Company: AYR
Filing Date: 2025-01-10
Form Type: 10-Q
Source: 0001628280-25-001098
Chunk: 11

Company: Aircastle LTD
Filing Date: 2025-01-10
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 assumptions and record future impairment charges.  While we believe that the estimates and related assumptions used in our recoverability assessments are appropriate, actual results could differ from those estimates.

Note 3.  Flight Equipment Held for Lease, Net 

The following table summarizes the activities for the Company’s flight equipment held for lease for the nine months ended November 30, 2024:AmountBalance at February 29, 2024$6,940,502 Additions621,932 Depreciation(262,941)Disposals and transfers to net investment in leases and held for sale(430,456)Impairments(10,972)Balance at November 30, 2024$6,858,065 Accumulated depreciation$2,159,032 Update on Russian Aircraft The Company leased 9 aircraft to Russian airlines that were unrecoverable following Russia’s invasion of Ukraine in February 2022.  The Company filed claims against the reinsurers of the Russian airlines’ insurance and the Company’s contingent and possessed insurance policies (“C&P Policies”) seeking indemnity.During the year ended February 29, 2024, the Company received cash settlement proceeds of $43.2 million in settlement of certain of the Company’s claims under the insurance policies in respect of 4 aircraft formerly on lease to 2 Russian airlines.  The Company will continue to explore mitigating losses with respect to the 5 other aircraft that were not included in the prior settlement, but it is uncertain whether this will result in any further settlements and, if so, in what amount.The receipt of the insurance settlement proceeds serve to mitigate, in part, the Company’s losses under its aviation insurance policies.  The Company reserves all rights under its C&P Policies.  The collection, timing and amount of any future recoveries, including those related to insurance litigation, remain uncertain.  Accordingly, at this time, the Company can give no assurance as to when or what amounts it may ultimately collect with respect to these matters.

12

Aircastle Limited and SubsidiariesNotes to Unaudited Consolidated Financial Statements(Dollars in thousands, except per share amounts)November 30, 2024

Note 4. Lease Rental Revenues

Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at November 30, 2024 were as follows:Year Ending February 28/29,Amount(1)2025 (Remainder of fiscal year)$165,276