Company: AYR
Filing Date: 2025-01-10
Form Type: 10-Q
Source: 0001628280-25-001098
Chunk: 108

Company: Aircastle LTD
Filing Date: 2025-01-10
Form: 10-Q
Item: Part I, Item 2
Chunk 108
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529 Income from continuing operations before income taxes and earnings of unconsolidated equity method investment21,638 30,745 Income tax provision4,281 6,025 Earnings of unconsolidated equity method investment, net of tax738 925 Net income$18,095 $25,645 

Revenues

Total revenues decreased $45.2 million, attributable to:

Lease rental revenue increased $1.6 million, primarily attributable to an increase of $27.8 million related to 43 aircraft purchased since September 1, 2023.

This was partially offset by:

•a $14.6 million decrease related to the sale of 34 aircraft since September 1, 2023; and

•an $11.5 million decrease due to lease extensions, amendments, transitions and other changes.

27

Amortization of lease premiums, discounts and lease incentives:

 Three Months Ended November 30, 20242023 (Dollars in thousands)Amortization of lease premiums$(2,705)$(2,671)Amortization of lease discounts1,375 223 Amortization of lease incentives(3,958)(193)Amortization of lease premiums, discounts and incentives$(5,288)$(2,641)

The amortization of lease discounts increased $1.2 million due to the acquisition of aircraft.

The amortization of lease incentives increased $3.8 million due to the transition of aircraft to new lessees.

Maintenance revenue.  For the three months ended November 30, 2024 and 2023, we recorded $14.5 million and $58.7 million of maintenance revenue, respectively, primarily related to maintenance payments received by us and recognized into income due to scheduled aircraft lease expirations and engine redeliveries.  The decrease in maintenance revenue of $44.1 million is primarily attributable to fewer aircraft returns during the three months ended November 30, 2024.

Gain on sale or disposition of flight equipment.  During the three months ended November 30, 2024, we sold 8 aircraft and other flight equipment for gains totaling $20.5 million.

For the three months ended November 30, 2023, we sold 8 aircraft and other flight equipment for gains totaling $20.2 million.

Operating expenses

Total operating expenses decreased $31.5 million, attributable to:

Depreciation expense increased $1.0 million, primarily attributable to