Company: AYR
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001628280-25-019189
Chunk: 128

Company: Aircastle LTD
Filing Date: 2025-04-23
Form: 10-K
Item: Item 7
Chunk 128
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 maintenance revenue of $41.7 million is primarily attributable to fewer aircraft returns during the year ended February 28, 2025.

Gain on sale or disposition of flight equipment.  During the year ended February 28, 2025, we sold 27 aircraft for gains totaling $77.2 million.  During the year ended February 29, 2024, we sold 28 aircraft and recognized gains on the sale or disposition of aircraft totaling $121.6 million, which included $43.2 million related to settlement proceeds received in respect of 4 aircraft formerly on lease to Russian airlines, and gains of $32.7 million related to the change in classification of 10 aircraft from operating leases to sales-type leases.

Operating Expenses:

Total operating expenses decreased $21.6 million attributable to:

Depreciation expense increased $7.4 million, primarily attributable to an increase of $42.1 million related to 80 aircraft purchased since March 1, 2023.  This was partially offset by a decrease of $35.0 million related to 49 aircraft sold since March 1, 2023.

Interest, net increased $18.9 million due primarily to a higher average cost of borrowing.

Selling, general and administrative expenses increased $4.3 million primarily due to an increase in personnel costs and ongoing Russian litigation expenses.

Provision for credit losses.  During the year ended February 28, 2025, we recorded a credit provision of $8.7 million for certain restructured receivables as part of an airline restructuring.  During the year ended February 29, 2024, we recorded a credit provision of $12.1 million primarily related to investment in leases as a result of 12 aircraft that whose classification was changed from operating leases to sales-type leases.  We also recognized a credit provision for debt securities received by us as part of an airline restructuring, as well as certain restructured receivables, during the year ended February 29, 2024.  See Note 15 in the Notes to Consolidated Financial Statements.

Impairment of aircraft.  During the year ended February 28, 2025, the Company recorded impairment charges totaling $19.4 million, including $11.0 million of transactional impairments related to a scheduled lease expiration and an aircraft lease amendment.  The Company recognized $24.0 million of maintenance revenue for these aircraft during the year ended February 28, 2025.

During the year ended February