Aircastle has reported its third quarter results for 2010 with net income of $8.6 million and adjusted net income of $12.6 million. The results include pre-tax impairment charges of $7.3 million related to the sale of the only remaining 737-500 classic aircraft in the company’s fleet and an early lease termination of one 737-300 classic. The impairment charges were partially offset by maintenance, lease incentives and other revenues totalling $2.8 million, for a net pre-tax impact of $4.5 million.
“We expect to complete more than half a billion dollars in attractive aircraft investments during the second half of 2010, including two new A330-200F freighter aircraft from our order stream,” says Ron Wainshal, Aircastle’s CEO. “Aircastle also has approximately $700 million of additional built-in growth over the next eighteen months from our new A330 program. With more than $310 million in unrestricted cash at the end of the third quarter 2010 and strong cash flows from our business, we are in an excellent position to benefit from the continuing industry recovery.”
Lease rental revenue for the third quarter was $133.5 million, up $5.2 million or 4.1% over last year. Aircastle credits this rise to the impact of lease revenues on aircraft acquired in the quarter exceeding lease revenues on dispositions by $5.0 million. Total revenue for the perid was $132.2 million, down $33.5 million from the previous year, which reflects lower maintenance revenue of $28.8 million due to fewer scheduled and unscheduled lease transitions in 2010 compared to the same period in 2009 and lower other revenue, reflecting $9.4 million of lease termination revenue in 2009.