Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 98

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 2
Chunk 98
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8 million, attributable to:

Lease rental revenue increased $27.7 million, primarily attributable to an increase of $43.1 million related to 67 aircraft purchased since June 1, 2024.

This was partially offset by a $17.2 million decrease related to the sale of 41 aircraft since June 1, 2024.

28

Amortization of lease premiums, discounts and lease incentives:

 Three Months Ended August 31, 20252024 (Dollars in thousands)Amortization of lease premiums$(1,734)$(2,949)Amortization of lease discounts3,919 985 Amortization of lease incentives(3,698)(4,104)Amortization of lease premiums, discounts and incentives$(1,513)$(6,068)

The amortization of lease discounts increased $2.9 million due to the acquisition of aircraft.

Maintenance revenue.  For the three months ended August 31, 2025 and 2024, we recorded $9.7 million and $19.4 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.  For the three months ended August 31, 2024, we recognized additional revenue from certain cash maintenance reserves retained by us in connection with aircraft lease amendments.

Gain on sale or disposition of flight equipment.  During the three months ended August 31, 2025, we sold 4 aircraft and other flight equipment for gains totaling $23.9 million.

For the three months ended August 31, 2024, we sold 10 aircraft and other flight equipment for gains totaling $35.4 million.

Operating expenses

Total operating expenses increased $46.1 million, attributable to:

Depreciation expense increased $9.1 million, primarily attributable to an increase of $17.9 million related to 67 aircraft acquired since June 1, 2024.  This increase was partially offset by a decrease of $7.5 million related to 39 aircraft sold since June 1, 2024.

Interest, net increased $8.1 million due to a higher weighted average debt outstanding of $598.0 million.

Selling, general and administrative expenses increased $4.2 million, primarily due to higher personnel expenses.

Impairment of flight equipment.  During the three months ended August 31, 2025, the Company