Company: AYR
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001628280-25-019189
Chunk: 88

Company: Aircastle LTD
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 88
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 labor costs and insurance costs and coverages;

•manufacturer production levels and reliability of new aircraft and engine types resulting from production quality issues and technical or other difficulties;

•restrictions in labor contracts and labor difficulties, including pilot shortages;

•availability of financing, including covenants in financings, terms imposed by credit card issuers, collateral posting requirements contained in hedging contracts and the ability of airlines to make or refinance principal payments;

•economic conditions, including economic downturns or recession, financial system distress and currency fluctuations;

•aircraft accidents;

•the continuing availability of government support through subsidies, loans, guarantees, equity investments;

•changing political conditions, including risk of protectionism, travel restrictions, or trade barriers;

•geopolitical events, including war, terrorism, epidemic or pandemic diseases and natural disasters;

•impact of climate change and emissions on demand and supply of air travel;

•cyber risk, including information hacking, viruses, ransomware and malware; and

•governmental regulation of, including noise regulations, emissions regulations, climate change initiatives, and aircraft age limitations.

These factors, and others, may lead to defaults by our customers, may delay or prevent aircraft deliveries or transitions, may result in payment or other lease term restructurings, may increase our costs from repossessions or may reduce our revenues due to downtime or lower re-lease rates.

Adverse currency movements could negatively impact the profitability of our lessees.

Many of our lessees are exposed to currency risk as they earn revenues in local currencies while a significant portion of their liabilities and expenses, including fuel, debt service, and lease payments are denominated in U.S. dollars. If the local currency is devalued, our lessees may not be able to increase revenue sufficiently to offset the impact of exchange rates on these expenses.  In addition, the implementation of strict currency controls by local governments may make it difficult for our lessees to access U.S. dollars.  Currency depreciation and currency controls could impact the ability of customers to meet their contractual obligations in a timely manner.  Shifts in foreign exchange rates can be significant, are difficult to predict, and can occur quickly.

Increases in fuel prices could negatively impact the profitability of our lessees.

Fuel costs represent a major expense to airlines and fluctuate widely.  Airlines may not be able to successfully manage their exposure to fuel prices and significant changes could materially affect their operating results. Airlines may not be able to pass on increases in fuel prices to their customers by