Guarantees

3 Months Ended

Jun. 30, 2025

Guarantees and Product Warranties [Abstract]

Guarantees

Guarantees

Nonfinancial Guarantees

From time to time, we may issue guarantees or indemnifications to third parties assuring performance of lease agreements pertaining to aircraft assets owned by certain CJVII Series ("nonfinancial guarantees"). Air T's performance under these guarantees would be triggered by failure of the series to perform in accordance with the terms stated in the lease agreements.

Nonfinancial guarantees and indemnifications are recorded at fair value at their inception. We regularly review our performance risk under these arrangements, and in the event it becomes probable that we will be required to perform under a guarantee or indemnity, the amount of probable payment will be recorded.

The maximum potential payments for nonfinancial guarantees were $4.4 million at June 30, 2025 and March 31, 2025. The carrying value of recorded liabilities related to nonfinancial guarantees was $0 at both June 30, 2025 and March 31, 2025.