Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 80

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 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, 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