Avantair 8-K Avantair, Inc. Reports Fiscal 2012 Third Quarter

Exhibit 99.1

AVANTAIR, INC. REPORTS FISCAL 2012 THIRD QUARTER

FINANCIAL RESULTS

Quarterly Revenue Increases 9.9% to $40.1 Million from Year-Ago Period

CLEARWATER, Fla. – May 10, 2012 — Avantair, Inc. (OTCBB: AAIR), the industry leader of fractional aircraft ownership in the light jet cabin category and the only publicly traded stand-alone private aircraft operator, today announced financial results for its fiscal 2012 third quarter and nine-month periods which ended March 31, 2012.

Third Quarter Fiscal 2012 Performance:

• Total revenue grew 9.9% to $40.1 million compared to $36.5 million in the fiscal 2011 third quarter.

• Total number of revenue-generating flight hours flown increased by 6.1% to 11,237, compared with 10,594 hours flown in fiscal 2011 third quarter.

• Non-GAAP Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, employee termination and other costs, gain on sale of asset, and gain on debt extinguishment) increased by 81% to $1.7 million, compared to $940,000 in the third quarter of fiscal 2011.

• Net loss attributable to common stockholders was ($1.1) million, or ($.04) per share, based on 26.5 million weighted average shares outstanding, and included $883,000 related to employee termination and other costs, and a $624,000 gain on the sale of an asset. This compared with a net loss attributable to common stockholders of ($1.3) million, or ($0.05) per share, based on 26.4 million weighted average shares outstanding in the third quarter of fiscal 2011.

• Cash and cash equivalents were $7.1 million as of March 31, 2012 compared to $5.6 million as of June 30, 2011.

Year-to-Date Fiscal 2012 Performance:

• Total revenue for the nine months ended March 31, 2012 grew 7.1% to $116.6 million compared to $108.9 million for the nine months ended March 31, 2011.

• Total number of revenue-generating flight hours flown increased by 6.1% to 34,056, compared with 32,096 hours flown in the year-ago period.

• Non-GAAP Adjusted EBITDA increased by 218% to $3.3 million, compared to ($2.8) million in the same nine month period one year ago.

• Net loss attributable to common stockholders was ($4.4) million, or ($.17) per share, based on 26.5 million weighted average shares outstanding. The year-to-date net loss included $883,000 related to employee termination and other costs, $439,000 related to a gain on debt extinguishment and $624,000 related to a gain on the sale of an asset. This compared to a net loss attributable to common stockholders of ($10.9) million, or ($0.41) per share, based on 26.4 million weighted average shares outstanding in the same nine month period one year ago.

Steven Santo, Chief Executive Officer of Avantair said, “Though these results are better than one year ago and our prior quarter, we are not satisfied and will continue to focus on taking appropriate actions to achieve sustainable and growing profitability. During our recent quarter, we undertook a series of actions in the sales and finance areas of our business, which we believe will improve our operating results.”

Conference Call

Chief Executive Officer Steven Santo and Executive Vice President and Chief Financial Officer Stephen Wagman will hold a conference call with the financial community today, Thursday, May 10, 2012 at 5 PM ET to review the Company’s financial results and provide an update on business developments.

Interested parties may participate in the conference call by dialing: 1 (888) 895-5271 U.S. Toll Free and 1 (847) 619-6547 U.S. Toll. For international callers: 1 (847) 619-6547 Toll. When prompted, give Confirmation Number: 32341639 or ask for “Avantair’s Fiscal 2012 Third Quarter Earnings Conference Call.” The live conference call will also be webcast on the Company’s website atwww.avantair.com under the Investors section.

A telephonic replay of the conference call may be accessed approximately two hours after the call through May 24, 2012, by dialing 1 (888) 843-7419 US Toll Free or 1 (630) 652-3042 US Toll. For international callers: 1 (630) 652-3042 Toll. When prompted key in the Passcode: 32341639#.

