Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 32

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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5.6 million, primarily due to the reversal of lease incentive liabilities related to 2 engine redeliveries.

Maintenance revenue.  For the six months ended August 31, 2025 and 2024, we recorded $47.8 million and $61.5 million of maintenance revenue, respectively, primarily related to maintenance payments received by us and recognized into income as a result of scheduled aircraft lease expirations and engine redeliveries.  The decrease in maintenance revenue is primarily attributable to fewer aircraft and engine returns during the six months ended August 31, 2025.

Gain on sale or disposition of flight equipment.  During the six months ended August 31, 2025, we sold 18 aircraft and other flight equipment for gains totaling $54.2 million.

During the six months ended August 31, 2024, we sold 12 aircraft and other flight equipment for gains totaling $36.4 million.

Operating expenses

Total operating expenses increased $55.1 million, attributable to:

Depreciation expense increased $15.5 million, primarily attributable to an increase of $33.5 million related to 72 aircraft purchased since March 1, 2024.  This increase was partially offset by a decrease of $17.4 million related to 43 aircraft sold since March 1, 2024.

Interest, net increased $12.1 million due to a higher weighted average debt outstanding of $435.6 million.

Selling, general and administrative expenses increased $2.8 million, primarily due to higher personnel costs.

Impairment of flight equipment.  During the six months ended August 31, 2025, the Company recorded impairment charges totaling $36.2 million. This amount includes $22.4 million related to aircraft leased to 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