Sky Harbour Group Corporation Reports First Quarter 2022 Financial Results, Effectiveness of Form S-1 for Shares Underlying Its Warrants and Acquisition of Miami-Opa Locka Airport Lease

Sky Harbour Group Corporation (NYSE American: SKYH, SKYH WS) (“SHG” or the “Company”), an aviation infrastructure company building the first nationwide network of Home-Basing Solutions (“HBS”) for business aircraft, today announced financial results for the quarter ended March 31, 2022.

Tal Keinan, Chairman and Chief Executive Officer, commented, “Sky Harbour marked key milestones in the first quarter of 2022. The company completed its business combination with the Yellowstone acquisition company, adding an additional $60 million of fresh equity. The site acquisition, development and construction, and leasing teams have all grown significantly. With the best professionals serving in the right positions, the company has entered an accelerated growth phase in all areas. Construction and leasing continue to advance, and we hope to announce new Sky Harbour locations in the coming months. We look forward to commencing flight operations at Nashville phase 2 in July, and at Miami phase 1 in September. The backdrop of Sky Harbour’s growth is a dramatically expanding United States business aviation fleet, making the United States hangar supply shortage increasingly acute. Sky Harbour will continue to push forward at full steam, addressing one of business aviation’s most pressing challenges, and pressing our unique advantage to maximize value for you, our shareholders.”

First Quarter 2022 Financial and Business Highlights:

• Completed the “Yellowstone Transaction”, in which our predecessor, Yellowstone Acquisition Company (“Yellowstone”), consummated the Equity Purchase Agreement, dated as of August 1, 2021 (the “Equity Purchase Agreement”), with Sky, a Delaware limited liability company. As a result, the Company was reorganized as an umbrella partnership-C corporation, or “Up-C”, structure in which substantially all of the operating assets of the Company are held by Sky and SHG’s only substantive assets are its equity interests in Sky (the “Common Units”)
• Upon closing of the Yellowstone Transaction, received an additional $45 million equity investment from Boston Omaha through the BOC PIPE
• $233 million of cash and U.S. Treasury securities available to support the Company’s scalable business strategy

Form 10-Q

SHG filed in a Quarterly Report on Form 10-Q the unaudited consolidated financial statements for the quarter ended March 31, 2022. Investors can find the filing on the SEC’s website, www.sec.gov.

Recent Developments

On April 29, 2022, our wholly-owned subsidiary outside the Obligated Group purchased the underlying ground lease at Miami-Opa Locka Airport from the sublessor for approximately $8.5 million, and now lease the property directly from Miami-Dade County (“MDC”). The transaction also required us to pay approximately $1.0 million in transfer fees to MDC. The transaction extends the term of our ground lease by 10 years until 2079 and is expected to decrease the Company’s cash ground lease payments by at least $30 million over the term of the lease on an undiscounted basis.

S-1 Registration Statement

SHG filed a Registration Statement on Form S-1 (the “Form S-1”) for (i) issuance of up to 14,519,218 shares of Class A Common Stock issuable upon exercise of 6,799,439 Public Warrants and 7,719,779 Private Warrants. The Form S-1 also registered the resale of up to 7,719,779 Private Warrants and the shares of Class A Common Stock underlying such warrants held by BOC Yellowstone LLC, an affiliate of the Sponsor of YSAC. Both the Private Warrants and their underlying shares of Class A Common Stock are subject to lock-up provisions as detailed in the Form S-1. The SEC declared the Form S-1 effective on May 5^th, 2022, and the holders of the Warrants may presently exercise their Warrants with cash in accordance with the Warrant Agreement dated October 21, 2020 thru their respective broker-dealers.

About Sky Harbour Group Corporation

Sky Harbour Group Corporation is an aviation infrastructure development company building the first nationwide network of Home-Basing Solutions (“HBS”) for business aircraft. We develop, lease and manage general aviation hangars across the United States, targeting airfields in the largest growth markets with significant aircraft populations and high hangar demand. Our HBS campuses feature exclusive private hangars and a full suite of dedicated services specifically designed for home-based aircraft. To learn more, visit www.skyharbour.group.

Forward-Looking Statements

Certain statements made in this release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements about the anticipated benefits of the business combination, and the financial condition, results of operations, earnings outlook and prospects of SHG may include statements for the period following the consummation of the business combination. When used in this press release, the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of SHG as applicable and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in the public filings made or to be made with the SEC by SHG, including the filings described above, regarding the following: the effectiveness of the Form S-1; expectations regarding SHG’s strategies and future financial performance, including its future business plans, expansion plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and SHG’s ability to invest in growth initiatives; SHG’s ability to scale and build the hangars currently under development or planned in a timely and cost-effective manner; the implementation, market acceptance and success of SHG’s business model and growth strategy; the success or profitability of SHG’s hangar facilities; SHG’s future capital requirements and sources and uses of cash; SHG’s ability to obtain funding for its operations and future growth; developments and projections relating to SHG’s competitors and industry; the ability to recognize the anticipated benefits of the business combination; geopolitical risk and changes in applicable laws or regulations; the possibility that SHG may be adversely affected by other economic, business, and/or competitive factors; operational risk; risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on SHG’s business operations, as well as SHG’s financial condition and results of operations. Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of SHG prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. SHG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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