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Aircastle's Second Quarter 2026 Results: Financial Highlights

On October 14, 2026, Aircastle Limited, a prominent player in the aircraft leasing industry, shared its financial performance for the second quarter ending August 31, 2026. The company reported total revenues reaching approximately $283 million, with a notable net income of $69 million. The report underscored strong revenue growth driven by a flourishing demand for air travel and an expanding fleet.

Key Financial Metrics

In analyzing the financial data, several key metrics stand out:

• - Adjusted EBITDA was reported at $247 million.
• - Aircastle successfully acquired five new aircraft for a total of $269 million, which included three Airbus A321neo and one Boeing 737MAX8.
• - The company capitalized on favorable market conditions by selling 11 aircraft and additional flight equipment, resulting in proceeds of $243 million and gains on sales amounting to $38 million.
• - Notably, as of August 31, 2026, newer technology aircraft constituted 54% of the fleet's net book value.

Liquidity and Fleet Management

Aircastle has made significant strides in maintaining a healthy liquidity position. The company redeemed all outstanding Series A Preference Shares and reported that a substantial 98% of its total debt was unsecured as of the end of August 2026. The adjusted net debt-to-equity ratio stood at 2.4 times.

• - As of October 1, 2026, Aircastle's total liquidity was approximately $2.8 billion, encompassing $2.0 billion of undrawn facilities alongside $0.7 billion anticipated in adjusted operating cash flows and projected sales through October 1, 2027. The unrestricted cash amounted to $0.1 billion, and the company boasted 259 unencumbered aircraft valued at a net book total of $8.2 billion.

CEO’s Insight

Mike Inglese, CEO of Aircastle, commented on the robust results: "The continuing strong demand for travel, combined with limited aircraft supply, has sustained high lease rates and asset values. Our disciplined approach to capital deployment has yielded substantial gains on sales, leading to a robust second-quarter net income. Year to date, we have invested $386 million in aircraft acquisitions and are entering the second half of our fiscal year with strong liquidity and confidence in our service capabilities and investment opportunities."

Aircraft Fleet Overview

As of August 31, 2026, Aircastle owned a total of 263 aircraft and other flight equipment valued at a net book sum of $8.3 billion, while also managing an additional five aircraft.

• - The company has observed minor fluctuations in its fleet numbers compared to the previous year.
• - The fleet's weighted average age at this time is approximately 9.0 years, with a remaining average lease term of 5.3 years.
• - The fleet usage during the second quarter was impressive, with a utilization rate of 97.4%. This comes despite challenges such as certain aircraft being previously leased to a customer that has ceased operations.

Conclusion

Overall, Aircastle's second quarter 2026 results reflect a strong financial standing, underpinned by strategic acquisitions, prudent financial management, and an evolving fleet that aligns with market demand. The path forward seems promising as the company builds on this momentum moving into the latter part of the fiscal year. As they continue to adapt to the dynamic aviation landscape, Aircastle remains well-positioned to meet the needs of its customers and seize emerging opportunities in the market.