Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 100

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 2
Chunk 100
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938 42,145 Provision for credit losses26 281 Impairment of flight equipment36,219 10,972 Maintenance and other costs8,221 8,539 Total operating expenses421,352 366,207 Other income (expense):Gain (loss) on extinguishment of debt(2,973)285      Other60,585 422 Total other income57,612 707 Income from continuing operations before income taxes and earnings of unconsolidated equity method investment123,614 56,341 Income tax provision17,949 12,600 Earnings of unconsolidated equity method investment, net of tax855 999 Net income$106,520 $44,740 

Revenues

Total revenues increased $65.5 million, attributable to:

Lease rental revenue increased $48.2 million, primarily attributable to an increase of $83.6 million related to 72 aircraft purchased since March 1, 2024.

This was partially offset by a $35.4 million decrease related to the sale of 44 aircraft since March 1, 2024.

30

Amortization of lease premiums, discounts and lease incentives:

 Six Months Ended August 31, 20252024 (Dollars in thousands)Amortization of lease premiums$(3,622)$(6,191)Amortization of lease discounts7,442 1,679 Amortization of lease incentives(2,567)(8,205)Amortization of lease premiums, discounts and incentives$1,253 $(12,717)

The amortization of lease premiums decreased by $2.6 million, primarily attributable to the full amortization of premiums on aircraft whose leases were extended.

The amortization of lease discounts increased $5.8 million due to the acquisition of aircraft.

The amortization of lease incentives decreased $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,