 30, 2012. The balance is recorded as a liability at a discount rate of 7%. Continuing earn-out payments shall continue to be made on a monthly basis in an amount equal to (i) 5% of the subsidiary’s gross receipts, plus (ii) 5% of the subsidiary’s pre-tax profit.

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Stockholders' Equity (Details Textual) (USD $)	1 Months Ended	9 Months Ended
	Apr. 17, 2012	Sep. 30, 2012	Dec. 31, 2013	Dec. 31, 2012
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Net Of Forfeitures		100,000
Share Based Compensation Arrangement By Share Based Payment Award Options Grants Weighted Average Exercise Price		$ 0.05
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number			50,000	50,000
Share Based Compensation Arrangement By Share Based Payment Award Options Vested and Expected To Vest Exercisable Value		$ 5,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	250,000
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	25,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	100,000

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Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net Income (Loss) Attributable To Parent	$ 195,999	$ 144,871	$ 509,772	$ 384,713
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount	$ 1,050,000	$ 900,000	$ 1,050,000	$ 900,000
Share Based Compensation			27,232	5,247
Share Based Compensation Arrangement By Share Based Payment Award Options Vested In Period Fair Value			$ 4,500

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Inventories (Tables)

9 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

A summary of inventories as of September 30, 2012 and December 31, 2011 is set forth in the following table:

	September 30, 2012		December 31, 2011
Parts inventory	$	99,377	$	105,162
Fuel inventory		134,313		167,540
Other inventory		11,239		12,469
Total inventory	$	244,930	$	285,171

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, FirstFlight Heliports, LLC d/b/a Saker Aviation Services (“FFH”), FBO Air Wilkes-Barre, Inc. d/b/a Saker Aviation Services (“FBOWB”), and FBO Air Garden City, Inc. d/b/a Saker Aviation Services (“FBOGC”). All significant inter-company accounts and transactions have been eliminated in consolidation.

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain reclassifications were made to the prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income or loss in any period.

Earnings Per Share, Policy [Policy Text Block]

Net Income Per Common Share

Net income for the three and nine months ended September 30, 2012 was $195,999 and $509,772, respectively, and net income for the three and nine months ended September 30, 2011 was $144,871 and $384,713, respectively. Basic net income per share applicable to common stockholders is computed based on the weighted average number of shares of the Company’s common stock outstanding during the periods presented. Diluted net income per share reflects the potential dilution that could occur if securities or other instruments to issue common stock were exercised or converted into common stock. Potentially dilutive securities, consisting of options and warrants, are excluded from the calculation of the diluted income per share when their exercise prices are greater than the average market price of the common stock during the period. 

The following table sets forth the components used in the computation of basic net income per share:

	For the Three Months Ended September 30,				For the Nine months ended September 30,
	2012*		2011*		2012*		2011*
Weighted average common shares outstanding, basic		33,040,422		33,040,422		33,040,422		33,045,420
Common shares upon exercise of options		1,237,688		1,803,947		1,237,688		1,803,947
Weighted average common shares outstanding, diluted		34,278,110		34,844,369		34,278,110		34,849,367

* Outstanding stock options and warrants aggregating 1,050,000 and 900,000 for the three and nine months ended September 30, 2012 and 2011, respectively, were excluded from the computation of diluted earnings per share as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2012 and 2011, respectively.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

Stock-based compensation expense for all share-based payment awards are based on the grant-date fair value. The Company recognizes these compensation costs over the requisite service period of the award, which is generally the option vesting term. For

the nine months ended September 30, 2012 and 2011, the Company incurred stock-based compensation of $27,232 and $5,247, respectively. Such amounts have been recorded as part of the Company’s selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. As of September 30, 2012, the unamortized fair value of such options totaled $4,500.

