Item 1.01 Entry into a Material Definitive Agreement

On January 7, 2022, Contrail Aviation Support, LLC and Contrail Aviation Leasing, LLC (collectively "Contrail Aviation"), a 79%-owned subsidiary of Air T, Inc. (the "Company"), completed an interest rate swap transaction with Old National Bank with respect to the $43.6 million loan made to Contrail Aviation in November 2020 pursuant to the Main Street Priority Loan Facility as established by the U.S. Federal Reserve. In connection with the transaction, Old National Bank and Contrail Aviation entered into the 2002 ISDA Master Agreement, along with the Schedule to such Agreement. The related trade confirmation was executed on January 7, 2022. The purpose of the floating-to-fixed interest rate swap transaction was to effectively fix the loan interest rate at 4.68%. Notwithstanding the terms of the interest rate swap transaction, Contrail Aviation is ultimately obligated for all amounts due and payable under the financing. The Company and Contrail Aviation may enter into additional swap transactions in the future from time to time.

The description of the ISDA Master Agreement and the Schedule to such Agreement set forth above is qualified in its entirety by reference to the ISDA Master Agreement and the Schedule to such Agreement, copies of which are filed as Exhibits 10.1 and 10.2 to this Current Report on Form 8-K and incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

To the extent required by Item 2.03 of Form 8-K, the information contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits

10.1 International Swaps and Derivatives Association, Inc. 2002 Master Agreement dated as of December 28, 2021 between Old National Bank and Contrail Aviation Support, LLC & Contrail Aviation Leasing, LLC.

10.2 Schedule to the 2002 Master Agreement dated as of December 28, 2021 between Old National Bank and Contrail Aviation Support, LLC & Contrail Aviation Leasing, LLC, including Swap Transaction Confirmation dated January 7, 2022.

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