AeroCentury reports fourth- quarter 2019 and fiscal year 2019 results

AeroCentury, an independent aircraft leasing company, has reported a fourth-quarter 2019 net loss of US$7.0 million, compared to a net loss of US$3.8 million for the fourth quarter of 2018.  Net loss for the year ended December 31, 2019 was US$16.7 million, as compared to a net loss of US$8.1 million in 2018. 

The results for the fourth quarter of 2018 and subsequent periods reflect the combined operations of AeroCentury and its subsidiary, JetFleet Holding, which was acquired by the company on October 1, 2018.The termination of the leases for, and repossession of, four aircraft from one of the company’s lessees  (repossessed aircraft) in the third quarter of 2019 had a substantial adverse impact on the Company’s results.  As a result of those events, the company recognized maintenance reserves revenue of US$17.0 million with respect to the repossessed aircraft at the time of repossession, but also recorded impairment losses for the repossessed aircraft of US$22.3 million and US$6.1 million during the third and fourth quarters, respectively, based on third-party appraised values for three of the aircraft and expected sales proceeds for the fourth aircraft. 

Results for the year ended December 31, 2019 also included impairment losses totaling US$2.6 million, based on third-party appraised values or expected sales proceeds, for three older turboprop aircraft, a spare engine, and an older turboprop aircraft that is being sold in parts.