Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 101

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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2025.

Gain on sale or disposition of flight equipment.  During the six months ended August 31, 2025, we sold 18 aircraft and other flight equipment for gains totaling $54.2 million.

During the six months ended August 31, 2024, we sold 12 aircraft and other flight equipment for gains totaling $36.4 million.

Operating expenses

Total operating expenses increased $55.1 million, attributable to:

Depreciation expense increased $15.5 million, primarily attributable to an increase of $33.5 million related to 72 aircraft purchased since March 1, 2024.  This increase was partially offset by a decrease of $17.4 million related to 43 aircraft sold since March 1, 2024.

Interest, net increased $12.1 million due to a higher weighted average debt outstanding of $435.6 million.

Selling, general and administrative expenses increased $2.8 million, primarily due to higher personnel costs.

Impairment of flight equipment.  During the six months ended August 31, 2025, the Company recorded impairment charges totaling $36.2 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 six months ended August 31, 2025.   The remaining impairment charges relate to other flight equipment, 1 converted narrow-body freighter aircraft, and certain transactional impairments.

During the six months ended August 31, 2024, the Company recorded impairment charges of $11.0 million related to a scheduled aircraft lease expiration and a lease amendment for 1 aircraft.  The Company recognized $24.0 million of maintenance revenue for these aircraft during the six months ended August 31, 2024.

Other income

Total other income increased by $56.9 million.  During the six 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.

31

Income tax provision

Income tax provision.  We recognized income tax provisions of $17.9 million and $12.6 million for the six months ended August 31, 2025 and 2024, respectively.  Our effective tax rate for the six months ended August 31, 2025 and