#United States #Stamford #Aviation #Aircastle #B737-MAX9

Aircastle Reports First Quarter 2025 Results

Aircastle Limited has announced its financial results for the first quarter of 2025, showing impressive growth and solid performance indicators. The company reported total revenues of $260 million, with a net income of $49 million, reflecting a remarkable 13% increase in rental revenue compared to the same quarter in the previous year. This growth showcases Aircastle's effective management and strategic investments in the aviation sector.

The highlights of Aircastle's performance for the three months ending May 31, 2025, include an Adjusted EBITDA of $232 million and the acquisition of 12 aircraft, which were purchased for a total of $465 million. Notably, among the acquisitions were five Boeing 737 MAX 9 aircraft, now on lease to United Airlines, indicating a focus on modern and efficient aircraft in its fleet. As of the end of May, the company's fleet consisted of new technology aircraft, which made up 46% of the fleet's net book value. This strategic shift towards newer models is expected to enhance operational efficiency and capital returns.

Furthermore, Aircastle sold 14 older aircraft with an average age of 19 years, netting $227 million in proceeds and achieving gains on these sales of $30 million. The company reported a fleet utilization rate exceeding 99%, indicating a highly efficient operation and a strong demand for its aircraft.

Liquidity and Financing Strategies

Aircastle also bolstered its liquidity position through strategic financial maneuvers. The company issued a new $600 million unsecured term loan with 18 lenders, further enhancing its capacity to fund operations and growth. Additionally, it repaid $392 million in secured term financing, leading to an impressive 98% of total debt now being unsecured. As of May 31, 2025, the adjusted net debt-to-equity ratio stood at 2.2 times, suggesting a reasonable balance sheet strategy.

On July 1, 2025, Aircastle reported total liquidity of $2.6 billion, which includes $2.0 billion in undrawn facilities, $0.5 billion from projected adjusted operating cash flows, and $0.1 billion in unrestricted cash. With a robust portfolio comprising 260 unencumbered aircraft and other flight equipment valued at $8 billion, the company's financial health appears strong and conducive to future expansion.

Management's Insights and Market Outlook

Mike Inglese, CEO of Aircastle, commented on the performance, stating that the company is witnessing continued growth across air traffic markets in 2025, especially in regions such as Europe, Latin America, and Asia Pacific. The demand for both extensions and sales remains robust, as highlighted by the successful sale of 14 aircraft during the quarter. Recognizing the competitive landscape and current market volatility, Inglese expressed confidence in Aircastle's liquidity position, emphasizing their commitment to profitably growing their fleet of high-demand narrow-body aircraft.

As of May 31, 2025, Aircastle owned 264 aircraft and associated flight equipment with a net book value of $8.1 billion. The effective management of this significant asset base is crucial for sustaining and bolstering growth in the coming quarters.

Conference Call and Future Strategies

To discuss these results further, Aircastle will host a conference call on July 10, 2025, at 9:00 AM Eastern Time, open to all interested stakeholders. This will provide an opportunity for the management team to elaborate on their strategies and market outlook, along with addressing any questions from investors and analysts.

In conclusion, Aircastle's first quarter 2025 results signify a promising start to the year, driven by strategic acquisitions, outstanding fleet utilization, and solid financial management. As the demand for air traffic continues to rise, Aircastle is well-positioned to leverage its strengths and expand its footprint in the aviation market.