Aircastle Ltd. 2nd-quarter net income falls on drop in revenue

Aircastle 2Q net income falls on drop in revenue

STAMFORD, Conn. — Aircastle Ltd., which leases planes to airlines, posted a 34 percent drop in second-quarter net income as revenue fell and the company made less rental revenue.

The company said it earned $18.1 million, or 23 cents per share, in the three-month period ended June 30. That’s down from the $27.6 million, or 35 cents per share, the company earned in the same period last year.

On an adjusted basis, the company earned $20.5 million, or 26 cents per share.

Analysts expected the company to earn 25 cents per share, according to Thomson Reuters. Analysts typically exclude one-time items from their estimates.

Revenue fell 4.9 percent to $130.2 million from $136.9 million, partly on lease rental revenue that fell less than 1 percent to $128.1 million.

The lease rental revenue drop includes a decrease of $4 million due to aircraft transitions and lease extensions, though that was partially offset by the impact of aircraft acquisitions net of dispositions of $3.1 million.

The company said during the quarter it completed the sale of one of the three owned Boeing 757-200 aircraft it has subject to a forward sale agreement. The company recorded a loss of $1.3 million on the sale because it had additional maintenance costs it incurred to meet delivery conditions under the sale agreement.

Aircastle said it expects to sell the second aircraft during the third quarter. The final aircraft is currently on lease and should be delivered under the sale agreement late next year.

Shares fell 45 cents, or 4.8 percent, to $9.01 in midday trading Tuesday.