Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 83

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 83
---
 six months ended August 31, 2025 and 2024, respectively.  The increase was primarily attributable to higher customer collections related to the growth of our fleet and higher lease rates on lease extensions during the six months ended August 31, 2025.  In addition, cash paid for interest was lower due to the timing of interest payments.

Investing Activities:

Cash flow used in investing activities was $629.6 million and $7.5 million for the six months ended August 31, 2025 and 2024, respectively.  The net increase of $622.2 million was primarily attributable to an increase of $644.8 million in the acquisition and improvement of flight equipment.  Additionally, we received cash proceeds of $40.9 million in settlement of the Company’s claims against certain of the insurers under its C&P Policies — see Note 3 to the Notes to Unaudited Consolidated Financial Statements.  This was partially offset by a decrease of $29.8 million from the sale or disposition of aircraft and other flight equipment during the six months ended August 31, 2025.

Financing Activities:

Cash flow provided by financing activities was $279.3 million and $105.2 million for the six months ended August 31, 2025 and 2024, respectively.  The increase of $174.1 million was primarily attributable to a $533.4 million increase in borrowings from secured and unsecured financings, net of repayments, during the six months ended August 31, 2025.  This was offset by a $300.0 million decrease in proceeds from the issuance of common shares and a $41.8 million increase in dividends paid.

Debt Obligations

For complete information on our debt obligations, see Note 8 in the Notes to the Unaudited Consolidated Financial Statements.

Contractual Obligations

Our contractual obligations primarily consist of principal and interest payments on debt financings, aircraft acquisitions and rent payments pursuant to our office leases.  Total contractual obligations increased to $7.3 billion at August 31, 2025, from $6.7 billion at February 28, 2025, due to higher aircraft purchase commitments, outstanding debt and interest obligations.

Capital Expenditures

From time to time, we make capital expenditures to maintain or improve our aircraft.  These expenditures include the cost of major overhauls necessary to place an aircraft in service and modifications made at the request of lessees.