Lessor Aircastle booked a total revenue of $260 million during the first quarter of the year, ending May 31, 2025, up from $205.1 million during the same period of the prior year.
The company also saw a 13% increase in rental revenue compared to first quarter 2024, totalling $183 million.
Aircastle recorded a net income of $49 million for the quarter, with adjusted EBITDA totalling $232 million.
Across the first fiscal quarter, Aircastle acquired 12 aircraft for a total value of $465 million, this includes five 737 MAX 9 aircraft on lease to United. The company sold 14 aircraft with an average age of 19 years for net proceeds of $227 million and gains on sale of $30 million, with fleet utilisation over 99%
Mike Inglese, Aircastle CEO, said during its earnings call that demand for air travel is expected to grow in 2025, with airline profitability improving due to lower oil and jet fuel prices. While demand growth remains positive overall, citing a particularly positive trading environment for the leasing space, which continues to attract new capital.
During the quarter, Aircastle issued a new $600 million unsecured term loan with 18 lenders and repaid $392 million in secured term financing, resulting in 98% of its total debt being unsecured as of May 31, 2025.
The company reported an adjusted net debt-to-equity ratio of 2.2 times and total liquidity of $2.6bn as of July 1, 2025. This liquidity includes $2bn in undrawn facilities, $500 million in projected adjusted operating cash flows and sales through July 1, 2026, and $100 million in unrestricted cash.
Looking ahead, Roy Chandran, the company's CFO, stated that Aircastle has made a 'compelling' case to S&P and Moody's for a rating upgrade, noting that the company is now in a significantly better position compared to its pre-COVID status.
As of May 31, 2025, Aircastle owned 264 aircraft and other flight equipment having a net book value of $8.1bn. The company also manage eight aircraft with a net book value of $241 million on behalf of its joint venture with Mizuho Leasing.