Use of Non-GAAP Measure of Performance

The following table reflects the reconciliation of net loss, prepared in conformity with GAAP to the non-GAAP financial measure of Adjusted EBITDA:

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2012			2011			2012			2011
Net Loss	$	(730,138	)	$	(956,567	)	$	(3,304,667	)	$	(9,837,240	)
Add:
Depreciation and amortization		990,293			794,941			2,953,254			3,313,297
Interest expense		1,080,255			1,034,484			3,376,711			3,501,015
Stock-based compensation		178,876			82,447			533,531			272,327
Employee termination and other costs		883,331			—			883,331			—
Subtract:
Interest and other income		(33,002	)		(15,763	)		(113,478	)		(49,916	)
Gain on sale of asset		(624,179	)		—			(624,179	)		—
Gain on debt extinguishment		—			—			(438,621	)		—
Adjusted EBITDA	$	1,745,436		$	939,542		$	3,265,882		$	(2,800,517	)

The Company believes that the non-GAAP financial measure of Adjusted EBITDA is useful to investors as it excludes other income and expense items that do not directly reflect the underlying performance of the Company’s business operations. This measure is a supplement to accounting principles generally accepted in the U.S. used to prepare the Company’s financial statements and should not be viewed as a substitute for GAAP measures. In addition, the Company’s non-GAAP measure may not be comparable to non-GAAP measures of other companies.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Avantair’s future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. Avantair cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and Avantair assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. In addition to factors previously disclosed in Avantair’s filings with the Securities and Exchange Commission (“SEC”) and those as may be identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: general economic and business conditions in the U.S. and abroad, changing interpretations of accounting principles, generally accepted in the U.S., changes in market acceptance of the company’s products, inquiries and investigations and related litigation, fluctuations in customer demand, management of rapid growth, intensity of competition. The information set forth herein should be read in light of such risks. Avantair does not assume any obligation to update the information contained in this press release.

Avantair’s filings with the SEC, accessible on the SEC’s website at http://www.sec.gov, discuss these factors in more detail and identify additional factors that can affect forward-looking statements.

About Avantair

Avantair, the sole North American provider of fractional shares,leases and flight time cards in the Piaggio Avanti aircraft, and the only publicly traded stand-alone private aircraft operator, is headquartered in Clearwater, FL, with more than 500 employees. The Company offers private travel solutions for individuals and businesses traveling within its service area, which includes the continental U.S., parts of Canada, the Caribbean and Mexico, at a fraction of the cost of wholeaircraft ownership. The Company currently manages a fleet of 57 aircraft. For more information about Avantair, please visit:www.avantair.com.

Company Contacts:

Avantair, Inc.

Stephen Wagman, EVP and CFO

727-538-7909

swagman@avantair.com

AVANTAIR, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

ASSETS

	March 31,		June 30,
	2012		2011
	(Unaudited)
Current Assets
Cash and cash equivalents	$	7,145,852	$	5,643,305
Accounts receivable, net of allowance for doubtful accounts of $790,776 and $231,357, respectively		11,111,690		12,202,020
Inventory		386,686		442,634
Current portion of aircraft costs related to fractional share sales		11,709,364		20,770,142
Prepaid expenses and other current assets		7,113,573		7,012,555
Total current assets		37,467,165		46,070,656
Long-Term Assets
Aircraft costs related to fractional share sales, net of current portion		2,890,723		9,913,793
Property and equipment, at cost, net of accumulated depreciation and amortization of $22,026,824 and $21,235,649 respectively		38,473,434		36,733,929
Cash - restricted		2,225,410		2,361,851
Deposits on aircraft		7,187,253		9,500,988
Deferred maintenance on aircraft engines		369,610		266,087
Goodwill		1,141,159		1,141,159
Other assets		9,111,253		4,950,035
Total long-term assets		61,398,842		64,867,842
Total assets	$	98,866,007	$	110,938,498

