Aircastle Announces Second Quarter 2026 Results

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October 14, 2026 7:00 AM EDT

Highlights for the Three Months Ended August31, 2026

  • Total revenues of $283 million and net income of $69 million
  • Adjusted EBITDA(1) of $247 million
  • Acquired 5 aircraft for $269 million, including 3 Airbus A321neo and 1 Boeing 737MAX8
  • Sold 11 aircraft and other flight equipment for proceeds of $243 million and gains on sales of $38 million
  • New technology aircraft comprised 54% of our fleet's net book value as of August 31, 2026

Liquidity

  • Redeemed all 400 outstanding Series A Preference Shares
  • 98% of total debt is unsecured as of August 31, 2026
  • Adjusted net debt-to-equity of 2.4 times as of August 31, 2026
  • Total liquidity of $2.8 billion as of October 1, 2026, which includes $2.0 billion of undrawn facilities, $0.7 billion of projected adjusted operating cash flows and sales through October 1, 2027, and $0.1 billion of unrestricted cash
  • 259 unencumbered aircraft and other flight equipment with a net book value of $8.2 billion





(1)

Refer to the selected financial information accompanying this press release for a reconciliation of GAAP to Non-GAAP numbers.

STAMFORD, Conn., Oct. 14, 2026 /PRNewswire/ -- Mike Inglese, Aircastle's CEO stated, "Strong travel demand and constrained aircraft supply continue to support lease rates and asset values.  Significant gains on sale contributed to second quarter net income of $69 million, reinforcing a disciplined, profitability-focused approach to capital deployment.  Year-to-date, we've invested $386 million in aircraft acquisitions and we're moving into the second half of our fiscal year with ample liquidity and confidence in our ability to service our customers and source attractive investments."

Aviation Assets

As of August 31, 2026, Aircastle owned 263 aircraft and other flight equipment having a net book value of $8.3 billion and managed an additional 5 aircraft.

Owned Aircraft

As of
August 31, 2026

As of
August 31, 2025

(Dollars in millions)

Net Book Value of Flight Equipment

$      8,300

$      8,470

Net Book Value of Unencumbered Flight Equipment

$      8,185

$      8,351

Number of Aircraft

263

270

Number of Unencumbered Aircraft

259

266

Number of Lessees

67

75

Number of Countries

42

46

Weighted Average Age (years)(1)

9.0

8.6

Weighted Average Remaining Lease Term (years)(1)

5.3

5.7

Weighted Average Fleet Utilization during the Second Quarter(2)

97.4 %

99.7 %




Managed Aircraft


Number of Managed Aircraft(3)

5

8







1

Weighted by Net Book Value.

2

Aircraft on lease as a percentage of total days in period weighted by net book value.  Utilization was impacted by certain aircraft previously leased to a customer that has ceased operations which are expected to remain off lease for an extended period, as well as aircraft redeliveries during the period and the timing of related transitions or sales.

3

Number of managed aircraft as of August 31, 2026 includes 4 aircraft owned by our joint venture with Mizuho Leasing.

Conference Call

Following this press release, management will host a conference call on Wednesday, October 14, 2026, at 9:00 A.M. Eastern Time.  All interested parties are welcome to participate in the live call.  The conference call can be accessed by dialing 1 (800) 836-8184 (from within the U.S. and Canada) or +1 (646) 357-8785 (outside the U.S. and Canada) ten minutes prior to the scheduled start. Please reference our company name "Aircastle" when prompted by the operator.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.aircastle.com.  Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. 

For those who are not available to listen to the live call, a replay will be available on Aircastle's website shortly after the live call.

About Aircastle Limited

Aircastle Limited acquires, leases and sells commercial jet aircraft to airlines throughout the world.  As of August 31, 2026, Aircastle owned and managed 268 aircraft leased to 67 airline customers located in 42 countries.

Safe Harbor

All statements in this press release, other than characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995.  Examples of forward-looking statements include, but are not necessarily limited to, statements relating to our proposed public offering of notes and our ability to acquire, sell, lease or finance aircraft, raise capital, pay dividends and increase revenues, earnings, EBITDA and Adjusted EBITDA and the global aviation industry and aircraft leasing sector. Words such as "anticipates," "expects," "enables," "intends," "plans," "positions," "projects," "believes," "may," "will," "would," "could," "should," "seeks," "estimates" and variations on these words and similar expressions are intended to identify such forward-looking statements.  These statements are based on our historical performance and that of our subsidiaries and on our current plans, estimates and expectations and are subject to a number of factors that could lead to actual results being materially different from those described in the forward-looking statements; Aircastle can give no assurance that its expectations will be attained.  Accordingly, you should not place undue reliance on any such forward-looking statements which are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this press release.  These risks or uncertainties include, but are not limited to, those described from time to time in Aircastle's filings with the SEC and previously disclosed under "Risk Factors" in Item 1A of Aircastle's most recent Form 10-K and any subsequent filings with the SEC.  In addition, new risks and uncertainties emerge from time to time, and it is not possible for Aircastle to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements.  Such forward-looking statements speak only as of the date of this press release.  Aircastle expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.

