Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 24

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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31, 2025, we owned and managed on behalf of our joint venture 278 aircraft leased to 75 airline customers located in 46 countries.  The Net Book Value of our fleet was $8.5 billion as of August 31, 2025.  The weighted average age of our fleet was 8.6 years, and the weighted average remaining lease term was 5.7 years.  The weighted average utilization rate of our fleet was over 99% for the six months ended August 31, 2025.  During the six months ended August 31, 2025, we purchased 23 aircraft and sold 18 aircraft and other flight equipment.  As of August 31, 2025, we had commitments to purchase 20 aircraft for $1.0 billion, with deliveries through December 2027, which included estimated amounts for pre-delivery deposits, contractual price escalations and other adjustments.

Our total revenues, net income and Adjusted EBITDA were $487.4 million, $106.5 million and $494.4 million, respectively, for the six months ended August 31, 2025.  Cash flow provided by operating activities was $218.6 million for the six months ended August 31, 2025.  The Company’s financial performance reflects strong global passenger demand for air travel, as well as robust demand for our aircraft resulting from ongoing delivery delays and supply chain disruptions experienced by Original Equipment Manufacturers.  Sustained levels of lease extension requests, together with strong gains from aircraft and engine sales, contributed positively to our financial results. 

Growth in commercial air traffic has been correlated with world economic activity and has historically grown at a rate one to two times that of global gross domestic product growth. This expansion of air travel has driven growth in the world aircraft fleet. There are approximately 27,000 commercial mainline passenger and freighter aircraft in the world fleet. Aircraft leasing companies own approximately 50% of the world’s commercial passenger jet aircraft. Under normal circumstances, we would expect the global fleet to continue expanding at a 2 to 3% average annual rate.

Although recent tariff announcements and trade policies have introduced some volatility to the global aviation sector, we believe that the current operating environment for airlines continues to be favorable for us and the wider commercial aircraft leasing industry.  We believe our portfolio, which is primarily comprised of new technology and mid-life, narrow-body aircraft, will remain attractive for our airline customers, enabling them to respond to