Aircastle profit slips by a third in 2010

Aircastle reported a drop in revenue of 7.5% year-on-year and a 35.8% decrease in net profit in 2010. It was a "watershed" year, with demand for passenger and freight aircraft rising above pre-recession levels and growth rates returning to their long-term trajectory.

The company is encouraged by a favourable supply-and-demand trend for 2011, with continued delays in new platforms such as B787, B747-8 and A350 XWB are expected to amplify the scarcity effects, particularly for widebodies. Aircastle shares traded down 4.6% yesterday, on a mixed day for leasing company stocks.

Aircastle financial highlights for the 12 months ended 31-Dec-2010:

  • Revenue: USD527.7 million, -7.5% year-on-year;
    • Lease rental: USD531.1 million, +3.8%;
    • Maintenance revenue: USD15.7 million, -73.3%;
  • Total costs: USD461.5 million, -0.3%;
  • Profit from continuing operations before tax: USD72.4 million, -34.9%;
  • Net profit: USD65.8 million, -35.8%;
  • Total assets: USD4859 million, +9.1%;
  • Total liabilities: USD3516 million, +11.2%;
  • Fleet:
    • Passenger aircraft: 111;
    • Freighter: 25;
  • Number of lessees: 64.

Selected Lessors daily share price movements (% change): 10-Mar-2011