Aircastle reports full year performance

US-based aircraft lessor, Aircastle, booked revenue of $855.4 million in the 12 months to end February 2024 (FY23), with net income of $83 million compared to $63 million in the prior year period. For the three months to end February 2024, Aircastle’s revenue was $203 million. With net income of $29 million. During the full fiscal year, Aircastle  acquired 39 aircraft for $1.2bn and sold 28 aircraft and other equipment with an average age of 18 years for $362 million, booking a $122 million gain on sale, which includes $43 million settlement for aircraft formerly on lease to two Russian airlines. Aircastle executed 161 transaction during the year. As of February 29, 2024, Aircastle owned 243 aircraft and other flight equipment having a net book value of $7.2bn. The lessor also manages nine aircraft with a net book value of $272 million on behalf of its joint venture with Mizuho Leasing. “We're seeing passenger travel demand transition from recovery to growth in many major markets. Airlines want to build upon 2023's profitability with additional aircraft,” said Mike Inglese, Aircastle’s Chief Executive Officer. “In fiscal 2023, our team successfully completed $1.2 billion in new acquisitions, returning us to pre-pandemic trading levels. Our new technology fleet continues to grow while our current technology aircraft are meeting the high demand for placements and extensions. Looking ahead, the yearslong forecasted shortage of narrow-body passenger aircraft supports our unique business model.” Aircastle raised $1.7bn in new financings comprising $1.3bn in unsecured senior notes and $395 million from extended and upsized revolving credit facilities. The lessor has received $200 million of shareholder equity, the first tranche of a $500 million commitment; the remaining $300 million is expected in the first quarter of fiscal year 2024. As of April 1, 2024, Aircastle has total liquidity of $3.0bn, which includes $2.1 billion of undrawn credit facilities, $500 million of projected adjusted operating cash flows through April 1, 2025, $300 million of committed capital and $100 million of unrestricted cash. It has 205 unencumbered aircraft and other flight equipment with a net book value of $5.8bn. “On the funding side of our business, this fiscal year we sourced $1.7 billion in new financing and received a new $500 million shareholder commitment from Marubeni Corporation and Mizuho Leasing,” confirmed Inglese. “This outstanding shareholder support along with our ability to raise capital and execute quickly on transactions has us optimistic about disciplined future growth.”