Sky Harbour Announces Two New Developments Aimed at Serving the New York and Connecticut Business Aviation Markets and Provides an Update on Construction Activities - Seite 2

The Bradley International Airport and Hudson Valley Regional Airport developments join Sky Harbour campuses now operating at Houston’s Sugar Land Regional Airport (SGR), Nashville International Airport (BNA), and Miami Opa-Locka Executive Airport (OPF); campuses under construction at Denver Centennial Airport (APA), Phoenix Deer Valley Airport (DVT), Dallas Addison Airport (ADS), and Chicago Executive Airport (PWK); and additional campuses soon to be announced.

Update on Construction Activities

Sky Harbour campuses are constructed in accordance with the Sky Harbour SH16C Prototype hangar design, which is subjected to constant refinement and improvement processes. In consultation with the company’s structural engineers and an independent peer review, Sky Harbour will be fortifying certain structural elements in the SH16C prototype in order to enhance stability, safety, and standardization to accommodate and exceed the nation’s highest wind, snow and seismic load requirements. As Sky Harbour’s Denver (APA) and Phoenix (DVT) campuses have already gone vertical, both will be retrofitted with additional Pre-Engineered Metal Building (PEMB) components in order to achieve the same structural effect. The cost of this retrofit is projected to be approximately $3.2 million at DVT and $2.0 million at APA. The additional work is expected to extend the completion date at DVT from March 2024 to June 2024, and at APA from June 2024 to August 2024. As vertical construction at Sky Harbour’s Dallas (ADS) campus has not yet begun, the company anticipates significantly lower budget impact at that campus, albeit a similar schedule delay. All subsequent campuses, including Chicago (PWK), Hudson Valley (POU), Bradley (BDL), Miami (OPF) phase 2, Phoenix (DVT) phase 2, and Denver (APA) phase 2, will be planned and constructed in accordance with the enhanced SH16C and (future) SH34 designs. Completed campuses, at Houston (SGR), Nashville (BNA) and Miami (OPF) employed an earlier and different prototype designs and do not need retrofitting.

In Q1 2024, the Company intends to contribute in cash the amount necessary to mitigate the increased costs associated with these modifications from unrestricted funds on hand at the corporate level into Sky Harbour Capital and the Obligated Group’s construction fund. As in the past, the Company will protect and support the funding sufficiency of the 2021 Sky Harbour Capital LLC Aviation Facilities Project as amended.