Aircastle Limited Reports Strong Financial Performance in Latest 10-Q Filing

Aircastle Limited reported significant financial improvements in its latest 10-Q filing for the six months ended August 31, 2024. Total revenues reached $421.8 million, up from $386.4 million in the same period of 2023, reflecting a robust increase driven by higher lease rental income and gains from the sale of flight equipment. Lease rental revenue increased to $324.9 million from $297.1 million, primarily due to the acquisition of 43 aircraft since March 1, 2023. Additionally, gains on the sale of flight equipment rose to $36.4 million from $14.3 million.

Net income for the six months ended August 31, 2024, was $44.7 million, a notable increase from $28.3 million in the prior year. The net income available to common shareholders also improved, rising to $34.2 million from $17.8 million. The company’s operating performance was further highlighted by an increase in EBITDA, which reached $374.3 million compared to $340.9 million in the previous year.

Aircastle's cash and cash equivalents surged to $432.6 million as of August 31, 2024, up from $130.0 million at the end of February 2024. This increase was bolstered by net cash provided by operating activities of $204.9 million, compared to $186.4 million in the prior year. The company also reported proceeds of $329.3 million from the sale of aircraft and other flight equipment during the same period.

The company’s total assets increased to $7.8 billion, while total liabilities decreased to $5.4 billion, resulting in total shareholders’ equity rising to $2.5 billion from $2.1 billion. The company’s financial position was further strengthened by a successful issuance of $500 million in senior notes due 2031, which will mature on October 1, 2031.

Strategically, Aircastle continues to manage its fleet effectively, owning and managing 253 aircraft leased to 78 airline customers across 46 countries. The weighted average age of the fleet is approximately 9.7 years, with a high utilization rate of 99%. The company has also committed to purchasing 11 additional aircraft for $377.2 million, with deliveries scheduled through the first quarter of 2028.

Aircastle's operational challenges include ongoing legal matters and the impact of geopolitical events, particularly concerning aircraft leased to Russian airlines, which have become unrecoverable. The company has filed insurance claims related to these assets, receiving $43.2 million in settlements for four aircraft, while exploring options for the remaining five.

Overall, Aircastle Limited's financial performance for the six months ended August 31, 2024, reflects a strong recovery and strategic growth, positioning the company favorably in the commercial aviation leasing market.