Aircastle posts second quarter 2016 net income of US$20m, down 52%

Aircastle reported that total revenues were US$190.0 million, a decrease of US$14.6 million, or 7% from the previous year. A decrease of US$8.8m in maintenance revenues and a US$6.4m drop in lease rental and finance and sales-type lease revenue accounted for most of the change. During the second quarter of 2015, Aircastle recorded US$21.3m of maintenance revenue, primarily due to the expiration of four leases with significant return compensation payments. The decline in lease rental and finance lease revenue was due to the sale of 43 aircraft since the second quarter of 2015. During the second quarter, the company agreed to sell two 25-year old 747-400 freighters scheduled to come off lease within the next twelve months and recorded an impairment charge of US$5.1m. Both aircraft were sold in July. Adjusted EBITDA for the second quarter was US$182.4m, down US$32.2m, or 15% from the second quarter of 2015, mostly due to lower revenues of US$14.6m and lower gains from the sale of flight equipment of US$18.9m. Net income in the second quarter was US$20.0 million, down 52%, or US$21.8m. The decrease was primarily due to lower revenues of US$14.6m and lower gain on sale of US$18.9m, partially offset by lower aircraft impairment charges of US$7.2m and lower depreciation and taxes of US$4.4m. Adjusted net income for the quarter was US$24.2m, down US$23.0m compared to the prior year period. The decrease was primarily due to lower revenues of US$14.6m and lower gain on sale of US$18.9m, partially offset by lower aircraft impairment charges of US$7.2m.