AP NEWS

Q1 Aircastle sees returns dip, profits rise

May 4, 2018 GMT

Aircraft-leasing firm Aircastle saw its revenues tick down slightly while profits jumped, according to its latest quarterly earnings report released this week.

For the first quarter, revenues totaled about $203 million, down 1 percent from a year ago, largely because of a decline in revenue streams such as lease rentals.

Profits rose to about $58 million, compared with about $42 million in the same period last year. Lower interest expenses and depreciation plus a benefit from interest-rate hedging offset the the lower revenues.

“Aircastle’s strong first-quarter results reflect portfolio enhancements that were completed over the past year,” Aircastle CEO Mike Inglese said in a statement. “The quality of our fleet has improved, and we continued to reduce residual value risk and generate healthy gains from aircraft sold during the first quarter.”

During past quarter, the company acquired four aircraft for $111 million and held commitments to acquire 12 more in 2018, for more than $490 million, including its first investment in Airbus’ A320 NEOs. In the past three months, the firm sold four older narrow-body aircraft for $44 million, with a gain of nearly $6 million from those sales.

As of March 31, Aircastle owned 222 aircraft, with a “net book value” of $6.7 billion.

Founded in 2004 and taken public in 2006, Aircastle announced last October it had relocated its headquarters to 201 Tresser Blvd., from the First Stamford Place complex.

The firm employs about 70 in Stamford, approximately 20 in Dublin and about a dozen in Singapore.

In the company’s first chief executive change, Inglese was appointed CEO in June 2017, succeeding Ron Wainshal who resigned to deal with undisclosed health issues.

pschott@scni.com; 203-964-2236; Twitter: @paulschott