Aircastle posted higher total revenue for the first quarter of 2019 of $11.2 million, which was offset by higher depreciation of $9.7 million, driven by the effect of net aircraft acquired since the beginning of 2018. Also affecting the figure was higher maintenance expense of $6.4 million due to transition related costs, higher interest expense of $6.4 million from higher average debt balances; and higher combined hedging related costs and income taxes of $9.2 million.
Aircastle confirmed that it has recovered and transitioned ten A320s from Avianca Brasil to LATAM, and is in the process of recovering its aircraft from Jet Airways.
Overall, Aircastle's total revenues were $213.9 million,up 5.5% from the previous period last year, representing an increase of $11.2 million. The increase was driven by a $2.8 million rise in lease rental and direct financing and sales-type lease revenues, a $6.2 million increase in the gain on the sale of flight equipment, and a $4.4 million increase in maintenance revenues.
Aircastle's net income was reported to be down from $34.8 million to $22.7 million in its Q1 2019 financial results. The lessor's adjusted net income was £39.6 million, down $17.1 million from the first three months of 2018.
Adjusted EBITDA for the first quarter was $199.3 million, an increase of $8.2 million, or 4.3%, from the first quarter of 2018. The increase was due to higher rental revenues, higher maintenance revenues, and higher gains from aircraft sales, partly offset by higher maintenance related costs.
Commenting on the results, Mike Inglese, Aircastle's chief executive officer, said: "Aircastle continued to deliver strong financial results in the first quarter of 2019. By focusing on value-added growth opportunities, we have acquired or committed to acquire $830 million of attractively priced aircraft thus far in 2019, while simultaneously improving the quality and composition of our fleet. Our acquisitions consist entirely of modern, narrow-body aircraft where we continue to see very strong demand from our airline customers.
Inglese continued, "Our asset management skills were recently highlighted, with the successful recovery and transition of ten Airbus A320-200 aircraft from Avianca Brazil to LATAM Airlines Group. In line with our earlier expectations, the aircraft will begin to return to service during the second quarter. In addition, we have lease commitments and are in the process of transitioning the seven Boeing 737 family aircraft that were previously on-lease with Jet Airways."
"As a professional manager of commercial aircraft, we will continue to be responsible stewards of investor capital. Since our initial public offering in 2006 we have acquired nearly $16 billion of aircraft, paid out $880 million of dividends, and have repurchased more than $270 million of our shares at an average price of $14.57.
"We are dedicated to creating long-term value for our shareholders, and our sensible, balanced capital allocation strategy positions us well moving forward.