Aircastle Limited and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share data)


August 31,
2026

February 28,
2026

(Unaudited)

ASSETS


Cash and cash equivalents

$      173,080

$      179,889

Accounts receivable

24,083

18,239

Flight equipment held for lease, net

8,057,814

8,267,353

Net investment in leases, net

242,197

267,085

Unconsolidated equity method investment

32,010

47,540

Other assets

302,957

209,680




Total assets

$    8,832,141

$    8,989,786




LIABILITIES AND SHAREHOLDERS' EQUITY


LIABILITIES


Borrowings from secured financings, net

$      110,823

$      112,355

Borrowings from unsecured financings, net

5,397,989

5,139,411

Accounts payable, accrued expenses and other liabilities

392,300

381,274

Lease rentals received in advance

52,281

63,514

Security deposits

67,277

65,424

Maintenance payments

532,764

560,157

Total liabilities

6,553,434

6,322,135




Commitments and Contingencies






SHAREHOLDERS' EQUITY


Preference shares, $0.01 par value, 50,000,000 shares authorized, no shares issued
and outstanding at August 31, 2026 and 400 (aggregate liquidation preference of
$400,000) shares issued and outstanding at February 28, 2026

—

—

Common shares, $0.01 par value, 250,000,000 shares authorized, 17,840 shares
issued and outstanding at August 31, 2026 and February 28, 2026

—

—

Additional paid-in capital

1,978,774

2,378,774

Retained earnings

299,933

288,877

Total shareholders' equity

2,278,707

2,667,651

Total liabilities and shareholders' equity

$    8,832,141

$    8,989,786

 

Aircastle Limited and Subsidiaries
Consolidated Statements of Income and Comprehensive Income
(Dollars in thousands, except per share amounts)
(Unaudited)


Three Months Ended
August 31,

Six Months Ended

August 31,

2026

2025

2026

2025

Revenues:






Lease rental revenue

$  186,858

$  190,116

$  381,438

$  373,159

Direct financing and sales-type lease revenue

5,389

5,191

10,827

10,333

Amortization of lease premiums, discounts and incentives

7,871

(1,513)

8,262

1,253

Maintenance revenue

43,004

9,708

67,162

47,840








Total lease revenue

243,122

203,502

467,689

432,585

Gain on sale or disposition of flight equipment

38,162

23,889

49,028

54,178

Other revenue

1,669

119

1,766

591








Total revenues

282,953

227,510

518,483

487,354








Operating expenses:






Depreciation

91,728

96,762

184,556

192,578

Interest, net

75,387

70,529

146,603

139,370

Selling, general and administrative

20,331

24,247

41,907

44,938

Provision for credit losses

(92)

(116)

(275)

26

Impairment of flight equipment

7,730

31,153

11,091

36,219

Maintenance and other costs

8,108

3,977

13,400

8,221








Total operating expenses

203,192

226,552

397,282

421,352








Other income (expense):






Loss on extinguishment of debt

—

—

—

(2,973)

Other

358

61,041

(136)

60,585








Total other income (expense)

358

61,041

(136)

57,612








Income from continuing operations before income taxes and
earnings of unconsolidated equity method investment

80,119

61,999

121,065

123,614

Income tax provision

11,163

5,228

18,689

17,949

Earnings of unconsolidated equity method investment, net of tax

372

462

570

855








Net income

$   69,328

$   57,233

$  102,946

$  106,520








Preference share dividends

(5,367)

(10,500)

(5,367)

(10,500)








Net income available to common shareholders

$   63,961

$   46,733

$   97,579

$   96,020








Total comprehensive income available to common shareholders

$   63,961

$   46,733

$   97,579

$   96,020

 

Aircastle Limited and Subsidiaries
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)


Six Months Ended August 31,

2026

2025

Cash flows from operating activities:


Net income

$       102,946

$        106,520

Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:


