Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 78

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 redeliveries.  For the three months ended August 31, 2024, we recognized additional revenue from certain cash maintenance reserves retained by us in connection with aircraft lease amendments.

Gain on sale or disposition of flight equipment.  During the three months ended August 31, 2025, we sold 4 aircraft and other flight equipment for gains totaling $23.9 million.

For the three months ended August 31, 2024, we sold 10 aircraft and other flight equipment for gains totaling $35.4 million.

Operating expenses

Total operating expenses increased $46.1 million, attributable to:

Depreciation expense increased $9.1 million, primarily attributable to an increase of $17.9 million related to 67 aircraft acquired since June 1, 2024.  This increase was partially offset by a decrease of $7.5 million related to 39 aircraft sold since June 1, 2024.

Interest, net increased $8.1 million due to a higher weighted average debt outstanding of $598.0 million.

Selling, general and administrative expenses increased $4.2 million, primarily due to higher personnel expenses.

Impairment of flight equipment.  During the three months ended August 31, 2025, the Company 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