Company: AYR
Filing Date: 2025-01-10
Form Type: 10-Q
Source: 0001628280-25-001098
Chunk: 33

Company: Aircastle LTD
Filing Date: 2025-01-10
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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11.0 million of transactional impairments related to a scheduled lease expiration and a lease amendment of 1 aircraft.  The Company recognized $24.0 million of maintenance revenue for these aircraft during the nine months ended November 30, 2024.

During the nine months ended November 30, 2023, the Company recorded impairment charges of $37.2 million, 

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including $25.5 million of transactional impairments related to scheduled aircraft lease expirations and engine redeliveries.  The Company recognized $37.7 million of maintenance revenue for these aircraft and engines.

Maintenance and other costs decreased $11.1 million, primarily attributable to fewer aircraft transitions.  The nine months ended November 30, 2023 included higher costs due to the timing of transition of aircraft to new lessees, which largely related to aircraft for which the previous lease was terminated early, and the aircraft was repossessed from the prior operator.

Income tax provision

Income tax provision.  We recognized income tax provisions of $16.9 million and $15.3 million for the nine months ended November 30, 2024 and 2023, respectively.  Our effective tax rate for the nine months ended November 30, 2024 and 2023 was 21.6% and 22.7%, respectively.  The decrease in our effective tax rate is primarily attributable to the mix of profits in taxable and non-taxable jurisdictions.

Aircraft Valuation

For complete information on impairment of flight equipment, refer to Note 2 in the Notes to the Unaudited Consolidated Financial Statements and “Comparative Results of Operations” above.

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RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

See Note 1 – “Summary of Significant Accounting Policies – Organization and Basis of Presentation” in the Notes to the Unaudited Consolidated Financial Statements above.

RECENT UNADOPTED ACCOUNTING PRONOUNCEMENTS

See Note 1 – “Summary of Significant Accounting Policies – Recent Accounting Pronouncements” in the Notes to the Unaudited Consolidated Financial Statements above.

LIQUIDITY AND CAPITAL RESOURCES

Our business is very capital intensive, requiring significant investments in order to expand our fleet and to maintain and improve our existing portfolio.  Our operations have historically generated a significant amount of cash, primarily from lease rentals and maintenance collections, including end-of-lease maintenance payments.  We have also met our liquidity and capital resource needs by utilizing several