AVANTAIR, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

LIABILITIES AND STOCKHOLDERS’ DEFICIT

	March 31,			June 30,
	2012			2011
	(Unaudited)
Current Liabilities
Accounts payable	$	9,156,434		$	5,908,979
Accrued liabilities		11,909,195			6,181,807
Customer deposits		3,424,258			2,082,160
Short-term debt		12,000,000			13,000,000
Current portion of long-term debt		5,403,857			7,856,117
Current portion of deferred revenue related to fractional aircraft share sales		13,353,125			23,550,037
Unearned management fee, flight hour card and club membership revenue		51,648,155			51,437,316
		��
Total current liabilities		106,895,024			110,016,416
Long-Term Liabilities
Long-term debt, net of current portion		12,398,853			8,198,326
Deferred revenue related to fractional aircraft share sales, net of current portion		9,698,343			18,014,232
Unearned club membership revenue, net of current portion		377,161			1,353,618
Other liabilities		2,635,076			2,658,945
Total long-term liabilities		25,109,433			30,225,121
Total liabilities		132,004,457			140,241,537
COMMITMENTS AND CONTINGENCIES
Series A convertible preferred stock, $.0001 par value, authorized 300,000 shares; 152,000 shares issued and outstanding		14,776,356			14,708,088
STOCKHOLDERS’ DEFICIT
Preferred stock, $.0001 par value, authorized 700,000 shares; none issued		—			—
Common stock, Class A, $.0001 par value, 75,000,000 shares authorized, 26,489,603 and 26,418,246 shares issued and outstanding, respectively		2,650			2,642
Additional paid-in capital		57,662,128			57,212,099
Accumulated deficit		(105,579,584	)		(101,225,868	)
Total stockholders’ deficit		(47,914,806	)		(44,011,127	)
Total liabilities and stockholders’ deficit	$	98,866,007		$	110,938,498

AVANTAIR, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2012			2011			2012			2011
Revenue
Fractional aircraft shares sold and lease revenue	$	8,879,476		$	7,729,333		$	23,548,667		$	25,705,734
Management and maintenance fees		21,354,850			18,713,993			62,621,620			55,946,175
Flight hour card and club membership revenue		7,757,594			8,029,167			25,520,225			21,443,660
Other revenue		2,063,298			2,016,100			4,953,385			5,759,678
Total revenue		40,055,218			36,488,593			116,643,897			108,855,247
Operating expenses
Cost of fractional aircraft shares sold		7,133,247			6,618,110			19,403,825			22,255,800
Cost of flight operations		17,607,526			16,328,921			52,349,977			51,671,193
Cost of fuel		4,550,333			4,112,436			14,220,687			12,648,324
General and administrative expenses		7,831,064			7,244,888			23,119,515			20,799,106
Selling expenses		1,366,488			1,327,143			4,817,542			4,553,668
Depreciation and amortization		990,293			794,941			2,953,254			3,313,297
Employee termination and other costs		883,331			—			883,331			—
Gain on debt extinguishment		—			—			(438,621	)		—
Gain on sale of asset		(624,179	)		—			(624,179	)		—
Total operating expenses		39,738,103			36,426,439			116,685,331			115,241,388
Income (loss) from operations		317,115			62,154			(41,434	)		(6,386,141	)
Other income (expenses)
Interest and other income		33,002			15,763			113,478			49,916
Interest expense		(1,080,255	)		(1,034,484	)		(3,376,711	)		(3,501,015	)
Total other expenses		(1,047,253	)		(1,018,721	)		(3,263,233	)		(3,451,099	)
Net loss		(730,138	)		(956,567	)		(3,304,667	)		(9,837,240	)
Preferred stock dividend and accretion of expenses		(372,311	)		(364,326	)		(1,117,318	)		(1,109,054	)
Net loss attributable to common stockholders	$	(1,102,449	)	$	(1,320,893	)	$	(4,421,985	)	$	(10,946,294	)
Loss per common share:
Basic and diluted	$	(0.04	)	$	(0.05	)	$	(0.17	)	$	(0.41	)
Weighted-average common shares outstanding:
Basic and diluted		26,489,424			26,406,574			26,454,261			26,380,798