Company: AYR
Filing Date: 2025-01-10
Form Type: 10-Q
Source: 0001628280-25-001098
Chunk: 111

Company: Aircastle LTD
Filing Date: 2025-01-10
Form: 10-Q
Item: Part I, Item 2
Chunk 111
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 of lease premiums$(8,897)$(8,453)Amortization of lease discounts3,055 691 Amortization of lease incentives(12,163)(9,210)Amortization of lease premiums, discounts and incentives$(18,005)$(16,972)

The amortization of lease discounts increased $2.4 million due to the acquisition of aircraft.

The amortization of lease incentives increased $3.0 million due to the transition of aircraft to new lessees.

Maintenance revenue.  For the nine months ended November 30, 2024 and 2023, we recorded $76.0 million and $108.2 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 of $32.2 million is primarily attributable to fewer aircraft returns during the nine months ended November 30, 2024.

Gain on sale or disposition of flight equipment.  During the nine months ended November 30, 2024, we sold 20 aircraft and other flight equipment for gains totaling $56.9 million.

During the nine months ended November 30, 2023, we sold 18 aircraft and other flight equipment for gains totaling $34.5 million.  The nine months ended November 30, 2023 also included selling profit totaling $32.7 million related to the reclassification of 10 aircraft from operating leases to sales-type leases.

Operating expenses

Total operating expenses decreased $19.7 million, attributable to:

Depreciation expense increased $2.9 million, primarily attributable to an increase of $29.0 million related to 50 aircraft purchased since March 1, 2023.  This increase was partially offset by a decrease of $24.2 million related to 42 aircraft sold since March 1, 2023.

Interest, net increased $15.0 million due to a higher average cost of borrowing.

Selling, general and administrative expenses increased $2.4 million, primarily due to litigation expenses associated with the litigation discussed in “Update on Russian Aircraft” and the timing of litigation activities.

Provision for credit losses decreased $11.1 million.  During the nine months ended November 30, 2023, we recorded a credit provision related to the reclassification of 10 aircraft from operating to sales-type leases.  We also recognized a credit provision for debt securities received