Company: AYR
Filing Date: 2025-07-10
Form Type: 10-Q
Source: 0001628280-25-034715
Chunk: 94

Company: Aircastle LTD
Filing Date: 2025-07-10
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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Maintenance and other costs4,244 4,443 Total operating expenses194,800 185,735 Other expense:Loss on extinguishment of debt(2,973)—      Other(456)(304)Total other expense(3,429)(304)Income from continuing operations before income taxes and earnings of unconsolidated equity method investment61,615 19,134 Income tax provision12,721 3,572 Earnings of unconsolidated equity method investment, net of tax393 519 Net income$49,287 $16,081 

Revenues

Total revenues increased $54.7 million, attributable to:

Lease rental revenue increased $20.5 million, primarily attributable to an increase of $40.4 million related to 61 aircraft purchased since March 1, 2024.

This was partially offset by:

•an $18.3 million decrease related to the sale of 39 aircraft since March 1, 2024; and

•a $1.6 million decrease due to lease extensions, amendments, transitions and other changes.

26

Amortization of lease premiums, discounts and lease incentives:

 Three Months Ended May 31, 20252024 (Dollars in thousands)Amortization of lease premiums$(1,887)$(3,242)Amortization of lease discounts3,523 694 Amortization of lease incentives1,130 (4,101)Amortization of lease premiums, discounts and incentives$2,766 $(6,649)

The amortization of lease discounts increased $2.8 million due to the acquisition of aircraft.

The amortization of lease incentives decreased $5.2 million primarily due to the reversal of lease incentive liabilities related to 2 engine redeliveries.

Maintenance revenue.  For the three months ended May 31, 2025 and 2024, we recorded $38.1 million and $42.1 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.

Gain on sale or disposition of flight equipment.  During the three months ended May 31, 2025, we sold 14 aircraft and other flight equipment for gains totaling $30.3 million.

During the three months ended May 31, 2024, we sold 2 aircraft and other flight equipment for gains totaling $1.