Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 99

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 2
Chunk 99
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 recorded total impairment charges of $31.2 million.  This amount includes $22.4 million related to aircraft leased to 2 customers who filed for bankruptcy protection.  For these aircraft, the Company recognized $4.9 million of maintenance and lease rentals received in advance into revenue during the three months ended August 31, 2025.  The remaining impairment charges relate to other flight equipment recorded within other assets that are subject to tear-down and parts sales programs and 1 converted narrow-body freighter aircraft.

During the three months ended August 31, 2024, the Company recorded a transactional impairment charge of $5.8 million related to a lease amendment for 1 aircraft.  The Company recognized $6.0 million of maintenance revenue for this aircraft during the three months ended August 31, 2024.

Other income

Total other income increased by $60.0 million.  During the three months ended August 31, 2025, the Company entered into settlement agreements with certain additional insurers under the Company’s C&P Policies for an aggregate settlement amount of $55.7 million.

Income tax provision

Income tax provision.  Our income tax provision was $5.2 million and $9.0 million, and our effective tax rate was 8.4% and 24.3% for the three months ended August 31, 2025 and 2024, respectively.  The decrease in the income tax provision is primarily attributable to the mix of profits between the various jurisdictions in which we operate and the utilization of Bermuda net operating losses.

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Results of Operations for the six months ended August 31, 2025, as compared to the six months ended August 31, 2024:

 Six Months Ended August 31, 20252024 (Dollars in thousands)Revenues:Lease rental revenue$373,159 $324,949 Direct financing and sales-type lease revenue10,333 10,883 Amortization of lease premiums, discounts and incentives1,253 (12,717)Maintenance revenue 47,840 61,527 Total lease revenue432,585 384,642 Gain on sale or disposition of flight equipment54,178 36,426 Other revenue591 773 Total revenues487,354 421,841 Operating expenses:Depreciation192,578 177,033 Interest, net139,370 127,237 Selling, general and administrative44,