Aircraft lessor, Aircastle, has reported total revenue of $192.4 million for the three months to end September 2020 – down from $236.9million in the year-ago period. Net income fell to $5.8 million, with EBITDA at $181.1 million
For the three months ended September 30, 2020 collections represented approximately 73% of lease rental and direct financing and sales-type lease revenues.
As of October 30, 2020, Aircastle’s total liquidity of $2.1bn includes $1.25bn of undrawn credit facilities, unrestricted cash of $432 million, $120 million of contracted asset sales, and $340 million of projected operating cash flows through October 30, 2021
The leasing company has 226 unencumbered aircraft with a net book value of $5.5 billion. Aircastle confirms that it has agreements in place to sell 21 narrow body aircraft as they come off lease.
During the period, Aircastle issued $650 million of 5.25%, senior unsecured notes due in 2025.
Moody’s has affirmed Aircastle’s senior unsecured debt rating at Baa3.
Mike Inglese, Aircastle’s Chief Executive Officer, commented, “We are optimistic about the eventual recovery of global aviation and the global airline industry. While it is impossible to predict the timing of recovery, we are confident passengers will return, and we are confident about the increasingly important role operating leasing will play in facilitating the industry’s recovery.”
“Aircastle’s fleet of predominantly mid-age, single-aisle, fuel efficient aircraft represents a strong value proposition for capital constrained, sensibly managed airlines around the globe. Our management team is deep and experienced, and we enjoy the strong shareholder support of Marubeni Corporation and Mizuho Leasing. Driven by our strategic ownership, management’s track record, minimal forward commitments, strong liquidity and conservative balance sheet, Aircastle’s investment grade credit rating was recently affirmed at Baa3 by Moody’s.”
Aircastle reports that it continues to grant deferrals to help certain clients manage through the crisis. As of October 30, 2020, the lessor had executed documents or had approved deferral arrangements with 40 lessees representing approximately 50% of its customer base. The amount deferred currently approximates $101 million, which represented approximately 14% of reported lease rental and direct financing and sales-type lease revenues for the trailing twelve months ended September 30, 2020.