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Aircastle posts $152 mln 2016 net profit

Aircastle posts $152 mln 2016 net profit

MOSCOW: Stamford, Connecticut-based commercial aircraft lessor Aircastle posted a 2016 net profit of $151.5 million, up 24.4% from net profit of $121.7 million in 2015. Aircastle attributed the growth primarily to a $91.3 million reduction in non-cash impairment charges. Aircastle’s total revenues for the year were $773 million, down 5.6% from $819.2 million in 2015. Full-year lease rental revenues were $742.4 million, up 0.2% over 2015. Aircastle said the decrease in total revenues was driven by reductions in maintenance revenue and lease-end termination fee revenue. The company’s maintenance revenue for the year totaled $33.6 million, down 52.7% year-over-year (YOY); lease-end termination fee revenue for the year was $7.3 million, down 58.8% YOY. “Aircastle took important steps to profitably grow the company in 2016, with an emphasis on attractive narrowbody opportunities,” Aircastle acting CEO Mike Inglese said. “Profitable sales also remained a priority … as we sold 30 aircraft and further reduced our exposure to the widebody and freighter markets.” He added, “We have significantly transformed our portfolio to focus on narrowbody aircraft.”

Aircastle acquired 60 aircraft in 2016, valued at $1.6 billion, including 29 aircraft in the fourth quarter. Average age of the aircraft was 7.4 years and the leases had an average remaining term of approximately 5.4 years, the company said. Fifty-seven of the aircraft purchased in 2016 are narrowbodies. The sale of 30 aircraft in 2016 brought in $755.9 million in net proceeds; 11 aircraft were sold in the fourth quarter alone. The company divested itself of seven widebodies and three freighters during the year. The company has acquired or committed to acquire three aircraft so far in 2017 and has dedicated $1.1 billion to obtaining 28 aircraft through 2021, including 15 Embraer 190-E2s and 10 195-E2s. As of Dec. 31, 2016, the company owned 193 aircraft, up 19% from 2015, with a net book value of $6.5 billion. The company also manages 13 aircraft on behalf of two joint ventures, with a net book value of $689 million. Aircastle’s top 10 lessees in 2016 were Indonesian low-cost carrier Lion Air (12 aircraft), airberlin (11), Avianca Brazil (10), South African Airways (four), Singapore Airlines (four), South America’s LATAM (three), Malaysia’s AirAsia X (three), Russia’s AirBridgeCargo (two), Emirates (two) and Thai Airways (two).