Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 104

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 2
Chunk 104
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2025 and 2024, respectively.  The increase of $174.1 million was primarily attributable to a $533.4 million increase in borrowings from secured and unsecured financings, net of repayments, during the six months ended August 31, 2025.  This was offset by a $300.0 million decrease in proceeds from the issuance of common shares and a $41.8 million increase in dividends paid.

Debt Obligations

For complete information on our debt obligations, see Note 8 in the Notes to the Unaudited Consolidated Financial Statements.

Contractual Obligations

Our contractual obligations primarily consist of principal and interest payments on debt financings, aircraft acquisitions and rent payments pursuant to our office leases.  Total contractual obligations increased to $7.3 billion at August 31, 2025, from $6.7 billion at February 28, 2025, due to higher aircraft purchase commitments, outstanding debt and interest obligations.

Capital Expenditures

From time to time, we make capital expenditures to maintain or improve our aircraft.  These expenditures include the cost of major overhauls necessary to place an aircraft in service and modifications made at the request of lessees.  For the six months ended August 31, 2025 and 2024, we incurred a total of $14.2 million and $15.0 million, respectively, of capital expenditures, including lease incentives, related to the improvement of aircraft.

As of August 31, 2025, the weighted average age by Net Book Value of our aircraft was approximately 8.6 years.  In general, the costs of operating an aircraft, including maintenance expenditures, increase with the age of the aircraft.  Our lease agreements call for the lessee to be primarily responsible for maintaining the aircraft.  Our leases may require the lessee to make periodic payments to us during the lease term to provide reserves for future major maintenance events.  Provided a lessee performs scheduled maintenance of the aircraft, we are required to reimburse the lessee for scheduled 

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maintenance payments.  In certain cases, we are also required to make lessor contributions, in excess of amounts a lessee may have paid, towards the costs of maintenance events performed by or on behalf of the lessee.  We may incur additional maintenance and modification costs in the future in the event we are required to remarket an aircraft, or a lessee fails to meet its maintenance obligations under the lease agreement.

Actual maintenance payments