AeroCentury, an independent aircraft leasing company, has reported a first-quarter 2021 net loss of US$5.4 million, compared to a net loss of US$10.2 million for the first quarter of 2020. Revenues and other income decreased by 47% to US$2.5 million in the first quarter of 2021 from US$4.8 million in the first quarter of 2020. The decrease was primarily a result of a 43% decrease in operating lease revenues to US$2.7 million in the first quarter of 2021 from US$4.8 million in the first quarter of 2020.
This was a consequence of reduced rent income from the sale of aircraft during the fourth quarter of 2020 and first quarter of 2021 and reduced rent for two assets in the 2021 quarter as a result of lease amendments related to the COVID-19 outbreak.
The results for the quarter ended March 31, 2021 also reflected reduced depreciation expense compared to the first quarter of 2020, primarily as a result of aircraft sales, and increased professional fees and other expenses, mainly due to higher legal expenses. During the first quarter of 2021, the Company recorded a bad debt allowance of US$821,000 related to one of its sales-type finance leases. During the first quarter of 2021, the Company recorded an impairment loss of US$1,940,400 on its two assets held for sale, based on expected sales proceeds, which had an aggregate fair value of US$347,400.
The results for the quarter ended March 31, 2020 included impairment losses totaling US$6.7 million, arising from estimated sales proceeds for three regional jet aircraft and an older turboprop aircraft that is being sold in parts.  Results also included a US$1.2 million bad debt allowance related to two of the Company’s aircraft that are subject to finance leases and a US$1.9 million non-cash charge related to the Company’s interest rate swaps, which is included in interest expense.