Depreciation

184,556

192,578

Amortization of deferred financing costs

9,483

9,129

Amortization of lease premiums, discounts and incentives

(8,262)

(1,253)

Deferred income taxes

14,997

13,329

Change in net investment in leases

(2,156)

2,983

Security deposits and maintenance payments included in earnings

(21,822)

(88,490)

Gain on sale or disposition of flight equipment

(49,028)

(54,178)

Loss on extinguishment of debt

—

2,973

Impairment of flight equipment

11,091

36,219

Provision for credit losses

(275)

26

 Distributions from unconsolidated equity method investment

10,055

—

Other

—

(859)

Changes in certain assets and liabilities:


Accounts receivable

2,880

(745)

Other assets

3,515

1,950

Accounts payable, accrued expenses and other liabilities

(11,559)

1,113

Lease rentals received in advance

(8,127)

(2,648)

Net cash and cash equivalents provided by operating activities

238,294

218,647

Cash flows from investing activities:


Acquisition and improvement of flight equipment

(376,435)

(980,225)

Proceeds from sale or disposition of flight equipment

357,134

299,523

Proceeds from settlement of insurance claim

—

40,926

Proceeds from sale of investment in debt securities

—

10,128

Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales deposits

15,365

(584)

 Distributions from unconsolidated equity method investment in excess of earnings

5,475

—

Other

(759)

588




Net cash and cash equivalents provided by (used in) investing activities

780

(629,644)

Cash flows from financing activities:


Redemption of preference shares

(400,000)

—

Proceeds from secured and unsecured debt financings

1,162,634

1,590,489

Repayments of secured and unsecured debt financings

(906,687)

(1,298,264)

Deferred financing costs

(8,384)

(12,005)

Security deposits and maintenance payments received

57,680

84,842

Security deposits and maintenance payments returned

(48,736)

(33,490)

Dividends paid

(102,390)

(52,284)




Net cash and cash equivalents (used in) provided by financing activities

(245,883)

279,288

Net decrease in cash and cash equivalents

(6,809)

(131,709)

Cash and cash equivalents at beginning of period

179,889

279,052




Cash and cash equivalents at end of period

$       173,080

$        147,343

 

Aircastle Limited and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
EBITDA and Adjusted EBITDA Reconciliation
(Dollars in thousands)
(Unaudited)


Three Months Ended

August 31,

Six Months Ended

August 31,

2026

2025

2026

2025

Net income

$    69,328

$    57,233

$   102,946

$   106,520

Depreciation

91,728

96,762

184,556

192,578

Amortization of lease premiums, discounts and incentives

(7,871)

1,513

(8,262)

(1,253)

Interest, net

75,387

70,529

146,603

139,370

Income tax provision

11,163

5,228

18,689

17,949








EBITDA

$   239,735

$   231,265

$   444,532

$   455,164

Adjustments:






Impairment of flight equipment

7,730

31,153

11,091

36,219

Loss on extinguishment of debt

—

—

—

2,973

Adjusted EBITDA

$   247,465

$   262,418

$   455,623

$   494,356

We define EBITDA as income (loss) from continuing operations before income taxes, interest expense, and depreciation and amortization.  We use EBITDA to assess our consolidated financial and operating performance, and we believe this non-U.S. GAAP measure is helpful in identifying trends in our performance.

This measure provides an assessment of controllable expenses and affords management the ability to make decisions which are expected to facilitate meeting current financial goals, as well as achieving optimal financial performance.  It provides an indicator for management to determine if adjustments to current spending decisions are needed.

EBITDA provides us with a measure of operating performance because it assists us in comparing our operating performance on a consistent basis as it removes the impact of our capital structure (primarily interest charges on our outstanding debt) and asset base (primarily depreciation and amortization) from our operating results.  Accordingly, this metric measures our financial performance based on operational factors that management can impact in the short-term, namely the cost structure, or expenses, of the organization.  EBITDA is one of the metrics used by senior management and the Board of Directors to review the consolidated financial performance of our business.

We define Adjusted EBITDA as EBITDA (as defined above) further adjusted to give effect to adjustments required in calculating covenant ratios and compliance as that term is defined in the indenture governing our senior unsecured notes.  Adjusted EBITDA is a material component of these covenants.

Contact:
Aircastle (Ireland) DAC (US)
Jim Connelly, SVP ESG & Corporate Communications
Tel: +1-203-504-1871
[email protected]

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/aircastle-announces-second-quarter-2026-results-302907949.html

SOURCE Aircastle Ireland DAC


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