November 4, 2004
                                             Contact:  John Gioffre
                                             Chief Financial Officer
                                             3524 Airport Road
                                             Maiden, NC  28650
                                             (828) 464-8741 Ext. 6677


                        FOR IMMEDIATE RELEASE

        AIR T, INC. REPORTS UNAUDITED SECOND QUARTER RESULTS

MAIDEN,  NC  -  Air  T,  Inc. (AirT) (NASDAQ:  AIRT)  today  reported
unaudited consolidated net earnings of $538,000 ($0.20 per share) for
fiscal  2005's second quarter ended September 30, 2004,  compared  to
net earnings of $358,000 ($0.13 per share) for the second quarter  of
fiscal  2004.  Consolidated revenues for fiscal 2005's second quarter
was  $16,366,000 compared to $13,623,000 for the similar 2004  fiscal
quarter.   Six  month, year-to-date, consolidated revenues  increased
$6,773,000, to $31,452,000, while net earnings increased $365,000  to
current year-to-date net earnings of $1,072,000.

AirT's fiscal 2005's net earnings for the three and six month periods
ended September 30, 2004 are, respectively, comprised of $538,000 and
$1,072,000 in net earnings from continuing operations, which  include
residual  costs  associated with the discontinued  operation  of  the
aviation parts and services business segment while the periods  ended
September  30,  2003  are, respectively, comprised  of  $612,000  and
$1,056,000   in   earnings   from  continuing   operations,   offset,
respectively,  by  $254,000 and $349,000 in losses from  discontinued
operations.

The  current  three  and six-month periods ended September  30,  2004
increased revenues resulted from both increased ground equipment  and
air cargo revenues.  The increased net earnings were due to increased
ground  equipment  segment earnings during the  current  periods  and
losses on the discontinued operations of the Company's aviation parts
and service segment incurred in the prior periods ended September 30,
2003.   The  equipment  sector's increase net  earnings  were  partly
offset  by a net earnings decrease in the air cargo sector.  The  net
earnings  decrease  in  air  cargo  was  due  to  a  combination   of
temporarily  decreased  administrative  fees  and  higher  levels  of
current  period  administrative costs.  The  temporary  reduction  in
administrative   fees  resulted  from  delays   in   its   customer's
introduction  of  newer  technology  aircraft,  currently  undergoing
conversion to cargo configuration, as older cargo aircraft are phased
out   of  service.   Administrative  costs  increased  as  additional
staffing  has been put in place to oversee the phase-in of the  newer
aircraft and route expansion.

Walter  Clark, Chairman and Chief Executive Officer of AirT,  stated,
"These continued good earnings are indicative of strong relationships
with  our  core customers.  Both freight delivery companies  and  the
equipment   manufacturing  company  have   long   standing   business
associations that continue to be significant.  AirT strives to
provide  the highest degree of service and reliability to all business
partners."

AirT,  through  its  subsidiaries,  provides  overnight  air  freight
service  to  the  express  delivery  industry  and  manufactures  and
services  aviation and other specialized equipment.  AirT is  one  of
the  largest small aircraft air cargo operators in the United  States
and  currently operates a fleet of single and twin engine  turbo-prop
aircraft nightly in the eastern half of the United States and Canada,
South America, 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 the effects of economic, competitive and
market conditions in the aviation industry, the continuing impact  of
terrorist activities and threats, continuation of contracts with  the
significant  customer  of  the company's air  cargo  segment,  market
acceptance  of  new products and services and changes  in  government
regulations or technology.  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   SIX MONTHS ENDED
                                        09/30/04  09/30/03  09/30/04  09/30/03
Continuing Operations Revenues           $16,366   $13,623   $31,452   $24,679
  Earnings from Continuing Operations        538       612     1,072     1,056
  Loss from Discontinued Operations          -        (254)      -        (349)
Net Earnings                             $   538   $   358   $ 1,072   $   707

Net Earnings (Loss) Per Share-Diluted:
Continuing Operations                    $  0.20   $  0.22   $  0.40   $  0.39
Discontinued Operations                      -       (0.09)      -       (0.13)
Total Net Earnings Per share-Diluted     $  0.20   $  0.13   $  0.40   $  0.26

Weighted Average Common Shares
  Outstanding-Diluted                      2,693     2,734     2,703     2,726