Friday, Aircastle Ltd. (AYR), a provider of leased commercial jet aircrafts services, announced a decrease in fourth quarter earnings, despite a robust growth in revenues. The quarterly results were hurt by charges related to certain interest rate swaps. Excluding charges, earnings grew significantly.
For the fourth quarter, the company reported net income of $24.74 million or $0.32 per share, compared to $35.27 million or $0.46 per share in the comparable period last year.
Adjusted net income for the latest quarter was $46.63 million or $0.60 per share, compared to $35.38 million or $0.46 per share a year-ago. Adjusted net income including depreciation was $96.5 million or $1.24 per share, compared to $77.4 million or $1.01 per share in last year quarter. Adjusted earnings for the fourth quarter exclude charges related to certain interest rate swaps totaling $22.5 million.
On average, two analysts polled by Thomson Reuters expected the company to report earnings of $0.39 per share. Analysts' estimates typically exclude special items.
Quarterly revenues of the Stamford, Connecticut-based company grew 30.7% to $157.8 million from $120.7 million previous year. Wall Street analysts expected revenues of $39.9 million.
During the quarter, the company recorded end of lease maintenance revenue of $24.9 million primarily related to the repossession of seven 737-700 aircraft. The amounts were partially offset by lower interest income on its debt investments resulting from a previously disclosed sale in the first quarter of 2008 and $6.5 million in lease incentive amortization.
Fourth quarter lease rental revenue rose 17.1% to $137.1 million, driven by growth in the company's flight equipment.
For the fiscal year 2008, the company recorded net income of $115.3 million or $1.48 per share, compared to $127.3 million or $1.89 per share in last year.
Adjusted net income for the year was $150.9 million or $1.94 per share, compared to $116.1 million or $1.72 per share in the previous year. Adjusted earnings and depreciation for the year was $352.6 million or $4.53 per share compared to $243.3 million or $3.61 per share in last year.
Adjusted net income for the year excludes gains from asset sales of $6.5 million and charges of $41.8 million related to certain interest rate hedge agreements and deferred financing fee write-offs.
Total revenues for the year were $582.6 million, up from $381.0 million in last year. The increase in annual revenue was primarily driven by the effect of revenue for aircraft acquired in 2007 as well as lease rentals for aircraft acquired in 2008.
AYR is currently trading at $3.48, up $0.58 or 20.00%, on a volume of 0.29 million shares, on the NYSE.
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