Company: AYR
Filing Date: 2025-07-10
Form Type: 10-Q
Source: 0001628280-25-034715
Chunk: 10

Company: Aircastle LTD
Filing Date: 2025-07-10
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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Balance at February 28, 2025$7,644,867 Additions500,425 Depreciation(95,236)Disposals and transfers to net investment in leases and held for sale(151,423)Impairments(5,066)Balance at May 31, 2025$7,893,567 Accumulated depreciation$1,855,110 Update on Russian AircraftThe 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 years ended February 28, 2025 and February 29, 2024, the Company received aggregate cash settlement proceeds of $92.7 million in settlement of certain of the Company’s claims under the Russian airlines’ insurance and the Company’s C&P Policies.The receipt of the insurance proceeds serve to mitigate, in part, the Company’s losses under its aviation insurance policies.  The Company remains in settlement discussions with some of the remaining insurers under its C&P Policies.  However, 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.Subsequent to May 31, 2025, the Company entered into a settlement agreement with certain additional C&P insurers for an aggregate settlement amount of $14.7 million, which will be recognized in its consolidated statement of income in the second quarter of 2025.

Note 4. Lease Rental Revenues

Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at May 31, 2025, were as follows:Year Ending February 28/29,Amount(1)2026 (Remainder of fiscal year)$547,634 2027663,409 2028570,072 2029491,429 2030397,504 Thereafter1,143,151 Total$3,813,199 _______________(1)Reflects impact of lessee lease rental deferrals.

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Aircastle Limited and SubsidiariesNotes to Unaudited Consolidated Financial Statements(Dollars in thousands, except per share amounts)May 31, 2025