Independent aircraft leasing company AeroCentury Corp., has reported fourth quarter earnings of US$6.02m, compared to US$385,000 in the third quarter of 2017 and a loss of US$40,000 in the fourth quarter of 2016.
Fourth quarter 2017 results included a US$5.4m tax benefit from the revaluation of the Company’s deferred tax liability caused by of the passage of the Tax Cuts and Jobs Act of 2017.
Earnings for 2017, which included the US$5.4m tax benefit noted above, totaled US$7.4m as compared to US$1.2m for 2016.
“Modernizing our portfolio by replacing older aircraft with younger mid-life aircraft remains a priority,” said Michael Magnusson, President. “During the fourth quarter, we sold two regional jets, one turboprop aircraft, one engine and aircraft parts, generating a net gain of US$922,000. To date, in 2018, we have already sold two aircraft, generating a US$45,000 gain. The average age of aircraft we are holding for lease is currently approximately 11 years.”
As previously reported, AeroCentury Corp. announced on October 26, 2017 the signing of a merger agreement to acquire JetFleet Holding (JHC), which has managed the Company’s operations and aircraft portfolio since AeroCentury’s founding in 1997.