Option valuation models require the input of highly subjective assumptions, including the expected life of the option. Because the Company's employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

Recently Issued Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2011-08, Intangibles – Goodwill and Other (Topic 350) – Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the currently prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. ASU 2011-08 is effective for the Company in the year ending December 31 2013 and earlier adoption is permitted. The Company has adopted ASU 2011-08 on its consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Schedule of Earnings Per Share Reconciliation [Table Text Block]

The following table sets forth the components used in the computation of basic net income per share:

	For the Three Months Ended September 30,				For the Nine months ended September 30,
	2012*		2011*		2012*		2011*
Weighted average common shares outstanding, basic		33,040,422		33,040,422		33,040,422		33,045,420
Common shares upon exercise of options		1,237,688		1,803,947		1,237,688		1,803,947
Weighted average common shares outstanding, diluted		34,278,110		34,844,369		34,278,110		34,849,367

* Outstanding stock options and warrants aggregating 1,050,000 and 900,000 for the three and nine months ended September 30, 2012 and 2011, respectively, were excluded from the computation of diluted earnings per share as their exercise prices were greater than the average market price of the common stock for the three and nine months ended September 30, 2012 and 2011, respectively.

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Details of all options outstanding are presented in the table below:

	Number of Options			Weighted Average Exercise Price
Balance, January 1, 2012		1,675,000		$	0.14
Granted		100,000			0.05
Exercised		—			—
Forfeited		(350,000	)		0.38
Balance, September 30, 2012		1,425,000		$	0.08
Exercisable at September 30, 2012		425,000		$	0.08

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Inventories (Details Textual) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Amounts Held for Third Parties	$ 116,728	$ 173,023

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 509,772	$ 384,713
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	297,216	259,551
Management fee recorded through additional paid in capital	0	745,669
Loss on dispositions of equipment	0	2,799
Stock based compensation	27,232	5,247
Changes in operating assets and liabilities:
Accounts receivable	(227,639)	(376,158)
Inventories	40,241	(6,939)
Prepaid expenses and other current assets	(95,388)	41,828
Deposits	(17,109)	275,105
Deferred income taxes	373,150	250,631
Accounts payable	124,312	407,205
Customer deposits	(6,509)	(53,696)
Accrued expenses	55,637	(1,255,691)
TOTAL ADJUSTMENTS	571,143	295,551
NET CASH PROVIDED BY OPERATING ACTIVITIES	1,080,915	680,264
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposition of equipment	0	65,247
Payment of note receivable	75,143	70,077
Purchase of property and equipment	(125,674)	(917,885)
NET CASH USED IN INVESTING ACTIVITIES	(50,531)	(782,561)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable	(513,653)	(809,305)
Purchase of common stock, retired	0	(11,989)
Line of credit, net	0	150,000
Repayment of line of credit	(650,000)	0
Redemption of non-controlling interest	0	(476,995)
NET CASH USED IN FINANCING ACTIVITIES	(1,163,653)	(1,148,289)
NET CHANGE IN CASH	(133,269)	(1,250,586)
CASH - Beginning	451,957	1,541,992
CASH - Ending	318,688	291,406
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the periods for:
Interest	116,634	118,108
Income Taxes	146,796	253,608
SUPPLEMENTAL DISCLOSURE OF NON-CASH FLOW INFORMATION
Increase in notes payable for the redemption of non-controlling interest	$ 0	$ 1,956,952

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Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 5 - Stockholders’ Equity

Stock Options

Details of all options outstanding are presented in the table below:

	Number of Options			Weighted Average Exercise Price
Balance, January 1, 2012		1,675,000		$	0.14
Granted		100,000			0.05
Exercised		—			—
Forfeited		(350,000	)		0.38
Balance, September 30, 2012		1,425,000		$	0.08
Exercisable at September 30, 2012		425,000		$	0.08

On June 1, 2012, the Company granted an employee a stock option under the Plan to purchase 100,000 shares of common stock at $0.05 per share, the closing price of the Company’s common stock on May 31, 2012. Fifty-thousand shares subject to such option vest on December 31, 2012 and the remaining 50,000 shares vest on December 31, 2013. This option is valued at $5,000 and is being amortized over the vesting period.

On April 17, 2012, four sets of options of 25,000 shares each, representing a total of 100,000 shares, expired.

On April 1, 2012, an option for 250,000 shares expired.

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Inventories (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Parts inventory	$ 99,377	$ 105,162
Fuel inventory	134,313	167,540
Other inventory	11,239	12,469
Total inventory	$ 244,930	$ 285,171