Company: AYR
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001628280-25-019189
Chunk: 127

Company: Aircastle LTD
Filing Date: 2025-04-23
Form: 10-K
Item: Item 7
Chunk 127
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8,715 12,081 Impairment of flight equipment19,391 55,240 Maintenance and other costs16,938 29,884 Total operating expenses735,049 756,611 Other income (expense):Gain on extinguishment of debt285 — Other56,247 5,571 Total other income:56,532 5,571 Income from continuing operations before income taxes142,458 104,376 Income tax provision21,948 23,265 Earnings of unconsolidated equity method investment, net of tax3,103 2,205 Net income$123,613 $83,316 

Revenues:

Total revenues decreased $34.4 million, attributable to:

Lease rental revenue increased $48.8 million, primarily attributable to an increase of $114.8 million related to 80 aircraft purchased since March 1, 2023.

This was partially offset by:

•a $53.5 million decrease related to the sale of 47 aircraft since March 1, 2023; and

•a $12.5 million decrease due to lease extensions, amendments, transitions, and other changes.

Direct financing and sales-type lease revenue increased $4.8 million, primarily related to the change in classification of 12 aircraft to sales-type leases, partially offset by the sale of 2 aircraft since March 1, 2023.

34

Amortization of lease premiums, discounts and incentives:

 Year Ended February 28/29, 20252024 (Dollars in thousands)Amortization of lease premiums$(11,128)$(11,112)Amortization of lease discounts5,773 931 Amortization of lease incentives(16,327)(10,239)Amortization of lease premiums, discounts and incentives$(21,682)$(20,420)

The amortization of lease discounts increased $4.8 million due to the acquisition of aircraft.

The amortization of lease incentives increased $6.1 million due to the transition of aircraft to new lessees.

Maintenance revenue.  For the year ended February 28, 2025, and February 29, 2024, we recorded $90.5 million and $132.2 million of maintenance revenue, respectively, primarily related to maintenance payments received by us and recognized into income as a result of scheduled aircraft lease expirations and engine redeliveries.  The decrease in