Company: AYR
Filing Date: 2025-01-10
Form Type: 10-Q
Source: 0001628280-25-001098
Chunk: 30

Company: Aircastle LTD
Filing Date: 2025-01-10
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 cost of borrowing and a higher weighted average debt outstanding of $10.4 million.

Provision for credit losses decreased $5.3 million.  During the three months ended November 30, 2023, we recorded a credit provision for debt securities received by us as a part of an airline restructuring, as well as certain restructured receivables. 

Impairment of aircraft.  During the three months ended November 30, 2024, the Company recorded impairments totaling $8.4 million related to flight equipment that was recorded as a component of Other Assets and subject to tear-down and parts sales programs.

During the three months ended November 30, 2023, the Company recorded impairment charges of $35.0 million, 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.

We also recorded impairments of $9.5 million resulting from the completion of our annual fleet review during the three months ended November 30, 2023.

Maintenance and other costs decreased $2.2 million, primarily attributable to fewer aircraft transitions.  The three 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.

28

Other income

Total other income increased $4.6 million.  The three months ended November 30, 2024, included additional cash received in connection with claims settlements from various airline customers that had entered into bankruptcy proceedings or similar-type restructurings.

Income tax provision

Income tax provision.  Our income tax provision was $4.3 million and $6.0 million and our effective tax rate was 19.8% and 19.6% for the three months ended November 30, 2024 and 2023, respectively.

Results of Operations for the nine months ended November 30, 2024, as compared to the nine months ended November 30, 2023:

 Nine Months Ended November 30, 20242023 (Dollars in thousands)Revenues:Lease rental revenue$483,389 $453,906 Direct financing and sales-type lease revenue16,177 10,993 Amortization of lease premiums, discounts and incentives(