Aircastle revenue down, income up

Aircastle Ltd. reported total revenues of $191.4 million in its third quarter, a decrease of $3.2 million or 1.7 percent from the prior year.

The Stamford firm said the decrease was due to a $9.2 million decline in lease rental and finance and sales-type lease revenues, partially offset by a $7.7 million increase in maintenance revenues; those were primarily due to the transition of one narrow-body and one wide-body aircraft during the just-completed quarter.

Net income was $57.4 million, an improvement of $30 million compared with net income of $27.4 million in the previous third quarter.

Through the first three quarters of the year, Aircastle ”“ which acquires, leases and sells commercial jet aircraft to airlines worldwide ”“ bought 28 aircraft for $635 million. For the full year, it expects to complete $1.5 billion in aircraft acquisitions.

Through September, it sold 29 aircraft for proceeds of $765 million and a net gain on sale of $35.9 million. The firm expects to record additional asset sales activity during the fourth quarter, including all five remaining classic aircraft that it owns. For the full year, it expects total sales proceeds of nearly $900 million.

As of Sept. 30, Aircastle owned 192 aircraft having a net book value of $6 billion. It also manages 13 aircraft with a net book value of $661 million on behalf of joint ventures with Ontario Teachers’ Pension Plan and IBJ Leasing of Japan.

Aircastle”™s fleet utilization during the third quarter was 100 percent.