Willis Lease Finance Corporation has reported third-quarter total revenues of US$76.9 million and pre-tax earnings of US$8.4 million. For the three months ended September 30, 2022, aggregate lease rent and maintenance reserve revenues were US$60.0 million and spare parts and equipment sales were US$7.0 million.
The company reported increased total revenues in the third quarter when compared to the prior year period, primarily due to an increase in lease rent revenue.
Maintenance reserve revenue was US$20.4 million in the third quarter of 2022, a decrease of 13.6% compared to US$23.7 million in the same quarter of 2021. This decrease was due primarily to a reduction of US$14.1 million in long-term maintenance revenue relative to the comparable period in 2021, which was offset by a quarter-over-quarter increase of US$11.0 million in short-term maintenance reserve revenue, which is directly influenced by on lease engine flight hours and cycles.
Spare parts and equipment sales increased to US$7.0 million in the third quarter of 2022, compared to US$5.1 million in the third quarter of 2021. The increase in spare parts sales was driven by improved industry wide demand for surplus material compared to the prior year period.
Gain on sale of leased equipment was US$0.9 million in the third quarter of 2022 reflecting the sale of two engines. Gain on sale of leased equipment was US$2.4 million in the third quarter of 2021, reflecting the sale of six engines, one airframe and other parts and equipment (£1.00 = US$1.15 at time of publication).
