July 29, 2004
                                                  Contact:  John Gioffre
                                                  Chief Financial Officer
                                                  3524 Airport Road
                                                  Maiden, NC 28650
                                                  (828) 464-8741 Ext. 215


                      FOR IMMEDIATE RELEASE

      AIR T, INC. REPORTS UNAUDITED FIRST QUARTER EARNINGS

MAIDEN,  NC  -  Air T, Inc. (AirT) (NASDAQ: AIRT) today  reported
consolidated  net earnings of $533,000 ($0.20 per diluted  share)
for  fiscal 2005's first quarter ended June 30, 2004, a  $184,000
(53%)  increase  compared  to  a  consolidated  net  earnings  of
$349,000  ($0.13 per diluted share) for the similar  fiscal  2004
period.  Fiscal 2005's increase in net earnings was primarily the
result  of  increased  levels  of service  and  equipment  orders
related to both the air cargo and ground equipment sectors of the
Company's business.  The discontinuation and subsequent  sale  of
assets  related  to  the Company's aircraft parts  brokerage  and
repair service business sector in fiscal 2004 further contributed
to increased net earnings in the first quarter of fiscal 2005.

Consolidated revenues increased $4,031,000 (36.5%) to $15,087,000
for  the quarter ended June 30, 2004 compared to the same quarter
in  the  prior  fiscal  year.   The increase  in  current  period
revenues primarily resulted from a $1,776,000 (24.2%) increase in
air  cargo  revenues  to  $9,051,000 and an  increase  in  ground
equipment revenues of $2,265,000 (60.1%) to $6,036,000.

Walter Clark, Chairman and Chief Executive Officer of AirT,
commented, "These earnings are a furtherance of the strong
results shown by AirT in the last fiscal year.  We continue to
provide services and products that offer cost effective solutions
to meet our customer's needs.

The Company operates in two business segments.  AirT, through its
subsidiaries,  provides  overnight air  freight  service  to  the
express  delivery industry, and manufactures, sells and  services
aircraft ground support and special purpose industrial equipment.
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)


                                          Three Months Ended (Unaudited)
                                              06/30/2004   06/30/2003
Continuing Operations Revenues                $   15,087    $  11,056

Net Earnings from Continuing Operations              533          444
Net Loss from Discontinued Operations                -            (95)
Net Earnings                                         533          349


Net Earnings (Loss) Per Share-Diluted:
Continuing Operations                        $      0.20    $    0.16
Discontinued Operations                              -          (0.03)
Total Net Earnings Per Share-Diluted         $      0.20    $    0.13

Average Common Shares Outstanding                  2,687        2,726