The Connecticut Airport Authority, Duchess County (NY), and Sky Harbour Group Corporation announced the execution of two ground leases for the development of Sky Harbour Home Base campuses at Bradley International Airport (BDL) and at Hudson Valley Regional Airport (POU). Both new campuses will address the large and growing hangar deficit impacting the New York metro area, the #1 business aviation market in the world. Additionally, the Company is updating certain of its estimates and completion schedule pertaining to two active construction projects.

The new Sky Harbour campuses will be developed on approximately 8 acres at BDL and 7 acres at POU. Both will be a catalyst to create hundreds of local jobs and generate significant economic benefits to their local communities. These campuses will offer ?the best home base in business aviation?

to house some of the New York and Connecticut area?s top corporate and privately-owned business jets in private hangars, with line-services dedicated exclusively to based tenants, offering ?the shortest time to wheels-up in business aviation. 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 higher 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 First Quarter of 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.