June 22, 2004
                                                  Contact: John J. Gioffre
                                                  Chief Financial Officer
                                                  3524 Airport Road
                                                  Maiden, NC  28650
                                                  (828) 464-8741  Ext. 215

                       FOR IMMEDIATE RELEASE


MAIDEN,  NC  -  Air  T, Inc. (AirT) (NASDAQ: AIRT)  today  reported
consolidated  net earnings of $1,738,000 ($0.64 per diluted  share)
for  fiscal  2004,  which  ended March  31,  2004,  compared  to  a
consolidated net loss of $1,224,000 (($0.45) per diluted share) for
fiscal   2003.   Fiscal  2004's  net  earnings  was  comprised   of
$2,164,000  ($0.80 per diluted share) in earnings  from  continuing
operations,  offset by a $426,000 (($0.16) per diluted share)  loss
from discontinued operations.

During the fourth quarter of fiscal 2003, Company management agreed
to a plan to sell the assets of its Mountain Aircraft Services, LLC
(MAS) subsidiary and to discontinue the operations of the Company's
aviation   service  sector  business.   In  conjunction  with   the
anticipated  sale,  the  Company reclassified  $1,591,000,  net  of
taxes, to discontinued operations during of fiscal 2003.  In August
2003,  the Company completed the sale of certain assets of MAS  for
consideration  of  $1,885,000.  Amounts  recorded  in  discontinued
operations  in fiscal 2004 relate to the net revenues and  expenses
of  MAS.   As detailed in Financial Highlights below, the Company's
financial  statements reflect the results of MAS as a  discontinued

The  Company's  remaining subsidiaries continue to operate  in  two
business segments, Mountain Air Cargo, Inc. (MAC) and CSA Air, Inc.
(CSA)  provide  overnight air cargo services  to  the  air  express
delivery   sector   and   Global  Ground  Support,   LLC   (Global)
manufactures,  sells  and services aviation and  other  specialized
ground  support equipment products to passenger and cargo airlines,
the U.S. Government, airports and commercial customers.

Consolidated   revenue   from   continuing   operations   increased
$13,125,000 (30.6%) to $55,997,000 for the fiscal year ended  March
31,  2004 compared to the prior fiscal year.  The increase in  2004
revenue  primarily resulted from an increase in Global  revenue  of
$6,856,000  (52.9%)  to  $19,829,000, combined  with  a  $6,269,000
(21.0%)  increase  in  air cargo revenue to $36,168,000  in  fiscal

Walter  Clark,  Chairman  and  Chief  Executive  Officer  of  AirT,
commented,  "The turnaround in the fiscal results validates  AirT's
decision   to  focus  on  air  freight  and  specialized  equipment
manufacture.   This  redirection of corporate energy  coupled  with
substantial  throughput  in  both our manufacturing  operation  and
aircraft  maintenance  facility has resulted in  these  outstanding
operating  results.  Our  philosophy of viewing  our  customers  as
strategic   partners  in  business  helps  to  foster  a   positive
progressive  environment for all involved.  AirT looks  forward  to
working alongside our customers in current fiscal year."

AirT  is one of the largest, small-aircraft air cargo operators  in
the  United  States.  It currently operates a fleet of  single  and
twin engine turbo-prop aircraft nightly in the eastern half of  the
United States and Canada, Puerto Rico and the Virgin Islands.

Statements  in  this  press  release,  which  contain   more   than
historical information may be considered forward-looking statements
(as  such  term  is  defined in the Private  Securities  Litigation
Reform  Act  of 1995) which are subject to risks and uncertainties.
Actual  results may differ materially from those expressed  in  the
forward-looking statements because of important potential risks and
uncertainties,  including  but  not  limited  to  future   economic
conditions, inflation rates, competition, changes in technology  or
government   regulation,  and  the  impact  of   future   terrorist
activities  in  the  United States and abroad.   A  forward-looking
statement is neither a prediction nor a guarantee of future  events
or  circumstances, and those future events or circumstances may not
occur.   We are under no obligation, and we expressly disclaim  any
obligation,  to  update  or  alter any forward-looking  statements,
whether as a result of new information, future events or otherwise.

                       FINANCIAL HIGHLIGHTS
               (In thousands, except per share data)

  Continuing Operations Revenue               $  55,997       $  42,872
  Net Earnings from Continuing Operations     $   2,164       $     366
  Net Loss from Discontinued Operations       $    (426)      $  (1,591)
  Net Earnings (Loss)                         $   1,738       $  (1,225)

  Net (Loss) Earnings Per Share-Diluted:
  Continuing Operations                       $    0.80       $    0.13
  Discontinued Operations                         (0.16)          (0.58)
  Total Net Earnings (Loss) Per Share-Diluted $    0.64       $   (0.45)
  Average Common Shares Outstanding               2,728           2,726