Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 81

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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2 customers who filed for bankruptcy protection. For these aircraft, the Company recognized $4.9 million of maintenance and lease rentals received in advance into revenue during the six months ended August 31, 2025.   The remaining impairment charges relate to other flight equipment, 1 converted narrow-body freighter aircraft, and certain transactional impairments.

During the six months ended August 31, 2024, the Company recorded impairment charges of $11.0 million related to a scheduled aircraft lease expiration and a lease amendment for 1 aircraft.  The Company recognized $24.0 million of maintenance revenue for these aircraft during the six months ended August 31, 2024.

Other income

Total other income increased by $56.9 million.  During the six months ended August 31, 2025, the Company entered into settlement agreements with certain additional insurers under the Company’s C&P Policies for an aggregate settlement amount of $55.7 million.

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Income tax provision

Income tax provision.  We recognized income tax provisions of $17.9 million and $12.6 million for the six months ended August 31, 2025 and 2024, respectively.  Our effective tax rate for the six months ended August 31, 2025 and 2024 was 14.5% and 22.4%, respectively.  The decrease in our effective tax rate is primarily attributable to the mix of profits between the various jurisdictions in which we operate and the utilization of Bermuda net operating losses.

Aircraft Valuation

For complete information on impairment of flight equipment, refer to Note 2 in the Notes to the Unaudited Consolidated Financial Statements and “Comparative Results of Operations” above.

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RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

See Note 1 – “Summary of Significant Accounting Policies – Organization and Basis of Presentation” in the Notes to the Unaudited Consolidated Financial Statements above.

RECENT UNADOPTED ACCOUNTING PRONOUNCEMENTS

See Note 1 – “Summary of Significant Accounting Policies – Recent Accounting Pronouncements” in the Notes to the Unaudited Consolidated Financial Statements above.

LIQUIDITY AND CAPITAL RESOURCES

Our business is very capital intensive, requiring significant investments in order to expand our fleet and to maintain and improve our existing portfolio.  Our operations have historically generated a significant amount of cash, primarily from lease rentals and maintenance collections.  We have also met our liquidity and capital resource needs by utilizing several