During its first financial quarter, the three months ended May 31, 2022, Aircastle reports net income of $8 million and Adjusted EBITDA of $153 million. Cash flows from operations up 58% compared to first quarter 2021.
During the quarter, Aircastle sold four aircraft and other flight equipment for proceeds of $58 million and a gain on sale of $4 million; purchased one new Embraer E2 aircraft leased to KLM Cityhopper with a further Embraer E2 aircraft purchased and delivered to the airline in June.
Aircastle reported that customer collections for the first quarter represented 101% of lease rental and direct financing and sales-type lease revenues, with maintenance and other revenue included $25 million of payments on letters of credit from our former Russian lessees. Interest expense down 13% compared to first quarter 2021, primarily due to repayments and lower cost of capital.
Aircastle also extended and upsized one of its unsecured revolving credit facilities by $50 million
As of July 1, 2022, the lessor’s total liquidity of $1.9 billion includes $1.2 billion of undrawn credit facilities, $0.2 billion of unrestricted cash, $0.1 billion of contracted asset sales, and $0.4 billion of projected adjusted operating cash flows through July 1, 2023. Aircastle has 210 unencumbered aircraft with a net book value of $5.3 billion
Mike Inglese, Aircastle's Chief Executive Officer, commented, "Demand for air travel continues to be strong despite challenges posed by supply chain disruptions, and concerns over inflation and fuel prices. We're seeing some improvement in Asian markets that had been lagging. We also expect travel to benefit from continued easing of restrictions, such as the United States now dropping its testing requirements for incoming international flights."
"We have strengthened our liquidity profile this quarter, better positioning us to move forward with strategic, new-technology investments. Our favorable credit rating, along with the opportunities afforded by our unique ownership arrangement with the Marubeni Corporation and Mizuho Leasing have us excited for disciplined future growth.