Aircastle has reported that net income for the quarter was US$57.5m, an increase of US$15.1m, or 36%, versus the prior year. Lower total revenues of US$2.4m were offset by interest expense of US$6.0m, lower depreciation of US$4.2m and a mark to market benefit from interest rate hedging of US$3.2m.
Total revenues were US$202.7m, a decrease of US$2.4m or 1.1%, from the previous year. The decrease was driven by a US$7.7m decline in lease rental and finance and sales-type lease revenues, partially offset by a $5.0 million increase in the gain on the sale of flight equipment. Rental revenues were lower primarily due to the impact of wide-body lease transitions and extensions which occurred during the fourth quarter of 2017 at lower lease rates.
Adjusted EBITDA for the first quarter was US$191.1m, a decrease of US$2.2m, or 1.2%, from the first quarter of 2017, due primarily to lower rental revenues, partially offset by higher gains from aircraft sales. We sold four aircraft for a gain on sale of $5.8 million during the first quarter of 2018 versus one aircraft sale that was closed during the first quarter of 2017.
During the first quarter 2018, Aircastle acquired four aircraft for US$111m and had commitments to acquire twelve additional aircraft in 2018 for more than US$490m. These sixteen aircraft have a weighted average age of 4.7 years and a weighted average remaining lease term of 5.6 years. All of the aircraft that the company has acquired or has committed to acquire this year are narrow-body aircraft.
As of March 31, 2018, Aircastle owned 222 aircraft having a net book value of US$6.7bn. The company also manage twelve aircraft with a net book value of US$634m on behalf of its joint ventures.
