Aircastle’s net income dipped to $18.1 million in the third quarter ending November 30, 2024, down from $25.6 million a year prior, the company said on January 10, 2025.
Revenues for the quarter totalled $193.6 million, down from $238.7 million a year prior. Lease rental revenue was up slightly from $156.8 million to $158.4 million. Total lease revenue amounted to $173 million down from $217.7 million a year prior. The company’s adjusted EBITDA totalled $182 million in the quarter.
Operating expenses were also down from $209.5 million to $178.1 million in the November quarter.
During the quarter, the company acquired $259 million, including two A320neo family aircraft and two E2 aircraft. In addition, the company sold eight aircraft and other flight equipment for proceeds of $145 million and gains on sale of $20 million.
“Demand for aircraft remains strong and the constrained supply of new aircraft coming from OEMs is expected to continue for the remainder of this decade,” said Aircastle CEO Mike Inglese. “We’re meeting our customers’ high demand for extensions while also making disciplined trades in a competitive market. This quarter we invested approximately $260 million in additional acquisitions, 69% of which was new technology aircraft.”
As of November 30, 2024, Aircastle owned 244 aircraft and other flight equipment with a net book value of $7.1bn. The company also manages nine aircraft with a net book value of $262 million on behalf of its joint venture with Mizuho Leasing.
The weighted average age of its fleet was 9.7 years as of the end of November last year. In addition, the company’s average remaining lease term was 5.2 years.
Total assets were valued at $7.9bn. Liabilities and shareholders’ equity totalled $7.9bn. The company had a total liquidity, as of January 1, 2025, of $2.8bn, including $2.1bn of undrawn facilities, $500 million of projected adjusted operating cash flows and sales through October 1, 2025, and $200 million of unrestricted cash. The company’s adjusted net debt-to-equity of 1.8 times as of November 30, 2024.