#United States #Stamford #Aviation #Aircraft Leasing #Aircastle Limited

Aircastle Limited Reports Third Quarter 2024 Financial Results

On January 10, 2025, Aircastle Limited released its financial results for the third quarter of 2024, covering three months ending November 30, 2024. The company reported total revenues of $194 million, complemented by a net income of $18 million. Adjusted EBITDA stood at $182 million, showcasing robust financial health and operational efficiency.

Overview of Financial Highlights

Aircastle's performance reflects a strong demand in the aviation sector, particularly for mid-life aircraft. The company's fleet utilization rate exceeded 99%, indicating effective management and operations. Notably, Aircastle acquired eight aircraft during this quarter for a total investment of $259 million. These acquisitions, which included two A320neo family jets and two E2 aircraft, align with the company’s strategy of expanding its fleet with modern technology.

Moreover, the company successfully sold eight aircraft and other flight equipment, generating total proceeds of $145 million and realizing gains of $20 million. Such sales not only strengthen Aircastle’s liquidity but also enhance its fleet's overall efficiency and capabilities.

Liquidity and Financial Position

Aircastle's financial position has been positively assessed, with Moody's raising the outlook to positive due to improved fleet characteristics and strong capital management. The adjusted net debt-to-equity ratio was reported at 1.8 times by the end of November 2024. The company also maintained total liquidity of $2.8 billion as of January 1, 2025, which includes $2.1 billion in undrawn facilities and $0.5 billion in projected operating cash flows through October 2025.

Of critical importance is the $6.1 billion net book value of Aircastle's 213 unencumbered aircraft, providing additional security and flexibility in financing.

Strategic Outlook

Mike Inglese, CEO of Aircastle, emphasized that the demand for aircraft remains strong, largely driven by limited new aircraft supply from Original Equipment Manufacturers (OEMs). He noted the company's focus on meeting customer demands for lease extensions while wisely navigating a competitive market. In the past quarter, Aircastle invested about $260 million in acquisitions, with 69% directed towards new technology aircraft, which are viewed as vital for future growth.

As Aircastle commemorates its 20th anniversary, the firm continues to highlight its competitive strengths within the mid-life aircraft market. With a strong balance sheet, an investment-grade rating, and supportive shareholders such as Marubeni Corporation and Mizuho Leasing, the outlook for Aircastle appears optimistic.

Aircraft Portfolio and Management

As of November 30, 2024, Aircastle's portfolio included 244 owned aircraft and additional flight equipment worth $7.1 billion. The company also manages nine aircraft on behalf of its joint ventures with Mizuho Leasing, demonstrating not just direct ownership but also effective management capabilities in the aviation market.

In addition to the owned assets, the company continues to evaluate new opportunities and expansions, keeping a close eye on shifts in the aviation landscape to adapt swiftly to changing demands.

Conclusion

Overall, Aircastle’s third-quarter results underscore its resilience and strategic positioning in the competitive aircraft leasing market. With strong cash flows, successful aircraft transactions, and a clear focus on modernizing its fleet, Aircastle Limited is well-prepared for the future, ensuring sustainable growth in the evolving landscape of aviation finance.