Sky Harbour Group Corp., which builds hangars for private aircraft owners, is borrowing $100 million through the tax-exempt municipal bond market. This move supports the company's expansion plans, capitalizing on a surge in private aviation demand among the ultra-wealthy.

The firm's strategy reflects a broader boom in private-jet travel, accelerated by pandemic-era shifts and increased demand for flexible, secure air travel. Sky Harbour's specialized facilities offer premium amenities and security, catering to a niche but growing market of high-net-worth individuals and corporate clients.

This municipal bond issuance marks a notable financing shift for a sector typically reliant on private equity. Investors will watch how Sky Harbour allocates the capital to new projects, a key test of whether this niche real estate segment can sustain its rapid growth trajectory.