Aircastle Limited reported fourth quarter net income of $24.7 million and adjusted net income of $46.6 million. Net income for the year ended December 31, 2008 was $115.3 million and adjusted net income for the year of $150.9 million. Fourth quarter total revenues were $157.8 million, an increase of $37.1 million or 30.7% over fourth quarter 2007. Fourth quarter lease rental revenue was $137.1 million, up 17.1% year over year, driven by growth in flight equipment. During the quarter the company recorded end of lease maintenance revenue of $24.9 million primarily related to the repossession of seven 737-700 aircraft. These amounts were partially offset by lower interest income on debt investments resulting from a previously disclosed sale in the first quarter of 2008 and $6.5 million in lease incentive amortization. Adjusted net income for the quarter of $46.6 million grew 31.8% year over year, and excludes charges related to certain interest rate swaps totaling $22.5 million.
Total revenues for the year were $582.6 million, an increase of 52.9% over 2007. The year over year revenue increase was primarily driven by the effect of a full year of 2008 revenue for aircraft acquired in 2007 as well as lease rentals for aircraft acquired in 2008. Also contributing to the increase was maintenance revenue related to lease expirations and terminations of $34.5 million. Adjusted net income was $150.9 million, or $1.94 per diluted share, and excludes gains from asset sales of $6.5 million and charges of $41.8 million related to certain interest rate hedge agreements and deferred financing fee write-offs.
As of December 31, 2008, Aircastle owned aviation assets having a net book value of $3.8 billion, including 130 aircraft. Sterling Airlines A/S ceased operations as of October 29, 2008 and Aircastle has taken possession of the seven 737-700s which had been leased to Sterling. The Company has signed lease agreements or letters of intent for six of these aircraft.
